Can a licensed real estate agent wholesale property in Florida?

13 Replies

@Jacques Wurms it depends on how your broker feels about it. I have a realtor that I work with, whose broker understands real estate investing so he doesn't mind. You do have to make some disclosures to the seller (I don't know what those are), but I believe what you want to find out is if your broker understands what you will be doing.

There are quite a few realtor/Brokers on BP that can chime in.

I don't think investors make enough offers. I like to negotiate the best possible deal put it under contract and present a worked out deal to my investors.

Proper disclosure being:

I am a realtor and I will be trying to assign this contract? 

What if I ask the seller for a 3% commission if I bring a buyer, and then make an offer with assignment? Is it legal to make money on two sides?

Originally posted by @Jacques Wurms :

Proper disclosure being:

I am a realtor and I will be trying to assign this contract? 

What if I ask the seller for a 3% commission if I bring a buyer, and then make an offer with assignment? Is it legal to make money on two sides?

That seems a little shady..................BUT if you disclose EVERYTHING and seller still agrees, thats a different story...I would feel even better letting seller know what the ARV is so that ALL is transparent.....just my 2 cents

Sounds like a real estate board would be sceptical that you're doing what's best for your "client".  If you're going to take a commission for "selling" the home I'm going to assume they'll consider them your client.  If you're going to make money on buying/assigning then you'll probably be ok depending on local laws, assuming you fully disclose to seller what your intent is.

Of course everything has to be disclosed. Point of this discussion is to find the legal boundaries, and find alternative ways of doing deals.

I wouldn't double dip. You should be able to just collect your assignment and be okay with that. 

From my understanding it would behoove you to obviously practice full disclosure. So in my thinking since I also have my license I intend to be upfront that i am a realtor, but also a investor that i can make an offer to list your property if you wish or i can make you offer to purchase now as an investor. Like everyone said it might depend on your broker being comfortable you making money under their nose with nothing for them. Just my thoughts any broker want to chime in from Florida ?

I just got through discussing this topic with a very success broker that has been running several brokerages in FL for the last 30 years. She said wholesaling is legal in FL despite what you will here. She feels most realtors are threatened by this practice. She said that as a real estate licensee you have to disclose to whoever you are buying or selling to that you are licensed once you are in "serious negotiations".

Responding to some of the previous comments: FL licensees do not normally perform under a "single agent" title but under a "transactional" status. So, the rules are different compared to other states.

In my opinion there isn't anything wrong with what you are asking but you will probably meet a lot of resistance in certain areas. I feels that its a win win for everyone. Its the same thing that realtors do. A middle man that collects a fee.

Good luck and do the research, you find that there are ways to do it.

Hi, @Jacques Wurms !

I'm actually a new real estate agent in Tampa Bay. I haven't closed my first wholesale deal yet (mostly because I've been so busy with my full-time job and going to classes to get my license) but I've been hunting for leads and getting into the biz as much as I can for a while. When I started I had no intention of becoming an agent, but since I'm moving to Tampa and wanted out of my industry but to stay in sales.. And I've always loved real estate, I realized, "Oh, wait. Why don't I become an agent?" 

Anyway, before I got my license I was very cautious because I knew the extra rules and regulations that we have to deal with. I actually had several people encourage me to get my license because it can aid in your wholesaling endeavors. On one hand, some owners will try to tie you up and say, "Well is the house worth what you're offering me? You should know." Then again, others will trust you more because you are licensed in the industry. You can turn around anything they throw at you, though. Are they trying to sell their house quickly, without the hassles and fees of getting it listed and dealing with negotiation and pretty much a minimum of 45 days to close? If they really want, you could list it for them, but... And you can make that sound as favorable as unfavorable as you want. 

You make it clear that you're representing yourself, not them. I don't know strict legalities, but personally I intend to disclose to every seller that I may keep the property for myself, to hold, to flip, to live in, or I may also reassign it because I have a network of investors that I know who might also have interest in it. Some wholesalers pretend the whole way that they are going to be the one buying and then reassign the contract, which may end up confusing the seller and pissing them off, muddying your reputation. Full disclosure is important, and it gets easier the more confident and skilled you are. What you can promise is that there will be a quick closing and that they'll get paid what the contract is signed for. 

Good luck! Since I'm done with my old job now I'm going to have more time to scout for deals, so I'll have greater chances of actually getting things done. Keep us updated on your progress if you decide to wholesale.