Fort Worth, TX · Member since 2015 · 76 posts · 13 votes
I am about to get my real estate license and will be starting my search for brokerages soon. I know that every one is different, but do brokerages usually collect commissions when their agents wholesale a deal? For example, if I wholesale a deal and make a $1000 profit, will the brokerage collect a x% commission off that?
Investor · Hampton, VA · Member since 2017 · 49 posts · 86 votes
9y
Every state has different rules for their agents but it would be very difficult to be an agent and a wholesaler. As an agent you have a fiduciary responsibility to get the most for your clients. So, if you get a house under contract for 50K then assign that for 55K the owner could say you knew it would go for 55K in the first place and file a complaint to whatever your overseeing department is in Texas. In VA it's DPOR. As an agent you are held to a much higher standard in anything involving real estate. I would be much more worried about that aspect than the commission. Check on that first.
Investor · Hampton, VA · Member since 2017 · 49 posts · 86 votes
9y
Every state has different rules for their agents but it would be very difficult to be an agent and a wholesaler. As an agent you have a fiduciary responsibility to get the most for your clients. So, if you get a house under contract for 50K then assign that for 55K the owner could say you knew it would go for 55K in the first place and file a complaint to whatever your overseeing department is in Texas. In VA it's DPOR. As an agent you are held to a much higher standard in anything involving real estate. I would be much more worried about that aspect than the commission. Check on that first.
Fort Worth, TX · Member since 2015 · 76 posts · 13 votes
9y
@Anthony Vann I understand what you are saying. My question was more along the lines of me not acting as an "agent". I plan on searching for deals and "buying" them from the seller. Afterwards I would do a double-close or in rare cases a contract assignment. My assumption is that my brokerage would want a commission off these profits, am I correct?
Wholesaler · Waldorf, MD · Member since 2015 · 459 posts · 245 votes
9y
@Steven McPherson that's something to discuss with either a potential broker or network with agents in your area. Not every broker will allow you to wholesale or even understand the wholesaling business. If they tell you it's illegal, run, not walk away.