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Updated about 8 years ago on . Most recent reply

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76
Posts
13
Votes
Steven McPherson
  • Fort Worth, TX
13
Votes |
76
Posts

How do brokerages deal with commissions on wholesale deals?

Steven McPherson
  • Fort Worth, TX
Posted

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?

Most Popular Reply

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49
Posts
86
Votes
Anthony Vann
  • Investor
  • Hampton, VA
86
Votes |
49
Posts
Anthony Vann
  • Investor
  • Hampton, VA
Replied

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.

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