Updated about 8 years ago on . Most recent reply
How do brokerages deal with commissions on wholesale deals?
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
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.



