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Wholesaling
Jerome Harrod II's profile image
  • Professional
  • from Baltimore, Maryland
  • Member since Jul 9, 2010

User Stats

79
Posts
47
Votes
Jerome Harrod II's profile image
  • Professional
  • from Baltimore, Maryland
  • Member since Jul 9, 2010
Jerome Harrod II
  • Professional
  • Baltimore, MD
47
Votes |
79
Posts

The difference between "wholesaler" and "broker"?

Jerome Harrod II
  • Professional
  • Baltimore, MD
Posted Jul 13 2010, 20:03

I don't know the terms well, but are "wholesalers"(?) the same as brokers? They both act as middleman in a deal right for a fee.

If not then I'am lost, I'am a newbie to the business and I just finished a rather hot topic here I started trying to decipher what I do and who I'am here:
http://www.biggerpockets.com/forums/70/topics/52242-are-note-finders-just-another-broker-

I still don't feel that I'am a note broker, especially since after reading an article from another "wholesaler"(?) here:
http://www.biggerpockets.com/forums/93/topics/37929-beginners-guide-to-wholesaling-killer-exit-strategies-pt-1-

Now,as I read that article I started to second guess my career title as broker. One paticular part of that guide that caught my eye was the "Double Closing (Simultaneous Closing) " section. Which just described my job description exactly but I work with notes instead of property!

Okay, I work with people who have notes and match them with buyers that purchases note. I go out and find people holding notes secured by real estate, after gathering the note information and finding a buyer, the seller and I sign a commitment agreement, from there the seller gives me a copy of all necessary documents, after the buyer signs and returns my NCND (Non-Circumvent, Non-Disclosure agreement) and payout agreement, I surrender all contact info to him and pass along the documents I received from the seller, and finally receive my finders fee.

This process is exactly as Eric explains it as:
Build buyers list==>Find homes==>Put under contract (your name or llc)==>Sign a completely new contract with your buyer==>Double Closing ==> Closing #1-Close with the owner of the home (No money is exchanged)==>Closing #2-Close with your buyer (Give you money)==>Give the money from the closing with your buyer to the title office==>Leave closing with difference between closing #1 and closing #2.

I have closed 4 deals this way, so I know what I'm doing but I don't know how to call it. Now, I was hoping you all could explain this to me and help me confirm my position in the note business. Am I a broker or a "Wholesaler"(?) of notes? Does this mean I change my title to investor or keep the same as broker? Getting these answers will help me immensely.

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