New way to wholesale

[Storm S.]

Hello everyone I think I’ve come up with a way to kind of bring wholesaling out of the grey area of the law. This won’t work in all states, but it will work in California. Step one is you need to get licensed, then instead of wholesaling people property you instead take them on as a net listing at the selling price that you would have bought it if you were wholesaling and set a minimum commission for example 5000 dollars, if it sells at or below there net price. Or instead you could do a option listing. This won’t work if net listings are illegal in your state and there is still the ethical concerns about wholesaling this is just a solution for the wholesalers who don’t have the money to actually close so they are not performing fraud and to eliminate the possibility of being classified as brokering without a license. This method allows you to get paid the same way you would via a normal wholesale but with much less risk such as not being able to flip in the minimum time frame or losing earnest money. Any thoughts on this idea

[Max Gradowitz]

You CAN do that, but keep in mind that as a licensed agent you have a lot of fees to pay every year.  Also, when you are licensed and you close a transaction, the commission check goes to your broker, not you.  Your broker will then give you your share/split of the commission according to your agreed upon split arrangement.  If that's 50, 60, or 70 percent, that's how much you'll get.  So.... With that much work and money in it, you might as well do traditional sales as an agent at that point.