Wholesaling in Florida, as a Real Estate agent

6 Replies

I am a real estate agent in Florida, Broward County. I want to do wholesaling without involving the broker. I am not sure how I can proceed to doing this. I want to do my business without breaking laws or regulations. I know it can be done but not sure how to get started. I am considering in opening an LLC. Please advise.

You can not wholesale without involving your broker. It is immoral and against the law. It costs a broker a lot of money to have real estate agents. Sounds like you are trying to open an LLC in attempts to hide what you are doing from your broker. Can you? Sure! Will your broker sue you when they find out, YES!! Will you lose your license? YES!!!

Tell your broker that you would like to start wholesaling on the side and would like to work out some sort of flat rate deal with them. If they refuse, find a broker that will. If you just wanted MLS access to invest then there are online brokers that can accommodate your wholesale deals for a flat fee (not including closing costs, etc). Paying someone $500 or whatever a deal is better for your piece of mind and everyone else involved.

Also do some research here on the forums.  You need to be very careful how you word your contracts since you are a licensed agent not acting as one.  You can do it, just do it the right way.

Thank you for your response.  I am not attempting to HIDE anything.  Just like brokers pay a lot of money to have agents agents pay alot of money to hang a license too.  I work very hard as an agent and the broker makes lots of money too.  Again thank you for your response very helpful.

Originally posted by @Lizzette Ponce :

I am a real estate agent in Florida, Broward County. I want to do wholesaling without involving the broker. I am not sure how I can proceed to doing this. I want to do my business without breaking laws or regulations. I know it can be done but not sure how to get started. I am considering in opening an LLC. Please advise.

 ALL monies must pass through your broker or you would be brokering WITHOUT A LICENSE. The state has open cases and is pursuing agents for these actions. 

Originally posted by @Lizzette Ponce :

ok.  Thank you for the feed back.  I just wanted to make sure before making any moves.

 Want to know the reason why?:

Bringing an end buyer is a brokerage activity. If you don't run proceeds through the broker, and you do not have your own brokerage, it would be the same as taking a listing on the side and keeping all the funds. Many so called "wholesalers" don't understand that bringing an end buyer is a brokerage activity. See below
A BAR SALE
Advertising
buying
appraising
renting
selling
auctioning
leasing
or exchanging
FOR ANOTHER is what agents do. All of these are BROKERAGE activities.

John thank you so much.  I want to make money but within the law and you seem to be very knowledgeable on the subject.  I truly appreciate it your response.  I will reach out to my broker and negotiate s flat rate with him.