Im a licensed real estate agent and have recently seen some buddies wholesaling and making a WHOLE LOT of money the difference between my percentage and what they take home when a deal closes is HUGE and I was wondering if anyone knew if I could wholesale deals as a realtor? If I can I see a lot of ppl in this thread asking about contracts could I use the same contract I use for all of my buyers?
You can definitely wholesale as a realtor. I don't exactly know what you have to do differently but I am def following this thread.
@Ethan Neumann that's what im trying to find out because in my state net listings are illegal and essentially that's what I would be doing if I were to wholesale their house. Im thinking if I come up with a different approach to the prospecting and farm these neighborhoods differently and use a different contract I could be okay. At the least I have to disclose "I am realtor and plan on making money on your property" I think after that's been said and done most legal implications should be out of the way.
What wholesale contracts do I use in KY? Assignment contract and cash buyer contracts, please.
You could just get it under assignment then sell the assignment.
You can certainly use your state's standard forms for your wholesale deals too. That said, your first stop should be to your state licensing board and/or your broker to ask the legal questions regarding wholesaling as a licensee. Every state has different laws on this.
I serve many licensed agents who also wholesale. They get two bites at every apple with the primary message being a cash offer at X$ or list for Y$.
If the cash offer isn't accepted then a listing agreement at their number is reached. A net listing is still a listing agreement and illegal because as a Brokerage service it is ignoring fiduciary duty to the seller.
A cash offer is made via contact and is not a Brokerage service...as the buyer, you owe no fiduciary duty. A buyer has no obligation to pay top dollar and can negotiate the best price for themselves. If the seller wants more than you are willing to pay, they have the right to say no to your offer.
At that point, as they are wishing to sell, you can put your agent hat on, offer Brokerage service and get the property listed.
Net listings may be illegal, but I'm pretty sure that even the licensed can offer to buy properties from anyone at prices that make sense to them (though you are still required to disclose that you are licensed) The difference is in the intention.