You know I’m a wholesaler…
But did you know that I’m also a licensed real estate agent?
Yep, it’s true.
Now, you don’t have to be licensed to wholesale property—when you do it the right way: market the contract, not the house; you must have the intent and funds to actually close on the deal.
But, personally, I recommend that if you’re in real estate investing, it’s smart to be a licensed Realtor too.
Besides the fact that you have more leeway and more credibility when doing wholesale deals as a Realtor….
One of the nice benefits is that you will definitely make more money. Because you’ll get the commission that comes along with being an agent plus the wholesaling fees.
Now, the most important piece I can share when you’re wholesaling deals as a Realtor: DISCLOSE.
You MUST disclose that you’re licensed. It’s illegal if you don’t.
You should also disclose that you’re going to make money from the deal.
You can say to the seller that, as the buyer, you’re not representing anyone else except yourself. And I include a clearly written brief paragraph in the agreement that says:
“Seller understands that the buyer is a Realtor/licensed agent representing only themselves not anyone else. Seller understands that the buyer will resell the property for a profit of $1,000–$100,000.”
See, simple. No need to overcomplicate this.
Here’s another nice benefit of being license:
You have less opportunity to get in the crosshairs of your state Real Estate Commission. They don’t like wholesalers and the more you can stay under the radar, the better.
And don’t worry if you’re stressing about the process to get license…
Getting your license doesn’t have to be a long, drawn-out ordeal. You can get licensed in just a couple of weeks—take the classes and then quickly take the exam—all for just a few hundred bucks.
One final note…
If you do decide to get your license, make sure you’re working with an investor-friendly broker who doesn’t mind that you’re doing deals on your own.
And you definitely don’t want to work with a broker who requires you to split 50% of the commission. Walk away if they do.
So… the big takeaway if you’re wholesaling deals as a licensed agent:
- Always disclose!
I love having my license, and I think you should consider getting yours too.