Can Real Estate Agents Wholesale Properties

What’s going on guys, Tre’ Leon Bey here. Today we are talking about “Can real estate
agents wholesale properties?” My quick answer is yes, you’re able to wholesale
properties. I’m actually a licensed real estate agent
myself but I also want to bring to your attention that it does depend on which brokers you’re
with. I’ve been with several different brokers
I want to say maybe about over seven different brokers throughout my real estate career and
different brokers have different views on wholesaling real estate. For one, because when you wholesale real estate
you basically cut the broker out of getting there and cutting the deal, and so you can
imagine most brokers are going to frown upon wholesale real estate because they feel like
they’re not getting their piece in your real estate efforts. So, even if they know its legal they may just
tell you that they don’t like for you to do it or that you can’t do it if you’re
under their brokers and some of them actually have language inside of their contracts. When you’re signing up to be with the brokers
that says that you can’t wholesale real estate or you’re not allowed to assign contracts
and use those type of things, you do have to be very aware of what type of broker that
you’re with. I would definitely recommend if you can just
mention it to your broker, be upfront with them. I know the broker that I’m with now, luckily
I was very upfront like, “Hey, this is what I love to do, I’m really a real estate investor,
I love the wholesale properties, I want to be doing that majority of my time” and they
will like “Hey, that’s fine as long as you pay us our fee every month, we’re good
to go.” Then you also have other brokers where I’ve
mentioned, and they’re like, “Heck, no you’re not going to be able to do it”
and then there’s other times where I was with brokers and I didn’t mention it, because
I knew that they didn’t like it and I knew that I wanted to be successful being a real
estate investor. So, I went forward and I wholesale properties
without letting the broker know. So, the main thing is that like I said, brokers
they really want their cut in the deal, they want know that sure interest is furthering
the real estate brokerage and representing buyers and sellers so that you can actually
use your license in that way and that way they also you get a commission that way. Well, wholesaling properties, you’re not
getting any commission. You’re working under your on principle,
under your own interest as a real estate investor and so any funds that you get is going to
be in your own profit. You’re not even going to have to submit
the deals to the broker, you don’t even have to submit any paper works to your broker,
really easy and I love it that way. Now I do feel like if you want to protect
yourself even more, you can just simply create an LOC. Just create a company, do all of your deals
inside of the company’s name and so that way it won’t even be an if, and, or but,
whether not you can do real estate wholesaling in your name or not. You can protect yourself by simply starting
an LOC, that’s usually a hundred dollars or a little bit more than a hundred dollars
depending on which state you’re in, so that’s absolutely no excuse why you feel like you
can’t do real estate. Now, sometimes, it can be a moral thing in
your head, a lot of times it’s in our head where we think, “Oh, I’m not able to do
this”, so they said I can’t do it and I know if I want to listen to other people
who said that real estate agents can’t wholesale properties, men! I wouldn’t be where I am today. So, I’m just totally glad that I didn’t
listen to the negative say-ers, I didn’t listen to the people who said don’t do it
or you shouldn’t do it and I just went on my own. On my own taught process and my own determination
to be able to make this work for me because I knew that if it fit my lifestyle more than
the need of being a real estate agent. You know, I’m not somebody who likes to
get dressed up all the time and be politically correct and drive people around in my car
and go search for homes and pat buyers on a butt and represent other people. That’s just not my lifestyle. That’s just not, not would fit me personally. So, I knew being a real estate investor was
something that I wanted to do, I just didn’t know how to do it, how to get from being a
real estate agent to being a real estate investor because I didn’t have a lot of money, I
didn’t have any credit. So I was like, “How can I get in this game?”
and learn it and being successful would be in real estate investing and I thought being
a real estate agent would help me to do that. But come to find out, wholesaling was the
thing that allowed me to be able to go from being a real estate agent to being a successful
real estate investor without using my own money and credit because it allows me to be
able to really learn this game more than I ever could have as a real estate agent. I was literally a real estate agent for four
years before becoming a real estate wholesaler and the information that I learned in one
year of being a real estate wholesaler and an investor blew out the water of everything
I learned four years prior. Literally, I felt like I didn’t know anything
compare to what I learned with being on my own as a real estate investor. Alright, so I recommend if you’re a real
estate agent, just add on wholesaling to which you already do. You don’t even have to dismiss what you’re
already doing if you are really a successful real estate agent, you can still do that. You just have to know when to use your real
estate agent hat and when to use your real estate investor hat. You can’t do both at the same time, so if
you’re going in there speaking to the seller, if you’re going speaking to the seller saying
“Hey, I’m a real estate agent and I can represent you, I can help you to sell your
house and I can find a buyer.” Or, you’re going in there as a real estate
principal, as a real estate investor and you’re not a real estate agent anymore so you can’t
use those same terms. You can’t go in there with that same approach. You’re using totally different contracts. You’re doing totally different ways even
though they sound similar, it seems like similar ways, it’s two totally different things. You can have your agent hat on if you want,
but you take that off if you put on your real estate investor hat and that’ll help you
to be able to do things legally and ethically when it comes down to your brokers. So if you have any questions about that, you
can definitely just hit me up. Also, if you join our real estate investing
course, the link is down below. I’ll be able to walk you through everything
so you make sure that you’re doing everything correctly. Alright, see you guys on the next one.

6 thoughts on “Can Real Estate Agents Wholesale Properties

  1. Do you feel like having your real estate license was beneficial to your wholesaling success. Especially with understanding the legality of your deals

  2. Thanks for this. I'm just getting into Wholesaling and hearing about the new laws that were passed in Illinois against wholesalers and how it will be moving across the states and likely here in Georgia. This prompted me to look into getting licenced to be ahead of the game but I wanted to make certain Wholesaling is cool if I do because I'm in it to be an investor and not an agent. Is there anything more you recommend regarding this subject?

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