Wholesaling While One Is A Real Estate Agent
I'd like to hear from anyone who has experience with real estate agents (salespersons or brokers) who, as private investors (rather than as agents listing properties), endeavor to wholesale properties--experience either through knowing Realtors who've done (or attempted to do) so, or experience as a Realtor yourself.
I am an agent in Michigan, and as I study investing, with a view to entering it, I'm seeing possible problems and possible advantages.
Possible problems: Seller receives your disclosures: 1) that you're a realty agent, 2) that there is no agency relationship expressed or implied (as you are doing this for yourself), and 3) that you are doing this with the intent to resell and make an immediate profit. (These are what I was told, by a Ron LeGrand instructor, I'd have to disclose.)
Seller wonders why you're buying the house rather than listing it to sell it as the agent you are. Seller then figures---what? Does the seller not care, or does the seller figure, "Well, it must be worth more and you're going to turn around and take this 'more' for yourself rather than help me get it by putting it on the market"?
Optioning: Seller (FSBO) entertains your offer of option purchase, and with offer receives your disclosures (same three as above). Does the seller care, or does he wonder again why you would take an option rather than list the property?
Benefits: Access to the MLS for doing market value analyses. Listing your own held properties and covering your agency split faster. Know any others?
I'd really like to hear from any members who are or were real estate agents/brokers as to how your investing practice and results are/were effected by your being an agent. Thanks!
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