WHolesalling with no money down!
I am interested in wholesaling will adding the option of me finding a buyer. I had heard that if I don't put money down then I have no financial interest in the property. Therefore I am required to have a real estate liscense to sell the property, right?
Well I do have a Real Estate liscense in Florida and am very interested in buying wholesale on my own. But my question is would I have to go through my broker and have my comission be the difference of the cost - selling price?? Or could I do it legally without My Broker???
I hope this makes sense. IF anyone could help me please do.
Dan,
These are questions to take up with your broker. You are your broker's employee and your sales activities may jeopardize your broker's license.
Be sure you have a clear understanding about what your commission split is between you and your broker when you are a principle in the deal and when you are just acting as a sales agent. Regardless, as a condition of your sales license, your local real estate commission may require your broker to keep a copy of all your completed contracts on file for a specified period of time -- even when you are a principle in the deal.
Talk to your broker to clarify your responsibilities and your commission schedule.
Well, if that is true then must I have a real estate license? I don't have a license and I don't plan to get one. I just want to invest in real estate. That is, I only want to purchase property and then flip it immediately. Do I need a license for that? I want to sell to investors mainly.
Thanks Dave,
I had just read about "Subject to's" I believe that I could use this plan to acquire deals at first until I have the cash flow for wholesaling.
I know that olmost any broker would want the commision. I am willing to split the commission if agents help me sell but when the commission is 50% of the selling price I think my 70-30 split of the 50-50 brokers split is too high. I will bring it up with my Broker though.
Thanks for your help David.
Dona,
You are correct. You are most likely breaching a state law by selling properties without having a real Estate liscense. You will be breaking a law because you have no finacial interest in the property. A nice way to get around that would be to check out this
http://64.4.16.250/cgi-bin/linkrd?_lang=EN&lah=3f0604f4ee6e58088743f5adf222187a&lat=1038112636&hm___action=http%3a%2f%2fwww%2ethecreativeinvestor%2ecom%2fViewTopic692%2d19%2ehtml
Dan
I have no answer to the question of brokers and agents, but I can solve the problem of a legal wholesale.
1. put a few dollars on the contract to secure your purchase and sales agreement legally (or option agreement whichever you choose to use)
2. don't buy or sell the home at all use an assignment clause in your purchase and sale agreement and sign your name with the phrase "and or asssigns" and you can simply hand off the sale to your buyer and charge him an assignment fee. this avoids the necessity to pay double escrow fees because you never actually bought or sold lthe property, you sold the agreement. the only problem with doing this is that your buyer knows exactly what you are paying for the property and knows exactly how much money you are making. this can sometimes trigger another investors greed glands.
Thank you very much for you input,
I guess to learn how to do that in the state of Florida I should Probably contatct a RE Attorney who is experienced.
Thanks again
Dan
Dona,
Not sure that Dan really understood your question.
No, you do not need a real estate license to buy or sell your own property. As long as you are a principle in the deal, no license required.
Dave & Dona,
Dave you are abslolutly correct.
"No, you do not need a real estate license to buy or sell your own property."
But the key phrase is "your own property" When I responded to Dona's post I was refering to the deal she had posted on another forum. Where she was talking about finding the buyer for the seller. Which would be brokering without a liscense. So I gave her a link to the "Subject to" information.
Dona,
You can definatly wholesale houses without a liscense, but you have to make sure that before you sell you have the deed in your or your companies name. Otherwise you could be culpable of brokering without a liscense.
Sorry for the confusion,
Dan