Wholesaling Rules of Engagement for Broker/Investors
I love Seattle. You guys keep talking about all this Snowboarding makes me wanna ride!
Virtual life!? Teach us! 🙂 (for another episode 🙂
Julie – Julie is an investor, and a broker as well. Being a broker/investor is a lifestyle! It is the best way to monetize your lifestyle.
On your team someone needs to get there Real Estate license, if you want to have all the tools in your tool belt possible! & you do right?
Today were going to talk about the rules of being a broker/investor.
nuggets are about to be thrown down! Better be her to pick em up 🙂
Can you be an investor, broker, and wholesaler?? Yes! but there are rules.
Wholesaler – Off market transactions, whole-tailing, etc.
#1 Tip– You must understand the rules that are outlined by your local MLS.
It is legal! But, you must disclose, disclose, disclose!
Do not fall in to the myth that says that people will not talk to you, because your a broker.
The value in being a wholesaler is YOU CAN PROVIDE OPTIONS to sellers, and open up doors for yourself to do wayyy more deals.
Big Whoop for the licensed investors!
Does my designated broker need to know i’m doing this? …..Yes, you do need to tell your designated broker.
Before you sign on to a brokerage, you need to find a brokerage that allows this kind of transaction!
“Honesty is the best policy” – Julie Clark. Truth!
- You need to consider that your personal transactions may not be covered by Errors & Omissions insurance.
- Rules differ from brokerage to brokerage.
- So who do I disclose to? You will disclose to everyone. When in doubt…over disclose!
You must tell sellers that your an investor & a broker. What I specialize in is providing options to sellers..since there is more than one way to sell a home!…hmmmm interesting? Providing more value to the market than anyone else makes you a very competitive broker. It’s secret sauce.
You can wholesale deals on your local MLS, in that case you use the MLS contract and make it assignable. You can then assign any contract you secure. There is no assignment language in the NWMLS purchase & sale agreements, so you need to add it when you use it. (differs state to state)
If I have an off market seller that’s going to run the contract by an attorney? She uses the NWMLS form to make it easy to read for the attorney, saving the seller money & time.
But you don’t need the pre printed standard NWMLS for every transaction.
- Have your attorney draft and review your off market contract! Do things right from the start, so you don’t have to look over your shoulder all the time!
- Things to consider on your contract – Who you represent (the buyer)
- Add your broker #, you have no one to hide from as long as your doing the right thing!
- Be very clear on your contracts!
- Add in the contract- You intend to make a profit.
Not even Buddy is your Attorney!
You need to research these things, speak to your attorney. Every state is different, be prudent, and do the right thing.
What happens if you buy a property off market?
Check out rule 2c. You need to report these deals.
In Seattle area there is a distressed homeowners act – Investors cannot deal with sellers in pre-forclosure, bankruptcy, or any kind of financial distress.
Can you wholesale a deal off the MLS? Yes! you can. But when you do this, you are not selling a property! You are selling a contract. Follow up, and do your own homework.
Challenges with wholesaling contracts on the MLS – Most agents don’t get it…
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Seattle Investors Club Thanks you for tuning in!