Realtor or Wholesaler... what's the difference?

Wholesalers, did you ever have a craigslist add deleted by a Real Estate Agent and wonder why? Agents did you delete the post? This is because there is much confusion about the position of the wholesaler. Many Agents feel that a Wholesaler is a person selling houses without a license so they get offended. This is the misconception that I wish to clarify with this post.

Since the recent market drop there have been allot of new wholesalers jumping on the bandwagon to quick cash. This has allot of people questioning the position of the wholesaler and many Real Estate Agents putting their guard up.

Real Estate Agents have a license to sell real estate because according to the law you need a license to sell real estate. Wholesalers do not need a license because they are not selling real estate they are selling their rights to a certain real estate property. Because contract rights are considered property, they can be transferred to others just like a piece of property such as a home or car.

A Wholesaler finds a property, negotiates the price and then locks it up with an "Agreement to Purchase"that property. Since many Wholesalers are also Real Estate Investors they will either choose to go through with the purchase and either hold or flip the property or they will sell their rights to the property to another Investor for a profit.

Once you have a property locked up, all rights of the contract is considered "property" and therefore under your control. Therefore you reserve the right to do what you want with it. The Wholesaler who has a property listed for sale is not selling the property but their rights to the property that they have already locked up. Once you have the right to buy you have the right to sell.

Written by Carol Stinson. All rights reserved.

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