If you are passionate to pursue your career in real estate business, you have two options. You can either choose to involve in wholesaling real estate or to acquire a license and become a realtor. According to the expert, Tom Krol from the Wholesaling Inc both the above-said assignments have their own paths in doing the real estate business. To know more about this exciting business opportunity reader can also browse the website seekingalpha.com/article/4136865-will-year-real-estate-stumbles and get enlightened.
To understand simply about the main difference between these two conflicting terms, you should know some basics. In the former type, one can act as a wholesaler and can serve as a middleman and has the authority to sign a contract with the prospective buyers. On the other hand, a licensed realtor is a professional who can buy or sell a real estate property on behalf of another person. This is the main difference between these two real estate professions.
When it comes to the wholesale real estate, wherein a wholesaler identifies the property which is priced below than the market price. Here, the seller authorizes the wholesaler will sign a contract with the prospective buyer. In this transaction, a wholesaler gets a markup price between the asking rate of the seller and the final price as fixed by the wholesaler. This wholesaling real estate business works well for the wholesalers who wish to make quick cash in the whole deal. For a seller, this arrangement eliminates the process of hiring a real estate agent and also gets the deal at a faster pace. However, this deal works well when the seller is willing to sell the property below the market price.
Doing a wholesale real estate business offers many benefits for the wholesaler. Besides making quick money, the wholesaling process is quite attractive. One need not get any license or qualified to do this wholesaling real estate activity. This deal offers a wholesaler more freedom in the whole operations, and one can work with flexible timings. More importantly, this task of doing this wholesale real estate business does not attract any statutory needs for the wholesaler. Since he is signing a contract with the seller, the selling price can be determined by the wholesalers, and the seller has no control except if there is any deviation from the contract term signed between both the seller and the wholesaler. Of course, there are few downsides to this sort of real estate business.
On the other hand, a realtor has a different role to play while practicing this profession of property dealing business. First of all, a realtor has to undergo a pre-license education before being certified by the appropriate authorities. This is a mandatory requirement for every realtor who has to work a designated real estate broker. More importantly, a realtor is legally authorized to represent both the seller as well as the buyer. Also, the realtors need to assist both the parties and do all the transactions that are legal and can be sued in the court of law if there are any deviations observed by the seller or buyer or even both.