Thanks for clarifying the question for me.
Here is what you added to the question:
What I am asking is can an agent find a propertty for his or her own investment negotiate a below market deal, and then Sell the the deal to an investor for a charge. This would br for personal investing purposes. Thanks...
Well yes, they can, but there are some rules about it.
A realtor must tell the parties involved that they hold a real estate license. They must also disclose what role they play in the transaction.
I am not sure what you mean when you by selling the deal for a charge.
An agent can buy or sell the property at whatever price the parties negotiate. The first buyer can sell the property to a second buyer as soon as he has closed on it. There is no minimum time that has to pass between the deals in some cases. A purchased financed with an FHA loan does have time limits imposed. (agreement of sale cannot be dated less than 90 days from the last purchase)
The agent could, with the permission of the seller, substitute another buyerâ€™s name in the contract that he had negotiated. Maybe somebody else can explain more of the rules and procedures that must be followed when a contract is assigned to another buyer.
You sometimes see listings that say the buyer cannot be written as "John Doe and assigns". That means that the person who writes the original contract cannot pass the agreement along to another party.
Another way that realtors often profit from buying and selling is to buy a home that they can get for a good price, then spruce it up and resell for a higher price. That is also perfectly legal and done quite often.
Still other agents will take over a home where the owner owes more to the bank than the property is currently worth. They then negotiate a sale with the bank and turn the house around to sell for a profit. This is one way that some profit from a â€œshort sale.â€ You may have seen the ads that say â€œwe buy any home for cashâ€ These cash buyers often use rent-to-own or lease purchase contracts when they resell.
These transactions are legal, but the Realtor/investor must be very careful that they offer â€œfull disclosureâ€ at every step.
NOW PLEASE, understand that I am not lawyer, and that this post is in my own words, with some of my own opinions. I will be curious to see what other answers will be offered here.
I am also curious to know what is behind your question. Are you thinking of becoming a realtor/investor, or have you had experience with one.
To me the important thing to know is that if someone offers to bail you out of a home that has not been selling on the open market, then you should expect that they will give you a wholesale price, often something on the order of 70 to 75% of true market value. Use the same caution when dealing with a builder who offers to take your home in trade so that you can buy his product.
Comments from others???