| Not quite: Real estate agents are not stock brokers, and their buying or selling of a property does not affect the value of the a company for other stockholders or manipulate the market to give a false idea of the worth of a company, which is what insider trading laws is designed to curtail.
Yep, they have first shot at properties. No doubt about it. That's why a lot of investors choose to get their license, to be able to plug into the network. But keep in mind that a LOT of "flips" are never on MLS in the first place, as they are immient foreclosures, abandoned properties, etc. Very few properties get listed on MLS waaay under value, if an agent has been doing their homework on comparables, etc. Also, an investor would be wise to make friends with a reputable agent who CAN be on the lookout for property that meets their client's criteria. Many, many agents don't have the desire or ability to make a flip work -- they'd much rather pocket the commission on several houses for the same client!
The only time it gets ethically shady is if an agent representing a client suddenly decides to buy that client's property. As it is impossible for the agent to be unbiased in such a transaction, an ethical agent would refer their client to another listing agent, an agent that will look out for the client's best interests.  |