Scared to get sued with wholesaling as a realtor

Member since 2020 · 3 posts · 1 vote

I am a realtor in Chicago and have been doing research on wholesaling. My current brokerage isnt wholesale friendly but in IL you can still wholesale 1 property in 12 month as an individual.

I plan to do this since I do not want to leave my current brokerage just yet, but I am afraid of getting sued by the seller or messing up something on the legal side.

Can any one provide clairty?

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Jonathan KlemmBusiness Member

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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes

Hey @Andrea V. - We could definitely help we are a Chicago investor-focused brokerage that does wholesaling as well. I'd say find someone who is experienced and can provide the right training and contracts. Getting started can be tough but working with someone who knows the ropes makes it quite a bit easier.

Happy to connect and talk more about your plan and how we can help!

[email protected]

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Jim Pellerin
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
4y
Quote from @Andrea V.:

I am a realtor in Chicago and have been doing research on wholesaling. My current brokerage isnt wholesale friendly but in IL you can still wholesale 1 property in 12 month as an individual.
I plan to do this since I do not want to leave my current brokerage just yet, but I am afraid of getting sued by the seller or messing up something on the legal side.
Can any one provide clairty?

If you want to wholesale in Chicago and your brokerage wont allow it, find another brokerage to hang your hat at. I wouldn't screw around with wholesaling in Chicago unless I was a Realtor.
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Robb Krautbauer
Real Estate Consultant · Rio Rancho, NM · Member since 2012 · 11 posts · 13 votes
4y
Find another brokerage that is investor friendly, you need to become an agent investor sooner than later!
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Andrea V.
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Member since 2020 · 3 posts · 1 vote
4y
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Andrea V.:

Why would you wholesale as a REALTOR?
Wholesaling is the process of finding an off-market deal, locking it into a contract for a particular price, then selling that contract to another buyer for a higher price so you make a profit.
If you find the off-market deal, just list it for sale and earn the commission!
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Jim Pellerin
Real Estate Consultant · USA · Member since 2014 · 1k+ posts · 751 votes
4y
Quote from @Nathan Gesner:

Quote from @Andrea V.:

Why would you wholesale as a REALTOR?
Wholesaling is the process of finding an off-market deal, locking it into a contract for a particular price, then selling that contract to another buyer for a higher price so you make a profit.
If you find the off-market deal, just list it for sale and earn the commission!
Wholesaling is the process of finding disounted properties and putting them under contract. I know people who just do on-market deals and some of them are realtors.
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Jonathan KlemmBusiness Member
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Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
4y
Hey @Andrea V. - We could definitely help we are a Chicago investor-focused brokerage that does wholesaling as well. I'd say find someone who is experienced and can provide the right training and contracts. Getting started can be tough but working with someone who knows the ropes makes it quite a bit easier.
Happy to connect and talk more about your plan and how we can help!
[email protected]
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Crystal SmithPro Member
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Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
4y
Quote from @Andrea V.:

I am a realtor in Chicago and have been doing research on wholesaling. My current brokerage isnt wholesale friendly but in IL you can still wholesale 1 property in 12 month as an individual.
I plan to do this since I do not want to leave my current brokerage just yet, but I am afraid of getting sued by the seller or messing up something on the legal side.
Can any one provide clairty?

Regarding the Illinois law. If you are unlicensed you can do one "assignment" per year. Assignment meaning getting a property under control and assigning that contract to another buyer for a profit. That is how the law defines wholesaling in Illinois. Assignments are only one way of wholesaling though. But since you are licensed there's no limit to how many assignments you're allowed to do.

Regarding your brokerage- I guess your question is do you have to run your wholesale deals through the brokerage or can you do it on your own without the brokerage involved. We typically do not run deals that we control through our brokerage. Deals we control meaning properties we own or contracts we control. If we are facilitating an off market deal between two parties where we do not own the property or control the contract, we will run that through the brokerage.

312-681-7487
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Andrea V.
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Member since 2020 · 3 posts · 1 vote
4y
Quote from @Crystal Smith:

Quote from @Andrea V.:

I am a realtor in Chicago and have been doing research on wholesaling. My current brokerage isnt wholesale friendly but in IL you can still wholesale 1 property in 12 month as an individual.
I plan to do this since I do not want to leave my current brokerage just yet, but I am afraid of getting sued by the seller or messing up something on the legal side.
Can any one provide clairty?

Regarding the Illinois law. If you are unlicensed you can do one "assignment" per year. Assignment meaning getting a property under control and assigning that contract to another buyer for a profit. That is how the law defines wholesaling in Illinois. Assignments are only one way of wholesaling though. But since you are licensed there's no limit to how many assignments you're allowed to do.

Regarding your brokerage- I guess your question is do you have to run your wholesale deals through the brokerage or can you do it on your own without the brokerage involved. We typically do not run deals that we control through our brokerage. Deals we control meaning properties we own or contracts we control. If we are facilitating an off market deal between two parties where we do not own the property or control the contract, we will run that through the brokerage.

Thank you! This cleared up a lot of my confusion.
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