Newbie Wholesaler in Milwaukee area
Hi guys, I'd like to consider myself a "creative real estate investor" especially since I have no prior experience in real estate, no significant amount of capital to investment directly into a real estate property, but I DO have an insatiable desire to invest in real estate. For a while now I had cracking my skull trying to figure out how I can get into the real estate world without being under some one else's thumb. I had been thinking of getting a conventional loan from a bank using my fairly good credit and the little money I do have as a down payment to purchase a fixer upper and than flipping it for a profit, but then I thought to myself, "How would I finance the repairs? Using my credit cards??" I decided that might be too risky for me at the moment so I continued to try to think "out of the box" to the best of my abilities, and upon doing some research I came across a real estate investing strategy known as "wholesaling". Once I came across that term and that idea I was just like "whaaaaaaaaaat?? Is this even legal??" So I kept doing research and the concept seems pretty straight forward, and from the looks of it, it IS legal as long as its done correctly but I still have my doubts.
My questions to YOU, the more experienced "creative real estate investor", is wholesaling indeed a legal and ethical practice in the state of Wisconsin??
I actually have a close friend (who's still in college) who owns two rental properties and manages them alongside his longtime girl friend who just happened to graduate from Marquette University with a Bachelors in Business and a whole bunch of other degrees, and they pitched an idea to me to start some sort of real estate business. My friend who's still in college is GREAT at marketing and networking and is about to finish his degree in cinematography and photography along with some more degrees he already has under his belt. As for myself, I dropped out of business school to pursue my dream to be a "business man" and now I currently co-own a growing commercial cleaning business (its really not my passion at ALL) which pays the bills, so I as well have a business background,but its just not the kind of business I want to be committed to full-time anymore.
All this week I have been working on a business plan to pitch the idea to my maybe future business partners, did a ton of research on how to wholesale, but I can't seem to find out the legality of this practice in Wisconsin especially with the whole "assignment of contract" or "double closing" methods.
Any help would be GREATLY appreciated.