Wholesaling in Ohio

9 Replies

Hello everyone! My name is Tanisha Collins and I am new to BP and to the wholesale scene! I would love to introduce myself to everyone! Hey! I live in Columbus, Ohio and I have been learning about wholesaling for about a month now. I went driving for dollars and have mailed out a few yellow letters. No response yet. Recently I have been hearing that here in Ohio you are not allowed to do wholesaling. This makes me sad because it's something I am really interested in pursuing. Any advice or tips will be greatly appreciated!  

In Ohio, the best option I've seen for non-licensed people is to do a double closing.  In essence you negotiate terms and price with a seller and then aggressively market for an end buyer. Once you feel you have a legit end buyer, you schedule to close on the property with a 2nd closing right behind it, where the end Buyer is taking title for a permanent basis.  If you do not have the cash to buy the home and close with cash, there are many hard money lenders out there with terms that are reasonable. So in essence, you close with your Buyer A and take title, even if only for hours. Then there is a 2nd closing, a day or two later where your end Buyer, Buyer B closes with you. Hard money lenders all have different terms. Typically if you provide them with an actual contract between you and the end buyer you can find many hard money lenders with reasonable terms. Do your due diligence though, on your "end buyer", as often times your fees/rate/terms are based on the end buyer performing in a certain amount of time. If that goes beyond the specified terms then be prepared for a very high interest rate! 

Thank you @Aimee Soward-Mounts! Is this the same as transnational funding?

Yes, hardmoney lenders will do transactional funding.  One good company here in Columbus is Autumn Wood Lenders, they do transactional lending. Also, you might want to come to the coree meetings (https://www.centralohioreia.com/). they have been having good seminars on wholesaling and rehabbing this summer and have some upcoming events that may benefit you.  

Transactional funding sounds like a great idea and all BUT......You have to have a real estate license to market a property for sale if you don't own it.

I would get licensed and get commissions. Much more money in it. Way more tools in your tool belt.

Originally posted by @Aimee Sowards-Mounts :

In Ohio, the best option I've seen for non-licensed people is to do a double closing.  In essence you negotiate terms and price with a seller and then aggressively market for an end buyer. Once you feel you have a legit end buyer, you schedule to close on the property with a 2nd closing right behind it, where the end Buyer is taking title for a permanent basis.  If you do not have the cash to buy the home and close with cash, there are many hard money lenders out there with terms that are reasonable. So in essence, you close with your Buyer A and take title, even if only for hours. Then there is a 2nd closing, a day or two later where your end Buyer, Buyer B closes with you. Hard money lenders all have different terms. Typically if you provide them with an actual contract between you and the end buyer you can find many hard money lenders with reasonable terms. Do your due diligence though, on your "end buyer", as often times your fees/rate/terms are based on the end buyer performing in a certain amount of time. If that goes beyond the specified terms then be prepared for a very high interest rate! 

Thanks for the advice.  So I close with my money, pay the closing costs and then sell to an end buyer the same day?  Sounds pretty simple.  Is there some way to get out of paying closing costs twice?

@David Bermanski , did you read the reply by @James Wise ? In Ohio, if you don't have the Title in your name, or an RE License, you do NOT get to "aggressively market for an end buyer"!

As for avoiding double fees when double closing, good luck with that!...

Do you have any connections with a title company that can do a double escrow or close?

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