Do you have to have a real estate license to legally sell a property that does not belong to you? Is it possible to contract with a owner for a price showing you as the buyer? Then find a buyer for a higher price. Any opinions would be appreciated.
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
19y
A real estate license is required to buy or sell a property that you DO NOT have an equitable interest in. That interest could be a contractual interest or could be actual title to the property.
Not only is it possible to do what you described, some of us make a very nice living doing it. :D The forum has some great info on doing just that.
Residential Real Estate Agent · Moriches, NY · Member since 2008 · 635 posts · 9 votes
19y
Peyton,
the basics of what you described include YOU or your company actually having a contractual agreement to BUY the property for X. But you or your company purchase the property "as assignor".
you or your company, then have the right to find another buyer who, upon closing, pays X for the property and pays you a fee for having contracted the property and "assign" them as buyer.
"wholesalers" - who implement this investment strategy use the terminology, "We have contracted to purchase this property...so it's a good deal, or we wouldn't have contracted to buy it in the first place..." to comfort the actual buyer who will be taking title to the property. basically, you as the "wholesaler" are putting your money where your mouth is, but you're reeeeaaalllllyyyy want to find someone else to actually buy the property. you just want somone to pay you for the contract and the discounted price you obtained.
in a nutshell, that is the basics of the process.
consult a rei attorney for details and make sure where ever you implement this strategy that is is legal in the respective state.