Hey guys, this is LeAnna. I am a college student in Pensacola Florida at Pensacola Christian College. I am brand new and don't even have one deal under my belt. I have talked to a real estate agent who said that wholesaling is my best way to go for my first deal since it requires no money down. I have noticed a couple houses for sale on facebook. I don't know if facebook would be ok to start looking on or are there other places I can look. Houses for sale by owner are harder to find. I have looked through a couple fsbo websites and only found two really expensive houses for sale. What would you say to a newbie who hasn't even started? I want to graduate debt free and want to have done at least a couple deals before I graduate. Is this unrealistic? How can I be sure I am doing everything right??
@John Thedford This is a COMMUNITY for real estate INVESTORS. If you can't conduct yourself as one in a community and your primary interested is curtailing real estate investing, perhaps you could find another place to air your grievances.
@LeAnna Davis. I would not recommend wholesaling. Most wholesalers spend a ton of time or money trying to do something and never do anything. Finish school, and get a stable job, much better return on your time
Check out PIG - Professional Investors Guild in Pensacola. They meet once a month, tomorrow is the night for November, and will give you a community of local investors as a resource. Caleb is right that it takes a lot of time and/or money to get started as a wholesaler but it is a very popular way to get started because if you have one but not the other you can still get involved in RE. You might try to get your feet wet by working for a local wholesaler or investor to learn the business models and local market. I am a buy and hold investor here in Pensacola and a full time agent/property manager and I love our local market for investing. Just be sure to build a foundation of knowledge and learn the market first.
Put yourself out there! If you have goals of wholesaling and you have time in your schedule to make multiple phone calls to FSBO properties and also to buyers then go for it.
Wholesaling does require you to put in the time. But so does everything else we want. Me personally I’ve never search for deals on FB or other websites. I drive for dollars, mailings and door knocking. If you haven’t already, I recommend a book, “If You Can’t Wholesale After This, I’ve got nothing for you. It’s a easy read and gives steps on wholesaling. But yes, you have to put in the work. Good luck in school and your endeavors..
Whoah hey there! I'm not trying to do anything illegal. Anyone can legally buy a house and sell a house. There is also nothing wrong with putting a house under contract with "power to assign" in it as long as the seller knows you are. Wholesaling does not require a license that I saw. I haven't even advertised a house yet?? How can that be illegal?
And to the others- I really want to get involved in real estate before I finish college. If for no other reason than so many have told me I can't. (I also love it- reading about it, looking at houses, meeting new people, etc.)
Whoah hey there! I'm not trying to do anything illegal. Anyone can legally buy a house and sell a house. There is also nothing wrong with putting a house under contract with "power to assign" in it as long as the seller knows you are. Wholesaling does not require a license that I saw. I haven't even advertised a house yet?? How can that be illegal?
And to the others- I really want to get involved in real estate before I finish college. If for no other reason than so many have told me I can't. (I also love it- reading about it, looking at houses, meeting new people, etc.)
These people called themselves "wholesalers" but acted without knowing the laws.
@LeAnna Davis Hello an congrats on taking the first step. I think you should look everywhere, not only Facebook for viable properties. You just never know who is looking for a good deal. I was reading another question on BP about wholesaling and he suggested that we look here:
For sale by owner
Craig's List ads
For rent ads - if a landlord has a vacant property, maybe they are ready to sell.
Pre-foreclosure
Code violations
Owners behind in water or tax bills
Rent court
Vacant and or boarded up houses
Estates
Direct mail to any of the above, to absentee, or out of state owners
Non arm's length transactions
nominal transfers
Bandit signs
"we buy houses" ads
Networking
Real estate clubs
Auctions
I have come across a few other sites that might be of interest to you. FSBO, HomesByOwner.com, Propertyshark, and of course Craigslist. Oh, and another thing, it is not illegal to list a house you don't own if you and the seller have a signed agreement for you to do so. Just make sure all of your contracts are in order. Ok. Good luck with everything an keep us posted!
@LeAnna Davis Hello an congrats on taking the first step. I think you should look everywhere, not only Facebook for viable properties. You just never know who is looking for a good deal. I was reading another question on BP about wholesaling and he suggested that we look here:
For sale by owner
Craig's List ads
For rent ads - if a landlord has a vacant property, maybe they are ready to sell.
Pre-foreclosure
Code violations
Owners behind in water or tax bills
Rent court
Vacant and or boarded up houses
Estates
Direct mail to any of the above, to absentee, or out of state owners
Non arm's length transactions
nominal transfers
Bandit signs
"we buy houses" ads
Networking
Real estate clubs
Auctions
I have come across a few other sites that might be of interest to you. FSBO, HomesByOwner.com, Propertyshark, and of course Craigslist. Oh, and another thing, it is not illegal to list a house you don't own if you and the seller have a signed agreement for you to do so. Just make sure all of your contracts are in order. Ok. Good luck with everything an keep us posted!
You are giving BAD information. A seller cannot sign an agreement giving someone permission to violate state laws. That is in essence a defacto listing without being licensed. Violation of 475.42 and 475.43 just the same as i cannot give someone permission to rob a bank. Still illegal.
Hello, If wholesaling is what you want to do......DO IT.....Go to the Local meetups.....network on here....and in fb groups........drive for dollars.....put the time in and remain humble and steadfast and you will make progress.
Contact a real estate attorney and ask what your options are for listing properties as a wholesaler in FL. I am pretty sure there are thriving wholesalers in Florida, that list houses that they don't TECHNICALLY own. If that were the case then no wholesaler could thrive anywhere.
@John Thedford you are not an attorney, and as I said in my post, I am pretty sure there is a way around that. You are trying to discourage her for no real reason, and I don't know why. It is not IMPOSSIBLE to become a thriving wholesaler in FL. I guess telling her to contact an attorney is bad advice. I don't think so.
Contact a real estate attorney and ask what your options are for listing properties as a wholesaler in FL. I am pretty sure there are thriving wholesalers in Florida, that list houses that they don't TECHNICALLY own. If that were the case then no wholesaler could thrive anywhere.
They get shut down and a cease and desist like these guys did. The only ones that last without legal issues are licensees or people that buy and resell. Listing properties for another is a LICENSED activity...not meant for outlaws and wannabees.
@John Thedford you are not an attorney, and as I said in my post, I am pretty sure there is a way around that. You are trying to discourage her for no real reason, and I don't know why. It is not IMPOSSIBLE to become a thriving wholesaler in FL. I guess telling her to contact an attorney is bad advice. I don't think so.
You are giving BAD advice. The laws are clear if you care to read them. 475.42 and 475.43. I have turned in dozens that have gotten a cease and desist because they believe they are above the law. GET AN EDUCATION if you intend to give advice.
Again you are not an attorney. As I said before I am pretty sure that there are successful wholesalers in FL. She just has to find out the loopholes. She never even mentioned listing any properties so I don't know where you are getting that from. I gave her a list of places to look for deals, that is not bad information. Again, I don't know why you are trying to discourage her, but becoming a thriving wholesaler in FL is possible.
LICENSED ACTIVITIES INCLUDE: A BAR SALE ADVERTISING BUYING AUCTIONING RENTING SELLING APPRAISING LEASING EXCHANGING for another....these are activities that require a license.
Again you are not an attorney. As I said before I am pretty sure that there are successful wholesalers in FL. She just has to find out the loopholes. She never even mentioned listing any properties so I don't know where you are getting that from. I gave her a list of places to look for deals, that is not bad information. Again, I don't know why you are trying to discourage her, but becoming a thriving wholesaler in FL is possible.
Yes one can become a thriving wholesaler IF they are LICENSED or own the property. There is no other way around the law..or loophole as you claim. Maybe you can explalain why the people I listed above got a cease a desisit? I CAN. They were advertising properties they did NOT own...and do NOT have a license. If she follows your advice she likely will end up with a cease and desist as the others did. This is why the outlaw wholesalers hide in the shadows, put little contact info in their ad, and try to hide their identities.
Anyway, as I was saying, contact an attorney that can tell you the law that wholesaling adheres to and go from there. I am pretty sure you can make some deals, you just have to figure out how to approach it. Good luck with your education and business.
I think a lot of the grey area comes in getting an assignable purchase agreement without having the means or intention to actually close. Some people who wholesale prefer to get an assignable Option to Purchase, which I believe represents equitable interest, and doesn't leave the homeowner confused when they get a call from another investor (or buyer) that you sold the option to. You could also give the homeowner an Option Consideration of, say, $100. If the option expires, they may be far more willing to renegotiate. All in all, it just looks and feels a lot less shady. Just my 2 cents.
@John Thedford Whatever, as I said I am pretty sure an attorney can help her with that. I would love to know where she mentioned that she was listing a property. So you know all of the laws that adhere to wholesaling? No, you don't.
The following quote is right from BP's forum.
I've got lots of friends successfully wholesaling here; none of them are in jail! No cops have come knocking on MY doors as well!
There are some states where wholesaling is "illegal", such as Ohio, but Florida is not one of them.
As far as places like Ohio are concerned, the way I understand it, they don't want you to "assign" the contract. However, there's nothing stopping someone from double closing, where they actually buy the property, even if only for 5 minutes, then turn around and sell it to an investor.
But here in Florida you're cool.
You might get harassed for bandit signs, but that's about it.
@John Thedford Whatever, as I said I am pretty sure an attorney can help her with that. I would love to know where she mentioned that she was listing a property. So you know all of the laws that adhere to wholesaling? No, you don't.
The following quote is right from BP's forum.
I've got lots of friends successfully wholesaling here; none of them are in jail! No cops have come knocking on MY doors as well!
There are some states where wholesaling is "illegal", such as Ohio, but Florida is not one of them.
As far as places like Ohio are concerned, the way I understand it, they don't want you to "assign" the contract. However, there's nothing stopping someone from double closing, where they actually buy the property, even if only for 5 minutes, then turn around and sell it to an investor.
But here in Florida you're cool.
You might get harassed for bandit signs, but that's about it.
Some are in jail..and others have cease and desist orders which you prefer not to address:) The fact they haven't been caught yet doesn't make it LEGAL!
You are just trying to discourage her. You are throwing all of these random comments out there when you are not an attorney, and cannot give legal advice. Just because a wholesaler is not licensed does not mean that they are shady. Let's just clarify that.
Second, she never mentioned listing a property. She asked whether she should look for properties on Facebook, and I answered that question. So mentioning cease and desist orders and going to jail is not even necessary.
I am pretty sure you do not know all of the circumstances behind them getting arrested. Moreover, I also know that all of their crimes were not disclosed because it is an ongoing case, making it illegal for the details to be put in the public record, so the complete reasoning for them having to 'cease and desist' are not disclosed.