Wholesaling someone elses wholesale deal?

Question

I have access to many wholesale deals on a daily basis from various wholesalers. Is it possible to wholesale someone elses wholesale deal to another party??

Randy Thomason · Answer

Be VERY careful!  You cannot legally be marketing and selling properties you do not own.  You can market a contract if you are party to the contract. But if your name is not on it then you are acting as a realtor without a license.

Most wholesalers will tell you you can do it because they have been told by some guru you can do it.  But they are wrong.  In my state and most others it is a felony if you get caught.  Will you get caught?  Probably not.  Most people get caught when a deal goes bad and the seller files a complaint against the contract holder. Then it goes very bad!  tens of thousands in attorney fees for you , fines in the tens of thousands or possibly over 100,000. Because once the can or investigation opens the RE Commission looks at all your past work.  If you have done many deals then you get fined on each one.

And the kicker is that if you think bankruptcy will get you out of the financial mess, think again.  Criminal fines and judgments aren't dismissed by bankruptcy.

Is it worth it to take shortcuts for a few dollars?

James Green · Answer

@Martin Schriber, please contact the other wholesaler to come to an agreement. Else otherwise, if you by chance get a buyer that buys, you will not get paid because you are not involved in the deal.

David Bokman · Answer

It's called doing a JV deal and yes its possible but I would recommend that you talk to the other wholesaler FIRST, before sending out there deal to make sure it's ok.