Wholesaling will be banned nationwide one day...

[Adam Macias]

Wholesaling houses has become a hot topic because some states are making new rules or even banning it. For anyone who is new, wholesaling is when you get a house under contract and then sell that contract to another buyer, usually an investor. The problem is some states say this looks too much like being a real estate agent without a license. Places like Illinois and Oklahoma have put strict limits, and others are starting to follow. Some require you to have a license, while others say you cannot advertise a house unless you own it. This makes it harder for wholesalers to do deals the old way. Before trying to wholesale in your state, it is smart to check the local real estate commission rules and maybe even talk with an attorney. Laws are changing fast, and what is fine in one place might not be allowed in another. I want to hear from others here, what states are you seeing changes in, and how are wholesalers adapting?

I remember when the Colorado state approved contract from DORA had assignability as the second clause of the contract. THE STATE contract approved and used by all real estate professionals had it. But that was at a time where also there wasn't even this idea of a wholesaling guru or double closings to hide how much you're earning.

I say all of this to say if you're a newbie in real estate and you're interested in wholesaling you should partner with someone and do away with wholesaling in general. Find an investor or two and have an agreement to act as their acquisitions manager. In other words, you help with the marketing, you help with the appointments, you help with the sales. Everything you do as a wholesaler anyway except you're saving someone time so they can work on the business, but you work in the business.

[Alan F.]

Quote from @Bill B.:

You can't see it going the other way? Every level of government is so greedy and desperate for every dollar they can squeeze out of the economy. You've certainly seen what they've done with the STR economy. Sure some banned it, but others just reached out to have their palm's greased. License fee, inspection fee, this tax, that tax, etc etc.

I could EASILY see the government say “in order to protect the people” you must pay us to take this class, and then pay us to get your license, and then pay us every year to keep it. Like a contractor’s license. They’d come in to protect us from the “Realtor’s monopoly” and just coincidently collect more money to spend on pet projects. Heck, maybe require all dels be done on a state authorized contract they either charge for or require your state issued number be printed on. 

 Shhh! Don't give CA government any ideas lol. The vet had to report to the city that my kids cat wasn't licensed, now it has a license. The (notorious) electrical utility now requires me to have a special license to dig trenches for underground conduit, it includes a behavioral test....so im nice to their workers. 2 months of portals, videos & testing + $500 annual fee.

Im not a fan of ban culture, someone always goes around it somehow. Most investors don't use licensed contractors anyway. Meh