Option Contracts in PA

2 Replies

Hello BP,

I am a new wholesaler in the Pittsburgh, Pa area (Greensburg). I have collected a good list of both potential sellers and buyers. As soon as I was about to make my first few calls, I read in another forum that wholesaling is illegal in PA. Is this true? If so are option contracts the loop hole around this to make a deal? 

@Sean Dean reach out to a good RE attorney well versed in these types of transactions. There are a good 1/2 dozen that I know of in the area who could help you. They will show you the way to keep out of any trouble and keep it all legitimate. There are hundreds of Wholesale deals done every year in this area and I know a lot of good attorneys have no worries in handling the closing. These are attorneys who are well respected in the industry and would not be involved in an illegal transaction. 

You need an assignable contract. 

There are a good number of lawyers in the area that can help you as Alex mentioned. 

Then you just need to be careful about how you market the lead, because if you market too aggressively or market like an agent would it could be construed as practicing real estate without a license. It's a fine line, but plenty of people do it and I don't know anyone that's been put behind bars or fined heavily yet.

You'll also just want to use a title company familiar with RE investing and wholesaling. A lot of the usual suspects don't understand it and will mess things up.

@Sean Dean