is wholesaling in texas legal without license?

Question

I read the wholesaling is legal in Texas but what are the restriction. Can someone give me some advise? also how can I market deals as a wholesaler in social media? For example, is it legal placing the following statements:

Disclaimer: 1. We will be selling our equitable interest in the property shown on this post or email. 2. We do not have legal title for any of properties we display in our social media channels.

Luis..

Jonathan Greene · Answer

If you put any information on social media you are practicing real estate without a license. Texas is one of the most stringent states on agents as I said. I would talk to other wholesalers. Any wholesaler who says huge cash flow will only get D- buyers. Everyone knows it's not true.

Jonathan Greene · Answer

You can't market wholesale deals on social media. You can only send them via an email list with a disclaimer. Especially so in Texas because the rules for on-market advertising by agents is one of the most stringent in the country.

Vernon Watts · Answer

One last thing, you can join a group on Facebook, specifically for wholesalers (legal) and promote your business. By-the-way it's the largest wholesaler group on the network in my opinion.

Happy Hutting

Vernon Watts · Answer

Shalom Luis,

Jonathon is right in his interpretation of the law in Texas. No need to debate the wholesaler's vs real estate agent's sales consideration. I am a real estate wholesaler operating for the past 4 years in the DFW Metroplex and I found that it's better to keep things simple, and not, deal with real estate agents who don't want you biting off (what they view as) their profits. Advertise as you please, on any venue that will accept your line of work and be honest about who you are and how you can help homeowners, and people that don't want to deal with real estate fees. That's why we exist. Help property owners, not to take advantage of or hurt the property sales process. Market your wholesale business as anyone would market a business concept and play by the Texas law and rules. Anything else, you'll be on your own.

Jonathan Greene · Answer

That response is very fair. I think you are best served to get the best advice and that is what will make your business work much better than the ones who don't care about the regulations. So, good for you on that, I think that's the best path to success in a field that is generally frowned upon. Good luck!

Luis Herna · Answer

Jonathan, I am not asking for legal advise, I said advise, without the word legal.  and NO, I am not part of the 99 percent of bad wholesalers who will be out of business as you implied because I have a huge network of direct buyers. I run two big groups on fb and we have been bombarded by big pocket end buyers so closing big commercial  deals 10M+ is not the challenge here.  I just want to do things within the law and if a RE license is required then I can certainly get it within few weeks IF NEEDED.  I was hopping to find a very knowledgeable attorney who can tell me exactly exactly what to do or not and be on the safe side of the law.  thank you for your time..

Jonathan Greene · Answer

If the group is a private group, it is treated like a private email I believe. And yes, the entire argument around wholesaling everywhere is that most laws that are being pushed against it (In the states where they are) are because of practicing real estate sales without a license.

I am an attorney, but I don't give legal advice on here and never said I was giving legal advice so not sure where you came up with that, but your attitude suggests you will be part of the 99 percent of bad wholesalers who are out of business quicker than an eye blink.

You are asking a lot of questions, which is good, but you should be asking them of local wholesalers in your area, in person, so you can see what they do versus what everyone on the Internet tells you. My advice is good advice, but it's common that most people new to wholesaling still think they are going to make a mil in a year and only want to hear the good stuff. Good luck.

Luis Herna · Answer

Jonathan, the above was an example only for a post. If what you say above is true then 1M people of fb need a license. by the way,  I thought you were an attorney. With all my respect, most real estate agents have no clue what the laws are. Have you read the TREC rules? if you can tell me to any of the rule that states what you say above please please let me know..

is wholesaling in texas legal without license?

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