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283
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177
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Adam Macias
  • Real Estate Consultant
  • Fort Collins, CO
177
Votes |
283
Posts

This is operating business without a real estate license and you should stop

Adam Macias
  • Real Estate Consultant
  • Fort Collins, CO
Posted

Because I've wholesaled houses before, I get a lot of people who email or call me off my website wanting to add me to their "buyer list".

The fact that they just want to add me to an email list is already sus. Don't you want to know who I am? If I actually BUY deals?

I've only worked with 5-10 buyers the past 10 years. That's it. That's all I've needed at any given year because these are investors I actually know and have built a relationship with and all I got to do is shop for them in finding good deals and I'll be good.

There's one major, major, major issue with people just adding a bunch of wholesalers to a massive list to blast deals to...

You're operating without a license
. Because you're not the principle in the contract but you're trying to sell someone else's contract for a fee, which is representing that client and interfering with someone else's business.

This mainly harms the sellers because why would someone need to make it this difficult to close the deal to begin with?

Usually, this is done by people new to the business. They don't know how to run numbers, they have no relationships, they have no business acumen.

It's a violation of state licensing laws to advertise a house for sale under the guise that it's okay because "someone else has it under contract". It's the whole reason you have to get licensed if you're not a party in the contract, to legally "list" someone's house for sale to the public.

If you're emailing 5,000 people that a contract is for sale, that's no different than putting your house on the MLS for sale.

See my issue with this?

Who gets hurt the most is the homeowner. Imagine all of this happening when you're thinking you're just dealing with one party, the investor you went under contract with.

Look, I'm not a real estate attorney but I've talked with plenty attorneys on this. It's bad news and bad for real estate even just on a ethics and moral basis.

And you have gurus teaching this in mass. I have plenty of names to throw out who are big YouTubers and I comment on their videos all the time saying they are teaching people to operate without a license.

PLEASE, stop doing this if you're a wholesaler or investors trying to build a "buyers list."

Get back to the basic, get more education, and for goodness sake operate business properly.

The gurus teaching all the weird ways of doing real estate don't make money doing what they teach, they make all their money selling you a THEORY.

  • Adam Macias