Fines/Penalties for Brokering Without a License
Specialist · PA · Member since 2018 · 85 posts · 122 votes
Fines/Penalties for Brokering Without a License
Most Popular Reply
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
7yOriginally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
The ole' it's illegal to ride a horse down the street argument. That's what you're going with huh?
40 Replies
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
I am sure @John Thedford has some info on fines levied in Florida that he'd be happy to share.
- Specialist · PA · Member since 2018 · 85 posts · 122 votes7y
@James Wise Exactly what I was looking for! Thanks! (Only 49 states to go.....)
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Alan Johnson:
@James Wise Exactly what I was looking for! Thanks! (Only 49 states to go.....)
@Jay Hinrichs You've probably got some info on at least a couple states?
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
@James Wise Exactly what I was looking for! Thanks! (Only 49 states to go.....)
@Jay Hinrichs You've probably got some info a at least a couple states?
Oregon is 5k per transaction..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
@James Wise Exactly what I was looking for! Thanks! (Only 49 states to go.....)
@Jay Hinrichs You've probably got some info on at least a couple states?
also see below directly from the state of Oregon regulator regarding wholesaling in Oregon
530 Center Street NE, Suite 100, Salem, OR 97301
State of Oregon - Real Estate Agency
Frances Hlawatsch | Financial Investigator
Best regards,
Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.
The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction. Addressing the problems is like trying to put out small individual fires in a forest that is burning. The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.
Thank you for getting back to me. The advertising copy you attached to your email came out perfectly and will be very helpful. Thanks!
Hello Jay,
Like the OP I got tired of is this legal or not or what have you and my conclusion is its state specific I think the way wholesaling is taught with websites buyers list blasting out marketing like the guy above did.. its not legal in any state.. but its depends on if the state wants to enforce it.. and I think most states are going to be like Oregon its complaint driven.. but once they get one they have to investigate and come up with a ruling. I know this case that I sent in to get clarification on the subject and in subsequent personal meetings with the investigator as they wanted more detail how folks were doing these transactions.. its clearly not legal to mimic a real estate sale/broker in your efforts to wholesale properties.. which I reality most are not wholesaling they are broker/assigning. its their sole scheme to not close and make middle man fees a TRUE wholesaler is someone like me who buys at auctions courthouse steps off market.. Close own it ( for more than an hour.. then retail it.. but that's not whats being taught or the ( I have no money I am going to wholesale crowd ) its not what they do.
I have other clients of mine that have gotten slammed in Mississippi and of course a few in Oregon who now partner with me as they got cease and desists .. its much like getting a drunk driving here in Oregon about 10k in legal fee's to fight and then the fines that could be massive are usually widdled way down.. and you swear to never do it again.. its a repeat offender that is really going to get hammered.
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes7y
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
The ole' it's illegal to ride a horse down the street argument. That's what you're going with huh?
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
Mike, when i had my interview with the state of Oregon regulator.. they don't buy the equitable interest theory.. if the business model is to habitually to tie up contracts with no ability or intention to close. to advertise the homes on a website blast e mails etc exactly how a broker would.. same with double closes their stance is your still advertising a home you dont own.. so for this state its either get a license or close on them..
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Alan if your worried about this.. simply contact your DRE regulator and ask how you submit your proposed business plan with your proposed marketing etc.. and ask them if what your planning to do is a licensed activity. they will respond in writing if they bless your plan then off you go.. other wise this is state specific and as you know wildly controversial.
- Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes7y
Certain wholesalers are a drag on the community. Mostly because of unprofessional behavior and rampant misrepresentation of the properties. A good percentage do not stay within the legal lane, and are technically practicing brokerage.
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Florida statute 475.42. It is a third degree felony to practice real estate without a license in Florida.
- Specialist · PA · Member since 2018 · 85 posts · 122 votes7y
@Jay Hinrichs Thanks for your input!
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
Mike, when i had my interview with the state of Oregon regulator.. they don't buy the equitable interest theory.. if the business model is to habitually to tie up contracts with no ability or intention to close. to advertise the homes on a website blast e mails etc exactly how a broker would.. same with double closes their stance is your still advertising a home you dont own.. so for this state its either get a license or close on them..
Good to know about Oregon. Thanks.
Arizona has no such problem and I am sure the enforcement varies by jurisdiction. Personally I think it is more of an integrity issue. If someone hasn't told the seller that they are wholesaling the property they should be slapped hard. It isn't an honest way to do business.
- Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes7y
Originally posted by @James Wise:
Originally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
The ole' it's illegal to ride a horse down the street argument. That's what you're going with huh?
Yeah, it's the one that works everytime. There's no arguing it. ;-)
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Account Closed:
Originally posted by @James Wise:
Originally posted by @Alan Johnson:
One risk of wholesaling that is often mentioned is that it could be considered brokering real estate without a license. Is anyone aware of what the fines and penalties for brokering without a license might actually be by state, and/or provide me with links that could address this question?
Note:
- Please do not respond with opinions about the legality of wholesaling; there are many other threads that seem to endlessly discuss this.
- Also, please do not attach a link to a particular state's 5,000+ page website that contains all of the real estate statutes. I've already been there.... but I would appreciate a direct link that is targeted to this question that you may have picked up during, for example, your real estate license education and training.
Thanks for any assistance you can provide!
Here are some fine summaries for those engaging in unlicensed activity in Ohio. Fines as high as $1.5 Million.
(Click here or on the photo to link to the Ohio Division of Real Estate's full report)
@James Wise
Those were from 7 years ago. Ancient history. Do you have anything more current?
It used to be illegal to drive a car down the street in Ohio (1903) now it's illegal to ride a horse down the street.
If it isn't being enforced in today's climate, what's the big deal?
Let's be clear: There is a big difference between
1) Representing that you own a property while not having ownership or equitable interest in it (which is an unlawful & punishable act) (This is very Bad)
2) Representing that you have a validly signed contract and you are assigning the contract, which is legal. If indeed you do have a validly signed contract. (This is Good)
People confuse the two and I agree that trying to sell something you don't own or have equitable interest in, will cause a world of hurt to the smuck who gets involved in wholesaling and does the first example.
Mike, when i had my interview with the state of Oregon regulator.. they don't buy the equitable interest theory.. if the business model is to habitually to tie up contracts with no ability or intention to close. to advertise the homes on a website blast e mails etc exactly how a broker would.. same with double closes their stance is your still advertising a home you dont own.. so for this state its either get a license or close on them..
It's fairly simple. If it quacks like a duck.....
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes7y
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
District Invest Group545 Reviews - Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @Russell Brazil:
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
Absolutely. Where anyone ever got the idea that putting a 30 day limit on trying to find a buyer from craigslist ads was a better plan than doing the same thing in addition to incentivising another 5,000+ agents on the MLS to also find you a buyer is beyond me.
Who is the madman that thought that was a better plan? Who???
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @James Wise:
Originally posted by @Russell Brazil:
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
Absolutely. Where anyone ever got the idea that putting a 30 day limit on trying to find a buyer from craigslist ads was a better plan than doing the same thing in addition to incentivising another 5,000+ agents on the MLS to also find you a buyer is beyond me.
Who is the madman that thought that was a better plan? Who???
Unlicensed broker propaganda is that they have BUYERS. As you pointed out, they don't have a sales force of THOUSANDS of agents to close deals. Our listings propagate out to over 800 websites. No unlicensed broker can match that. This doesn't take into account most of these operators are FRAUDS AND SCAMMERS with no money to close. Where are the unlicensed broker cheerleaders on this thread? Just sayin......
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Russell Brazil:
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
Absolutely. Where anyone ever got the idea that putting a 30 day limit on trying to find a buyer from craigslist ads was a better plan than doing the same thing in addition to incentivising another 5,000+ agents on the MLS to also find you a buyer is beyond me.
Who is the madman that thought that was a better plan? Who???
Unlicensed broker propaganda is that they have BUYERS. As you pointed out, they don't have a sales force of THOUSANDS of agents to close deals. Our listings propagate out to over 800 websites. No unlicensed broker can match that. This doesn't take into account most of these operators are FRAUDS AND SCAMMERS with no money to close. Where are the unlicensed broker cheerleaders on this thread? Just sayin......
I'm tellin' ya the tide has really shifted around the Bigger Pockets website on wholesaling. It's a dying business. Everyone is finally coming around to the thought process that it's
- A horrible business model.
- Illegal.
Everyone who used to fight tooth & nail about how it wasn't illegal or was a good business model has probably gone out of business. I don't recall seeing any wholesalers start out around here then go on to build some big business...Have you?
- Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes7y
Originally posted by @James Wise:
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Russell Brazil:
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
Absolutely. Where anyone ever got the idea that putting a 30 day limit on trying to find a buyer from craigslist ads was a better plan than doing the same thing in addition to incentivising another 5,000+ agents on the MLS to also find you a buyer is beyond me.
Who is the madman that thought that was a better plan? Who???
Unlicensed broker propaganda is that they have BUYERS. As you pointed out, they don't have a sales force of THOUSANDS of agents to close deals. Our listings propagate out to over 800 websites. No unlicensed broker can match that. This doesn't take into account most of these operators are FRAUDS AND SCAMMERS with no money to close. Where are the unlicensed broker cheerleaders on this thread? Just sayin......
I'm tellin' ya the tide has really shifted around the Bigger Pockets website on wholesaling. It's a dying business. Everyone is finally coming around to the thought process that it's
- A horrible business model.
- Illegal.
Everyone who used to fight tooth & nail about how it wasn't illegal or was a good business model has probably gone out of business. I don't recall seeing any wholesalers start out around here then go on to build some big business...Have you?
There are quite a few that have disappeared but there is always some new cheerleader to take their place:) They never seem to argue facts though. One of them actually asked me, in the forum, for a POF LOL. What a joke!
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes7y
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @John Thedford:
Originally posted by @James Wise:
Originally posted by @Russell Brazil:
Originally posted by @James Wise:
Originally posted by @Dustin P.:
It's so much easier to get your license and double close on houses if you're going to wholesale. Once you assign the property you lose all control.
Plus with your license you can offer multiple solutions to a seller. You can either take the cash, as is, close quickly, no repairs/concessions/commissions offer. Or, if you aren't motivated enough to where you need to do that, I can list it at a discount. Win/win IMO
Trying to make money transacting sales & or connecting a buyer & seller together without a license is simply a poor man's business model. It's like going to a gun fight with a knife. Don't know why so many people still try to pump up this business model. It's such a terrible way to try to make money lol.
James, absolutely agree....and I buy houses from wholesalers. I view it as sinply the absolutely hardest path in the business to be successful at. Not only do you need to have all the same skills an agent has, have all the knowledge that flippers have...but you also need a huge marketing budget, and you have to overcome the ingrained view of how the public views selling a house...hire agent, sell house.
Why dont more people take the path of least resistance? Replicate easily replicatable business models. I love good wholesalers, they make me money....but what they are doing is simply a harder path than what I do.
Absolutely. Where anyone ever got the idea that putting a 30 day limit on trying to find a buyer from craigslist ads was a better plan than doing the same thing in addition to incentivising another 5,000+ agents on the MLS to also find you a buyer is beyond me.
Who is the madman that thought that was a better plan? Who???
Unlicensed broker propaganda is that they have BUYERS. As you pointed out, they don't have a sales force of THOUSANDS of agents to close deals. Our listings propagate out to over 800 websites. No unlicensed broker can match that. This doesn't take into account most of these operators are FRAUDS AND SCAMMERS with no money to close. Where are the unlicensed broker cheerleaders on this thread? Just sayin......
I'm tellin' ya the tide has really shifted around the Bigger Pockets website on wholesaling. It's a dying business. Everyone is finally coming around to the thought process that it's
- A horrible business model.
- Illegal.
Everyone who used to fight tooth & nail about how it wasn't illegal or was a good business model has probably gone out of business. I don't recall seeing any wholesalers start out around here then go on to build some big business...Have you?
There are quite a few that have disappeared but there is always some new cheerleader to take their place:) They never seem to argue facts though. One of them actually asked me, in the forum, for a POF LOL. What a joke!
Lol. For awhile there were all those websites that would sell them to people. DoHardMoney was giving you access to POF letters for a monthly fee or something of that nature.
Oddly enough I ended up closing 2 or 3 deals where DoHardMoney was the lender. I was completely SHOCKED that they actually went through & funded the 1st deal. I wanted to cancel the deal as I didn't think they'd come through but the seller wanted to give it a shot & it worked!
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@John Thedford@James Wise@Russell Brazil hey guys I think this wholesaling as tough as it is.
there are definitely some companies that have scaled it and make decent to very good money.
However those companies that do .. spend 20 to 50k a month in marketing have staff have buyers agents working for them so when a lead comes in someone is at the peoples home that day.. Then they have dedicated staff to resell the contracts or pipeline into the bigger turn key outfits who buy a lot if not a majority of their inventory through wholesale means.
However in my opinion these same folks if they put that much time and energy into really any business would be successful .. However its a small % that do this well.. and its very much market dominated .. in low value asset land IE homes that trade under 100k.. there is many more opportunities.. as markets firm up like whats happened there is simply less distressed real estate to go around.. Like when i was funding a big operator in Orlando they were buy from a very large wholesaler ( who was licensed) but as OREO dried up that wholesaler pivoted and is doing traditional real estate now..
Where I see a disservice to the public is the wholesale gurus the snap flip buys etc. who paint this as a way to make tons of money with no money and little effort.. when as we know there is really nothing harder in Real estate than to wholesale as folks do it.. which as we all know that have been in the business is a licensed activity whether they want to admit it or not.
One thing and a little off the subject but as it relates to Morris i read a few of the lawsuits against him and the plantiffs call him a marketer.. I suspect him having taken marketing fees for 500 plus homes with no license is going to come back and bite him as well.. LOL
Join the conversationCreate a free account to reply, vote on answers and follow this thread.