Who’s familiar with the new law (SB-1872) that restricts wholesaler in Illinois?
A REIA in the Chicagoland area had a phone call with the group behind the change and shared it with the group. We also had a discussion about it. Did you have specific questions?
@Zoran Stanoev Thanks for responding. I’m new to wholesaling and I was informed that you can’t assign contracts anymore as a wholesaler anymore. I was told you have to become a real estate agent to perform theses wholesale transaction now. Can you enlighten me or tell me where I can go to find out the rules?
Attend the Chicago Creative Investors Association (Chicago CIA) run by Jane Garvey for more details. They meet at the Embassy Suites hotel in Lombard on the third Sunday of the month at 5:30 PM. Next meeting is October 20th. They have a web site.
Here is a short summary. The bill was backed by the Illinois Board of Realtors. It is now illegal to wholesale more than one house a year in the state of Illinois without a real estate license. The really hard part will be getting a real estate agent to let you place a license with them. Especially since you just want to wholesale and not share your commission. Smart Realtors will not accept you. So in my opinion,wholesaling as currently taught by the GURUs is not only illegal but dead in Illinois.
There's plenty of flat fee brokerages in Illinois that will accept anyone with a license.
@George Skidis is correct. You basically need to be a licensed broker to wholesale more than one property every 12 months. Since the new law has passed, I’ve seen lots of offers from places (law firms, brokerages, investors, etc) that offer workarounds to the new law, but in my opinion, the only guaranteed way to not break the law is to be licensed. The new law is intentionally vague and i can see reasonable arguments being made that any workaround still violates the new law.