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Updated over 11 years ago on .
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every realtor tells me I need a license
Hello friends,
Being in the mortgage business for the past 4 as well as being a property manager i have established a pretty good relationship with a good amount of realtors. I have been calling around and telling them that i am looking to get into wholesaling homes and for the most part all of them have been telling me that they think that i need a license to do this. Could someone please explain to me why i do not need a license to do this? because i kind of feel like i should need one also...
I have been wanting to get my realtors licens anyway so i am sure that i will get it at some point but in the mean time I am not real turned on by testing my luck... am i good to go?....
Thank so much!
Most Popular Reply
Andrew: what's your definition of wholesaling? What is it you want to do exactly? Of course you don't need a license to buy a property and re-sell it. Assignments of contract are legal and are done every day. Double closings, while legal if you are a principal and if they are done with the right paperwork, can cause confusion. Agents get confused (as do the realtor boards, depts. of RE and DAs and AGs) when you bring buyers and sellers together for profit without a license.
I haven't done an assignment or double close in many years. Why? Because I don't have to. I'd rather use lender funds (even hard money funds) and/or my own funds and close on the deal. Closing is everything. I get to control the re-sale in a way that isn't possible when you are trying to get the stars to align with a double closing. I don't have to disclose anything to the buyer or the seller about the price or the assignment or the double close. I only have to worry about one party at a time. So while I have no doubt that assignments and double closes are legal, they just aren't worth it to me.
You can read about wholesaling endlessly here at BP. Lots of opinions, lots of spewing (unfortunately) but not a lot of case law. Read and think. Consult with an attorney. And then proceed!