New To Wholesale Real Estate

[Shameer Lorde]

Greetings all I am a military veteran and entrepreneur. Looking to grow and learn and help people sell their homes as well as help others whether be a first time buyer or someone looking to flip. I am looking to create generational wealth through real state to help fund my dreams and to help others. Looking forward to connecting. If anyone in Georgia and would like to connect or wouldn't mind a mentor whether in this state or not. Happy to be here!

[E.J. McCaffrey]

Welcome to the group!

Real estate wholesaling can be a smart way to get into real estate without a lot of money up front, but there are some important legal rules you need to understand. In some states, you must have a real estate license if you're trying to wholesale, especially if you're advertising a property that you don’t actually own. Instead of promoting the property itself, you're usually only allowed to advertise your right to buy the property, which means you're selling your contract, not the house. If you market it the wrong way, you could get in trouble for acting like a real estate agent without a license.

Some states have very strict rules about wholesaling. For example, in Illinois, you can only wholesale one property per year without a license. Other places might let you assign contracts, but only if you follow certain rules and give full disclosure to both the seller and the buyer. These rules are meant to protect people from scams or confusion.

It’s also important to make sure your contract says you’re allowed to assign it to someone else. You can do this by adding “and/or assigns” next to your name on the contract. But watch out, some contracts written by sellers might say you’re not allowed to assign it at all. If you try to assign a deal that has a “no assignment” clause, the seller might cancel the deal or even take legal action.

Another smart move is to include something called a contingency clause in your contract. This gives you a legal way out of the deal if something goes wrong, like if the inspection finds major problems or you can’t find a buyer. Without this, you could lose your deposit or be forced to buy the property yourself.

Because the laws can be different in every state, it’s a good idea to talk to a real estate attorney who knows about wholesaling. They can help you write your contracts the right way and make sure you’re following all the rules. That way, you can protect yourself and keep your business running smoothly.

Best of luck!

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.