All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Hard Money Lenders Insurance Contractors Investment Companies Build Your Team

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
ForumsArrowFlorida Real Estate Q&A Discussion ForumArrowWholesaling Land in Florida
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Create post

Wholesaling Land in Florida

20 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 16
  • Votes 10

Stephanie Lewis
from Fort Pierce, Florida

posted over 3 years ago

Hey BP!

Just received a call from a potential motivated seller looking to sell close to 5 acres of land. Is there any issues with this vs wholesaling single family ? Any tips or insight on evaluating this potential deal ? 

Thanks ! 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 227
  • Votes 101

Marty True
Rental Property Investor from Miami Beach, FL

replied over 3 years ago

Hi @Stephanie Lewis Congrats on getting sellers calling you! As far as your question of whether there are any issues, there is nothing different in wholesaling vacant land vs a single family residence. That being said, there are issues surrounding wholesaling in general, that many "wholesalers" in Florida ignore. As long as you're wholesaling in a manner that is abiding by the FL laws regarding unlicensed brokerage, then there is no difference between wholesaling vacant/improved land. Hope this helps and good luck to you!

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied over 3 years ago

There are only two ways to LEGALLY "wholesale" in Florida:
1. be licensed
2. own it

Using contracts to broker is NOT legal in FL but is legal in some states. The relevant statute is 475.43.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 285
  • Votes 90

Jeremy Kloter
Real Estate Broker from Tampa, FL

replied about 3 years ago

@Stephanie Lewis , @Marty True covered the right points. Just don't represent yourself as a licensed agent but you should be fine. Before marketing the property (once you get under contract), be sure to do some background work to see if the lot can be split and what can be built on it for its current zoning that may help you market it. Also, check to see what utilities and upgrades have been done, if you want to go the extra mile check to see what kind of trees are on the property that may need a permit to be removed which can be an obstacle.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago
Originally posted by @Jeremy Kloter :

@Stephanie Lewis , @Marty True covered the right points. Just don't represent yourself as a licensed agent but you should be fine. Before marketing the property (once you get under contract), be sure to do some background work to see if the lot can be split and what can be built on it for its current zoning that may help you market it. Also, check to see what utilities and upgrades have been done, if you want to go the extra mile check to see what kind of trees are on the property that may need a permit to be removed which can be an obstacle.

 You are giving BAD information and quite frankly a violation of licensing laws. One cannot advertise properties they do not own unless licensed. This includes having a contract on the property. That is not title ownership. Here are a couple of guys advertising properties they had under contract. See the results:

https://www.myfloridalicense.com/sto/unlicensedact...
https://www.myfloridalicense.com/sto/unlicensedact...

Circumventing licensing using contracts to broker is NOT legal. Sorry charlie....

Rotate Log in or sign up to reply
user profile avatar
  • Posts 285
  • Votes 90

Jeremy Kloter
Real Estate Broker from Tampa, FL

replied about 3 years ago

@John Thedford I'm assuming he has equitable interest in the property. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 22K
  • Votes 12K

Wayne Brooks
Real Estate Professional from West Palm Beach, Florida

replied about 3 years ago

“Equitable interest”, if you mean having it under contract, has no bearing on marketing a house you don’t own in relation to FL licensing statutes.......that’s guru school misinformation.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 22K
  • Votes 12K

Wayne Brooks
Real Estate Professional from West Palm Beach, Florida

replied about 3 years ago

More to the point, there is a Lot of virtually useless, low value, not in demand land in the state of FL.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Single Family
  • Posts 34K
  • Votes 47K

Jay Hinrichs
Real Estate Broker from Lake Oswego OR Summerlin, NV

replied about 3 years ago

@Wayne Brooks   one of my fav  movies is Glenn Gary Glen ross.. anyone wanting to resell land in low demand areas should see what it takes to actually do it.. it takes real professial.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Single Family
  • Posts 34K
  • Votes 47K

Jay Hinrichs
Real Estate Broker from Lake Oswego OR Summerlin, NV

replied about 3 years ago

@Jeremy Kloter   equitable interest is a misnomer and something that is taught by those just wanting to get money out of those that think they can sell real estate without proper licensing.. just go and ask the state if what your doing is legal.. you will find it is not..

you just need to close on what you aim at and resell.

I funded one of the larger turn key operations I Orlando for a few years and they bought a ton of property from Altura which was a very big wholesaling operation but those boys were licensed as they knew they needed to be.. of course wholesaling in FLA these days is pretty tough..

Rotate Log in or sign up to reply
user profile avatar
  • Posts 230
  • Votes 128

Erin Legler
Real Estate Agent from Orlando, FL

replied about 3 years ago

@Stephanie Lewis send me the land info, I might have a buyer for it.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 56
  • Votes 22

Nick Danaluk
Investor from Port St. Lucie, Florida

replied about 3 years ago

That lot is just north of me. Where is it located? Look for wetlands and gopher tortoises too.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago
Originally posted by @Jeremy Kloter :

@John Thedford I'm assuming he has equitable interest in the property. 

 Equitable interest is NOT ownership. Marketing properties one does not own, unless licensed, is illegal.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago

@Jeremy Kloter

Brokerage Activities
A BAR SALE
Appraise
Buy
Auction
Rent
Sell
Auction
Lease
Exchange
FOR ANOTHER...assigning contracts is both selling for another...and to get the buyers....advertise for another. If they cannot assign, they cannot SELL the property they DO NOT OWN. BINGO~! BROKERING. And paying a non-licensee COULD cause trouble for an agent or broker.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 21
  • Votes 25

Rick Allen
Entrepreneur/App Developer from Ocoee, Florida

replied about 3 years ago

I am not an Attorney or legal counselor and  I am not offering legal advise. 

I am going play devils advocate for a while.  With regards the legality of the wholesaling of property in FL:

Those waters are very grey on weather or not you need a license to legally wholesale a property.  For the record I am licensed and have been since I began my wholesaling career back in 2014.  IMO, most people blast out FL Chapter 475.43 and how it legally prohibits someone from wholesaling without a license in the state of FL without reading or fully understanding the statute.  The statute reads: "475.43 Presumptions.—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate. All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved."


I believe that the phrase "Substantial consideration" (SC) is one that provides most leeway for  unlicensed activity.  There is no definition for what is considered Substantial Consideration, however, the IRS considers $100 to meet the criteria of SC.   That used in conjunction with theory of "Equitable Rights" may provide enough to beat the the licensed activity issue.  


Now all of that being said, I would recommend getting a Real Estate license. I wouldn't want to even consider running into the authorities on an unlicensed selling claim.  

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago
Originally posted by @Rick Allen :

I am not an Attorney or legal counselor and  I am not offering legal advise. 

I am going play devils advocate for a while.  With regards the legality of the wholesaling of property in FL:

Those waters are very grey on weather or not you need a license to legally wholesale a property.  For the record I am licensed and have been since I began my wholesaling career back in 2014.  IMO, most people blast out FL Chapter 475.43 and how it legally prohibits someone from wholesaling without a license in the state of FL without reading or fully understanding the statute.  The statute reads: "475.43 Presumptions.—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate. All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved."


I believe that the phrase "Substantial consideration" (SC) is one that provides most leeway for  unlicensed activity.  There is no definition for what is considered Substantial Consideration, however, the IRS considers $100 to meet the criteria of SC.   That used in conjunction with theory of "Equitable Rights" may provide enough to beat the the licensed activity issue.  


Now all of that being said, I would recommend getting a Real Estate license. I wouldn't want to even consider running into the authorities on an unlicensed selling claim.  

 The first part of the statute states you must have a license or the presumption is that you are brokering without a license. The part you quoted states that contracts without substantial consideration are declared void. Brokerage activities include:
A BAR SALE
Advertisiing
Buying
Appraising
Renting
Selling
Auctioning
Leasing
Exchanging
So, do this for another WITHOUT a license is NOT permitted.  I got a call yesterday from DBPR concerning a complaint I filed for using contracts to circumvent licensing law. They were VERY clear..and stated this is not permitted. No ifs, ands, or buts. ILLEGAL. Get licensed, problem solved.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago

@Rick Allen

Here is the way the state looks at it: If you assign and bring a buyer, you are SELLING RE without a license. If you cannot assign, you aren't bringing a buyer. The state put an end to the assignment game for non-licensees via 475.43 due to the number of people putting properties under contract and then advertising them (a violation) and/or bringing a buyer (selling the RE). Unlicensed "wholesalers" ARE BROKERING. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 21
  • Votes 25

Rick Allen
Entrepreneur/App Developer from Ocoee, Florida

replied about 3 years ago

Ok that is pretty clear. What about assigning beneficial interest in a trust? Or perhaps, selling a single use LLC that has a property under contract? IF you have the funds lined up to close a transaction, does the state have viable case?

Really, the answer is get licensed and avoid a lot of the issues.  

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago

if the LLC is using contracts that is a violation. The simple answer is purchase the property and resell it and call yourself a wholesaler if you wish or get a real estate license. Either of those are legal and will keep you out of trouble.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Managing Tenants, and Tenants
  • Posts 9.2K
  • Votes 6.4K

John Thedford
Real Estate Broker from Naples, FL

replied about 3 years ago

the state does not care if you have funds the bottom line is unless you own it or are licensed that is brokering without a license.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 56
  • Votes 22

Nick Danaluk
Investor from Port St. Lucie, Florida

replied about 3 years ago

The license keeps everything square. Some of the wholesalers are unscrupulous to buyers and sellers, thus the need for licensing. If there is no opportunity for a license to be lost, then unscrupulous activity can widen.

Rotate Log in or sign up to reply
  • 1
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Madelynn Markle
Madelynn Markle
Gainesville, FL
9.29
Score
Ralph Corpuz
Ralph Corpuz
7.29
Score
Jenn Barona
Jenn Barona
Gainesville, FL
7.0
Score
Katharine G.
Katharine G.
New York, NY
3.43
Score
Steven Hassett
Steven Hassett
St. Petersburg, FL
3.29
Score

Florida Real Estate Q&A Discussion Forum Trending Discussions

  • RENTALS NOT GENERATING ENOUGH MONIES
    5 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.