Is wholesaling properties legal in Oregon & Washington State? I've read some mixed things since I know you can't advertise a property you don't own. Which methods are people using today that are legal?
Someone told me "Unless you are a licensed real estate agent, you cannot market PROPERTIES you don't own, but you can MARKET THE CONTRACT ON THE PROPERTY in every state.". Is this true and the way to get around it?
Yes, you can. But you are very limited in who you can approach. Search for it and you’ll find numerous conversations with the relevant Washington code. Honestly, I don’t know how much longer wholesalers will be able to keep going because of how unethical some wholesalers are. Do it at your own risk.
If you want to help people buy and sell real estate - get your brokers license.
Best to speak with an attorney since there is an strong effort to get rid of wholesalers from lobby groups so laws can change suddenly.. Although I understand even a lot of real estate attorney's do not even know what a wholesaler is..
Anyway, from what I understand, what you heard is correct. As a wholesaler you are not selling a property, you are assigning a contract. Every wholesaler seems to have their own risk tolerance with how they advertise but know this is all gray area business. This is why a lot of wholesalers go about only finding buyers through cash buyers email lists or reaching out directly, otherwise it can be seen as you pairing a buyer and a seller of real estate which does require a license.
Please do not make a decision based on my next comment but In all honesty, I have yet to find a wholesaler getting in trouble for advertising the wrong way. Most I have heard about getting in trouble is how they come across to both the buyer and the seller. Some wholesalers do not disclose what they are attempting to do with the owner so they get sued.. Some wholesalers do not communicate properly with the buyer so they get sued (this one happens more since buyer's non refundable earnest money is at stake).
Anyway, if you find any properties, send them my way! I always have active investor clients that can do hard money and I might even buy one or two myself.