Updated over 11 years ago on . Most recent reply
Brand spanking new to the forum- Confusing question...
Good afternoon.
My name is Larry. I'm brand new to this forum and REI in general. I've been studying the work of Sean Terry for a couple weeks now and I'm ready to make my first move. However... my father in law, a real estate agent for 25 years, has told me that I will end up in federal prison if I don't get a license before doing any wholesale transactions. I've talked with him till I'm blue in the face, and yet he still insists that I should not proceed forward and that what I would be doing is illegal unless I actually PURCHASE the house before selling it. He said that I cannot bring a seller and a buyer together legally. Should I listen to his advice or is Sean Terry right? Is there any diplomatic way that I could explain the legality of this to him without sounding like an idiot? I'm green and wet behind the ears and he's seasoned with a quarter century under his belt. I'm very deflated and discouraged at this point.
Thank you so much in advance and I'm sure that this question has been asked many different ways and a "newb" is often looked down upon, but what I'm asking you to remember, is that everyone was "new" at one time and I'm trying to figure out how to do this correctly and LEGALLY. I'm a police officer and a father of a small child and the last thing I need is to break the law trying to make a career change. Thank you!
Most Popular Reply
In order to represent 3rd party in a transaction you most certainly need a license. If your wholesale deal looks like you got paid to bring the seller and buyer together, and have done so without a license, then you will be breaking law.
How do people do it - by being contractual principal in the transaction. Last I checked, it is not illegal to sell that which you own. Contract is key...