JB Pritzker just signed a bill limiting 2 properties for every wholesaler here in IL.
At ILGA.gov you can read the letter of the new law in SB1872 - as amended - Section 1-10 (5)
"(5) Whether for another or themselves, engages in a pattern of business of buying, selling, offering to buy or sell, marketing for sale, exchanging, or otherwise dealing in contracts, including assignable contracts for the purchase or sale of, or options on real estate or improvements thereon. For purposes of this definition, an individual or entity will be found to have engaged in a pattern of business if the individual or entity by itself or with any combination of other individuals or entities,
whether as partners or common owners in another entity, has
engaged in one or more of these practices on 2 or more occasions in any 12-month period."
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
7y
Doing more than 1 deal a year probably eliminates 95% of people who call themselves wholesalers anyway.
I think the workaround is follow the law. If this is your business, get the required license or partner with someone who has a license. Getting a RE license is not that huge a barrier to entry to become a wholesaler.
Flipper/Rehabber · Louisville, KY · Member since 2008 · 1k+ posts · 1k+ votes
7y
Doing more than 1 deal a year probably eliminates 95% of people who call themselves wholesalers anyway.
I think the workaround is follow the law. If this is your business, get the required license or partner with someone who has a license. Getting a RE license is not that huge a barrier to entry to become a wholesaler.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y
@Vladimir Fefer all the wholesalers I know are still working through this, but essentially, yes. You are supposed to have a license to wholesale. This will get interesting as the whole concept of wholesaling kind of puts you at odds with having a fiduciary duty to the seller...
@Vladimir Fefer all the wholesalers I know are still working through this, but essentially, yes. You are supposed to have a license to wholesale. This will get interesting as the whole concept of wholesaling kind of puts you at odds with having a fiduciary duty to the seller...
Great point. I don't know how this is going to work in real life. Why didn't they just require the seller to be represented by a licensee? Would have been so much simpler and would mostly achieve what they are trying to achieve.
Realtor · Southeast Michigan · Member since 2017 · 232 posts · 180 votes
7y
Easy solution is get a license. I wonder why some wholesalers don't tho? Perhaps John Thedford would have an answer. A shame I can't tag him as we are not colleagues