Direct Mail in Illinois - Can I Still Send?

7 Replies

I was back in Illinois a couple weeks ago and built up a driving for dollars list. My intent is to send these people a letter and BUY the property myself and flip or do the BRRRR method.

With the new law about wholesaling, can I still send direct mail?

I am out of state and not licensed as a Realtor in any state.

If you are buying the property yourself you are fine. The state defined wholesaling as brokering and is requiring a license to assign contracts so as long as you are buying and selling for yourself or your company no license is required. 

That being said the best thing is to always consult a real estate attorney in Illinois to confirm but you can also read the new law yourself own you look it up.

The new law does not require a license to transact your own real estate transactions. Wholesaling falls under the definition of a broker because you're not buying or selling for yourself. The new law can be confusing, even if you read it (@Greg Dickerson ) and I can see why you would ask.  Good luck with the letters.

At the end of the day, the Illinois wholesaling laws exist to make sure ethical and transparent practices are used during wholesaling real estate. The laws protect those who decide to wholesale properties by requiring: (1) the investor to be the principal buyer, (2) the purchase and sale agreement is valid, (3) the transaction is transparent and includes the required agreement language, and (4) there is no guaranteed income. Make sure you are compliant with these elements as you move forward with any wholesaling in Illinois, and I'll also echo the importance of working with a local real estate attorney who knows the ropes - at least for your first few deals.

@Zoran Stanoev @Greg Dickerson

So does this mean you can no longer assign contracts in IL however you're free to do a back to back or "ABC Close"? As long as the property is legally yours before you resell it?

I'm not in IL but I've been seeing reference to this new law and it's interesting

Originally posted by @Justin Ellis :

@Zoran Stanoev @Greg Dickerson

So does this mean you can no longer assign contracts in IL however you're free to do a back to back or "ABC Close"? As long as the property is legally yours before you resell it?

I'm not in IL but I've been seeing reference to this new law and it's interesting

 The law limits a non-licensed broker to 1 wholesale deal every 12 months. While I think a double-close may avoid the new requirements, ultimately, I think they’ll figure it out and it will no longer be a work around to the new law. 

@Matt McConkey , please follow the guidance of @Zoran Stanoev as he is up to speed with recent legislative enactments. 

The IL Legislature has defined recently amended the real estate act of 2000 so as to define wholesaling as broker conduct (this conduct was previously undefined and thus there is safe harbor for prior acts). 

These days, Wholesaling is impermissible and a violation of the real estate act of 2000 (which carries high penalties + potential jail timeunless you are a licensed realtor/broker and you make disclosure of that fact.

Well this is just fantastic news. Truly I just want to buy the property myself. 

I'll definitely talk to a lawyer beforehand, but I cannot thank everyone enough. 

Just made my day!