Is wholesaling real estate illegal in Virginia?

Is wholesaling real estate illegal in Virginia?

Member since 2021 · 9 posts · 2 votes

I am starting out wholesaling but would like to know if it is illegal in Virginia?

I also would like an opportunity to bird dog for any real estate investors to understand the industry.

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Patti RobertsonBusiness Member
Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
5y

Wholesaling is perfectly legal in Virginia. That said, many "wholesaler" operate illegally because they don't understand the brokerage laws. When you wholesale, you are selling YOUR position in the contract. Your contract gives you "equitable interest", which gives you the right to sell that interest. You can't however "joint venture" or "partner" with another wholesaler and market a property they have under contract. This is considered brokering real estate and requires a license. To illustrate the point that selling your position in the contract is legal, the Hampton Roads MLS, REIN, even has an allowance for a contract holder to list their contract for sale. At the time I am typing this, there are 84 active wholesale listings in the MLS, and 26 pending listings.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    Read the Entire state statute for real estate licensing....

  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    5y

    Wholesaling is perfectly legal in Virginia. That said, many "wholesaler" operate illegally because they don't understand the brokerage laws. When you wholesale, you are selling YOUR position in the contract. Your contract gives you "equitable interest", which gives you the right to sell that interest. You can't however "joint venture" or "partner" with another wholesaler and market a property they have under contract. This is considered brokering real estate and requires a license. To illustrate the point that selling your position in the contract is legal, the Hampton Roads MLS, REIN, even has an allowance for a contract holder to list their contract for sale. At the time I am typing this, there are 84 active wholesale listings in the MLS, and 26 pending listings.

  • Kristopher KyzarBusiness Member
    Rental Property Investor · Norfolk, VA · Member since 2017 · 260 posts · 174 votes
    5y

    @Duncan Thompson @Patti Robertson has it spot on. There are many active wholesalers in Hampton Roads. I would recommend having a Real Estate attorney draft you a set of contracts with blanks to fill in the variable information that you can use for both sides of the transaction. This will likely cost you about $500, but it is well worth the expense.

  • Denton, TX (DFW) · Member since 2019 · 41 posts · 12 votes
    5y

    @Duncan Thompson

    Wholesaling in Virginia in totally legal. There is a successful, renowned wholesaler in Virginia his name is Alex Joungblood. He has a big FB group on FB called Wholesaling Houses Fulltime where you can network with other wholesalers and ask Wholesaling questions in the group. Hope this helps.

  • Member since 2019 · 1 post · 0 votes
    5y

    Any recommendations on attorneys in Hampton Roads to help draft some contracts for me? I am attempting to wholesale a Lease-option deal I have going on.

    Thanks!

    Jacob Barritt

  • Member since 2021 · 1 post · 0 votes
    4y

    Thanks Patti

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