License or no license to Wholesale?

Question

Jennifer Dzera · Answer

Hi Pedro!

I am also very new to this but if you look through the forums, you will find this question is asked a lot. The short answer though is no- you don't have to have your license to wholesale. The reason is, you are not selling homes, you are selling the rights to a contract. There are many opinions however on if you should or shouldn't. I suppose it is really up to you and your goals of what you want to do. I am just starting and have gone through about 20+ realtors and still haven't been able to find one who is experienced and willing to work with me and help guide me. I suppose I can't blame them though- it's not their responsibility to make sure I know what to do! I have found one realtor who I am working with that has done her best to do what is needed but she is also still relatively new so we are learning a lot together. I have contemplated getting my license though just to be able to have access to the MLS and other information that could help. It is a slippery slope though and I think the main thing to remember is to disclose, disclose, disclose and have a good understanding of what you're doing before going out and starting!

Pedro Plencher · Answer

@Danny Day - I absolutely agree with you. Thank you for your honest opinion.

Danny Day · Answer

You need MLS access to comp properties

Yes you need to get it.. all you need to do is disclose.

Zach Schaar · Answer

I agree with @Terry Hershberger . You don't NEED a license for wholesaling, but I think you will find very beneficial having your license and how much you'll learn in class! Multiple vehicles is the name of the game! Good luck -

Bill Gulley · Answer

Without a  you need to be selling the contracts not the property. The same issue applies to advertising, you can' advertise what you don't own without a license but the trick is advertise the interest to that property.

Local custom prevails, meaning what is expected of you in that area as to how you operate will need to be followed, ensure you are never seen as acting as an agent for any owner or buyer. Look closely at state law as some require a license to facilitate a sale transaction. Facilitating one transaction probably won't be an issue, but doing 16 becomes more obvious that you're in the business and it depends on how regulators view your operations. :)

Terry Hershberger · Answer

No, but nothing wrong with having a real estate license if you are going to be in the business for the long term.