real estate wholesaling under attack
oak lawn illinois · Member since 2022 · 16 posts · 21 votes
real estate wholesaling under attack
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Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
4y@Rudy Ferrara This isnt new. This was passed in Illinois at least 3 years ago but it might be closer to 5. You can still double close and you can still wholetail. This is what happens when you listen to youtube gurus that are just trying to get link clicks and not actually educate people with accurate information. There is a difference between wholesaling and assignments. Wholesaling is a strategy just like fix and flip or buy and hold. Assignments are the method, just like hiring contractors or doing the work yourself on a flip or getting a property manager or managing yourself on a rental. These are all methods that accomplish the same objective. Wholesaling is NOT illegal ANYWHERE. Assignments are the method that has come under the most scrutiny and been regulated in a lot of places. There are other methods of wholesaling. You can either complain about changes that you have no control over (unless you want to run for some kind of political office in your state) or you can adapt, adjust and keep making money. I know which one I would choose...
I am in an incredibly hot market, I recognize the value of being able to close on a property and then resell it at a higher price. I bought a house last year from a seller that was being transferred for work and needed a substantial leaseback. By the time he had moved out (after 60 days) the value of the property increased. I put the house on the market and sold it for 100k more than what I paid for it. There is no way I couldve gotten that same number off market. I found a lender with a loan product to help wholesalers buy and resell their deals. Game changer. So maybe do a little bit more research before you go all chicken little ‘the sky is falling’
96 Replies
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
my sstate illlinois just banned wholesaling except for one deal a year. It will spread to all states. Watch the video in the link below
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
i didn't finish my post. sorry
my sstate illlinois just banned wholesalingt hrough lobbyhing state wide and nationally except for one deal a year. It will spread to all states. Watch the video in the link below
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
aparently my link isn't able to post here
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
For the video "real estate wholesalers are screwed, more regulation coming in 2022 go to you tube for a more detailed explanation of my earlier post "Realtors want wholesalers out of the picture completely. We need to unite and fight back nationally My sstate illlinois just banned wholesaling except for one deal a year. . The NAR (national realtors association) through lobbyhing state wide and nationally will have no competition from wholesalers in the future is what this is about. And It will spread to all states. "
I apolagize for not being able to post the lyoutube ink i wanted to share
- 4yJoe S.Pro MemberInvestor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
Well that will be bitter sweet.. Wholesellers are definitely muddying the water in my neck of the woods. We have only wholesaled a few properties in the last few years whereas we keep most of our properties and do all of our own marketing. With that being said not being able to wholesale a couple of properties from time to time would not hurt our business because our business is not built around wholesaling. There are so many Whole Seller’s over here that it’s hard to find a deal. There’s so many high energy young bucks that are over promising and getting in front of the sellers before me much of the time.
I’m sure that all sounds very selfish on my part. LolWish you well.
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
You're not selfish joe s. I'm a newbie without deep pockets or training for more complex buy and holds. I just want to break back into real estate investing after several years and wholesaling assignements is the easiest way which netted my first $7k deal several years back. I agree there's too many quick buck newbies without any knowledge of how real estate investing works with the seller, buyer, title company and/or attorney. They think you find a seller and buyer and sit back and collect a paycheck or run away when the buyer can't get funding or sue the seller or buyer for getting angry at them for not revealing their arv profit from the start before closing. On the other hand if you watch the youtube video realtors are a powerful lobbying block intent on eliminating any competition. Check it out and thanks for your reply
rudy
- 4yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
@Rudy Ferrara I hope states do outlaw contract flipping wholesaling.
Wholesalers that provide cash to a struggling home owner or investor, CLOSE with their own cash then resell at a profit are all good and will never be outlawed.
People that just try to get a property under contract under market value and flip the paper contract to a buyer do not provide any real value in my opinion. If you consider convincing someone to sell a property to you when you have no funds to close and no ability to purchase the property bringing value to a deal… I have a bridge to wholesale you :)
Irish Jones Realty4.947 Reviews - oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
Your "bridge" mr jones is called transactional selling which i'm learning about. As for assignments it's earned a bad reputation from unethical and real estate illiterate predators who care less about the people selling a house or wanting to buy one from an intermediate wholesaler using an assignment than they are in getting a seller to sign a contract and sit back until closing to collect a check without any care for helping the seller who is in a desperate situation for whatever reason. Who perhaps can't make mortgage payments, came down with covid or as my first seller was simply tired of the headache of travelling back and forth to his properties he couldn't maintain and another tired of destructive tenants. He/she may have a family they're trying to provide for while looking to move into another property while closing on their current property, etc. This is a real service an ethical/knowledgable caring wholesaler provides people far from the predator image some give it.
- Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes4y
@Rudy Ferrara you could perform this service you describe with a license.
- oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
yes jonathan i could get a realtors license which is exactly what realtors are lobbying for nationwide, elimination of wholesalers. No more competition. It eats into their profits. Just as uber does with over priced taxis. They have the clout and the lobbying power to sway congress just as monsanto buys off politicians to get their anti gmo labeling laws passed or big pharma suppresses any non drug unpatentable natural/organic preventon/cures as there's no profit in health. Is why there's a walgreens on every corner. Monopolies rule us. They own us through congress and citizens united legislation is exactly what realtors want. I for one believe in alternatives and choices that's what free enterprise is all about. Competition is the name of the game which you won't find in dictatorships like russia, north korea or china. Their government also CONTROLS their people OR ELSE as you are witnessing in ukraine which was in existence long before russia.
- Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes4y
@Rudy Ferrara This isnt new. This was passed in Illinois at least 3 years ago but it might be closer to 5. You can still double close and you can still wholetail. This is what happens when you listen to youtube gurus that are just trying to get link clicks and not actually educate people with accurate information. There is a difference between wholesaling and assignments. Wholesaling is a strategy just like fix and flip or buy and hold. Assignments are the method, just like hiring contractors or doing the work yourself on a flip or getting a property manager or managing yourself on a rental. These are all methods that accomplish the same objective. Wholesaling is NOT illegal ANYWHERE. Assignments are the method that has come under the most scrutiny and been regulated in a lot of places. There are other methods of wholesaling. You can either complain about changes that you have no control over (unless you want to run for some kind of political office in your state) or you can adapt, adjust and keep making money. I know which one I would choose...
I am in an incredibly hot market, I recognize the value of being able to close on a property and then resell it at a higher price. I bought a house last year from a seller that was being transferred for work and needed a substantial leaseback. By the time he had moved out (after 60 days) the value of the property increased. I put the house on the market and sold it for 100k more than what I paid for it. There is no way I couldve gotten that same number off market. I found a lender with a loan product to help wholesalers buy and resell their deals. Game changer. So maybe do a little bit more research before you go all chicken little ‘the sky is falling’
- Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes4y
TOOO many ways around that and too many people are just listening to the first thing they see and get in a panic. But double close and use transactional funding. Done deal for wholesalers. That will never stop wholesaling.
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Lydia R.:
@Rudy Ferrara This isnt new. This was passed in Illinois at least 3 years ago but it might be closer to 5. You can still double close and you can still wholetail. This is what happens when you listen to youtube gurus that are just trying to get link clicks and not actually educate people with accurate information. There is a difference between wholesaling and assignments. Wholesaling is a strategy just like fix and flip or buy and hold. Assignments are the method, just like hiring contractors or doing the work yourself on a flip or getting a property manager or managing yourself on a rental. These are all methods that accomplish the same objective. Wholesaling is NOT illegal ANYWHERE. Assignments are the method that has come under the most scrutiny and been regulated in a lot of places. There are other methods of wholesaling. You can either complain about changes that you have no control over (unless you want to run for some kind of political office in your state) or you can adapt, adjust and keep making money. I know which one I would choose...
I am in an incredibly hot market, I recognize the value of being able to close on a property and then resell it at a higher price. I bought a house last year from a seller that was being transferred for work and needed a substantial leaseback. By the time he had moved out (after 60 days) the value of the property increased. I put the house on the market and sold it for 100k more than what I paid for it. There is no way I couldve gotten that same number off market. I found a lender with a loan product to help wholesalers buy and resell their deals. Game changer. So maybe do a little bit more research before you go all chicken little ‘the sky is falling’
thats my day job so much more value when you actually control the asset as opposed to trying to control the contract huge difference and once light bulb goes off .. then its a point of legitimate real estate investor and the big bug a boo that wholesalers/assignors of contracts run into the the white lies they tell IE I am a cash buyer when in fact they are not.. or my partner has to see it when they are in fact not truly partners.. etc etc.. Assigning contracts as a business model the way folks do it is ILLEGAL in virtually every state when actually read the laws LOL buying closing and flipping is not .. When one never takes title then your breaking the law. - oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
Thanks lydia and jesse
i agree with both of you. Assigning a property is just less involved and allows newbies like myself to enter the real estate field with little or no money and training. That is the problem you've both had some training which is the main gist of my post. Assignments have gotten bad pr because of a few bad apples taking advantage of people. With proper training and respect fro buyers, sellers, title company, attorneys, lenders and UNDERSTANDING how all these people work together assignments are still a viable way to help distressed sellers hook up with potential buyers without taking possesion. Yes there are alternatives i'm looking into ie transactional, double closing, virtual wholesaling the latter can still use out of their own state assignments. All of these i'm sure i'll be doing. Double closing is much more time consuming and expensive with less profit than assignments but with the same cost in time. Transactional is the next best thing in my opinion as long as you have the buyer/lender ready to go with you.
I'm so happy for you lydia. I wish chicago was as hot as texas unfortunately it's not. Perhaps i can do a virtual deal there. I'm too new to recommend my hooking up with you guys but if you're open for a jv down the road please let me know and thanks for your reply
rudy ferrara
- 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Rudy Ferrara:
Thanks lydia and jesse
i agree with both of you. Assigning a property is just less involved and allows newbies like myself to enter the real estate field with little or no money and training. That is the problem you've both had some training which is the main gist of my post. Assignments have gotten bad pr because of a few bad apples taking advantage of people. With proper training and respect fro buyers, sellers, title company, attorneys, lenders and UNDERSTANDING how all these people work together assignments are still a viable way to help distressed sellers hook up with potential buyers without taking possesion. Yes there are alternatives i'm looking into ie transactional, double closing, virtual wholesaling the latter can still use out of their own state assignments. All of these i'm sure i'll be doing. Double closing is much more time consuming and expensive with less profit than assignments but with the same cost in time. Transactional is the next best thing in my opinion as long as you have the buyer/lender ready to go with you.
I'm so happy for you lydia. I wish chicago was as hot as texas unfortunately it's not. Perhaps i can do a virtual deal there. I'm too new to recommend my hooking up with you guys but if you're open for a jv down the road please let me know and thanks for your reply
rudy ferrara
You hit the nail on the head LITTLE OR NO TRAINING thats exactly what the states are trying to do away with .. you have all these folks that have little to no training or knowledge trying to transact with what is for many citizens the most important asset they have or will ever have.. this leads to many bad things happening to the public and then very little recourse .. - oak lawn illinois · Member since 2022 · 16 posts · 21 votes4y
jay i meant to include you in my last post. Thanks for your insight
rudy ferrara
- Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes4y
Quote from @Rudy Ferrara:
Thanks lydia and jesse
i agree with both of you. Assigning a property is just less involved and allows newbies like myself to enter the real estate field with little or no money and training. That is the problem you've both had some training which is the main gist of my post. Assignments have gotten bad pr because of a few bad apples taking advantage of people. With proper training and respect fro buyers, sellers, title company, attorneys, lenders and UNDERSTANDING how all these people work together assignments are still a viable way to help distressed sellers hook up with potential buyers without taking possesion. Yes there are alternatives i'm looking into ie transactional, double closing, virtual wholesaling the latter can still use out of their own state assignments. All of these i'm sure i'll be doing. Double closing is much more time consuming and expensive with less profit than assignments but with the same cost in time. Transactional is the next best thing in my opinion as long as you have the buyer/lender ready to go with you.
I'm so happy for you lydia. I wish chicago was as hot as texas unfortunately it's not. Perhaps i can do a virtual deal there. I'm too new to recommend my hooking up with you guys but if you're open for a jv down the road please let me know and thanks for your reply
rudy ferrara
The BEST WAY to handle that is to have your BUYER FIRST. Don't chase the deal until you have a legit buyer, know their criteria then start looking. Once it's time for the contract, then already know what your buyer will pay, get it UC for less than that and double close. No one can stop you from that and you don't need experience in doing it.
You just don't need to do it like MOST wholesalers who lock **** up, don't care about the seller and THEN find a buyer. It causes more stress, more headaches then makes you and others look bad. - 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Jesse LeBlanc:
Quote from @Rudy Ferrara:
Thanks lydia and jesse
i agree with both of you. Assigning a property is just less involved and allows newbies like myself to enter the real estate field with little or no money and training. That is the problem you've both had some training which is the main gist of my post. Assignments have gotten bad pr because of a few bad apples taking advantage of people. With proper training and respect fro buyers, sellers, title company, attorneys, lenders and UNDERSTANDING how all these people work together assignments are still a viable way to help distressed sellers hook up with potential buyers without taking possesion. Yes there are alternatives i'm looking into ie transactional, double closing, virtual wholesaling the latter can still use out of their own state assignments. All of these i'm sure i'll be doing. Double closing is much more time consuming and expensive with less profit than assignments but with the same cost in time. Transactional is the next best thing in my opinion as long as you have the buyer/lender ready to go with you.
I'm so happy for you lydia. I wish chicago was as hot as texas unfortunately it's not. Perhaps i can do a virtual deal there. I'm too new to recommend my hooking up with you guys but if you're open for a jv down the road please let me know and thanks for your reply
rudy ferrara
The BEST WAY to handle that is to have your BUYER FIRST. Don't chase the deal until you have a legit buyer, know their criteria then start looking. Once it's time for the contract, then already know what your buyer will pay, get it UC for less than that and double close. No one can stop you from that and you don't need experience in doing it.
You just don't need to do it like MOST wholesalers who lock **** up, don't care about the seller and THEN find a buyer. It causes more stress, more headaches then makes you and others look bad.while you maybe right in most jurisdictions I can tell you in Oregon it is simply not legal to advertise in ANY manner a home you do not own unless your a licensed agent.. And title companies are very leary of double close here you have to have your own funds IE were you come in.. and there has to be full disclosure to the seller of the middle man profits.. this leads to many deals simply not happening
- 4yMatthew Irish-JonesBusiness MemberReal Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
Quote from @Rudy Ferrara:
yes jonathan i could get a realtors license which is exactly what realtors are lobbying for nationwide, elimination of wholesalers. No more competition. It eats into their profits. Just as uber does with over priced taxis. They have the clout and the lobbying power to sway congress just as monsanto buys off politicians to get their anti gmo labeling laws passed or big pharma suppresses any non drug unpatentable natural/organic preventon/cures as there's no profit in health. Is why there's a walgreens on every corner. Monopolies rule us. They own us through congress and citizens united legislation is exactly what realtors want. I for one believe in alternatives and choices that's what free enterprise is all about. Competition is the name of the game which you won't find in dictatorships like russia, north korea or china. Their government also CONTROLS their people OR ELSE as you are witnessing in ukraine which was in existence long before russia.
No one I know is worried about competition from wholesalers.
Irish Jones Realty4.947 Reviews - 4yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Matthew Irish-Jones:
Quote from @Rudy Ferrara:
yes jonathan i could get a realtors license which is exactly what realtors are lobbying for nationwide, elimination of wholesalers. No more competition. It eats into their profits. Just as uber does with over priced taxis. They have the clout and the lobbying power to sway congress just as monsanto buys off politicians to get their anti gmo labeling laws passed or big pharma suppresses any non drug unpatentable natural/organic preventon/cures as there's no profit in health. Is why there's a walgreens on every corner. Monopolies rule us. They own us through congress and citizens united legislation is exactly what realtors want. I for one believe in alternatives and choices that's what free enterprise is all about. Competition is the name of the game which you won't find in dictatorships like russia, north korea or china. Their government also CONTROLS their people OR ELSE as you are witnessing in ukraine which was in existence long before russia.
No one I know is worried about competition from wholesalers.
competition from wholesalers LOL.. my wife closed 28 million last year. what wholesalers ??
- Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes4y
in my opinion, this post does not have the element of how to win friends and influence people.
best wishes @Rudy Ferrara in your Real Estate endeavors
- Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes4y
I like wholesalers they point me in the direction of good deal then I just call the real owner directly and lock it up at a lower price.
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