Rental Property Investor · Member since 2021 · 423 posts · 190 votes
Never heard about it until yesterday and I’ve been studying real estate for the past 3 years and wholesaling for the past year.
Is it more for people that do sketchy things like not tell a seller up front that you’ll be assigning the contract or not having a network of cash buyer partners that you’re working with or not also doing rentals? What’s the most common reason for “cease and desist”s in regards to wholesaling?
The best thing to do is to be upfront with the seller. I have a few things I say that work for me, and my contract has it in bold that I do plan to market this property and could potentially assign it to another buyer. I go over that with the seller so they understand. Not sure what the laws are actually in Illinois, but if the seller is ok with me marketing the property, then what's the problem? The best thing to do is be prepared to double close and make sure the deal is in deep, deep discount and have a solid buyers list you can privately send deals to instead of blasting on social media.
Also, are you doing real estate and taking action or are you waiting for the perfect time and waiting until you have all the knowledge first? If you're waiting for the perfect time good luck; there's no such thing as the best time to have started was 10-15 years ago. The next best time is right now. and if you're waiting until you're fully knowledgable, then you won't take action hence 3 years later. But I don't know your story and won't presume to know. just my 2 cents.
Never heard about it until yesterday and I’ve been studying real estate for the past 3 years and wholesaling for the past year.
Is it more for people that do sketchy things like not tell a seller up front that you’ll be assigning the contract or not having a network of cash buyer partners that you’re working with or not also doing rentals? What’s the most common reason for “cease and desist”s in regards to wholesaling?
Selling the property instead of the contract. Acting as an agent though not licensed. Misrepresentation.
Never heard about it until yesterday and I’ve been studying real estate for the past 3 years and wholesaling for the past year.
Is it more for people that do sketchy things like not tell a seller up front that you’ll be assigning the contract or not having a network of cash buyer partners that you’re working with or not also doing rentals? What’s the most common reason for “cease and desist”s in regards to wholesaling?
In some states, such as Illinois, you are allowed to do one assignment per year without a license (Assignments being a method of wholesaling) If a person without a license is caught doing more than one deal the fine is $25K per incident and I imagine that person would receive a cease and desist order.
Never heard about it until yesterday and I’ve been studying real estate for the past 3 years and wholesaling for the past year.
Is it more for people that do sketchy things like not tell a seller up front that you’ll be assigning the contract or not having a network of cash buyer partners that you’re working with or not also doing rentals? What’s the most common reason for “cease and desist”s in regards to wholesaling?
In some states, such as Illinois, you are allowed to do one assignment per year without a license (Assignments being a method of wholesaling) If a person without a license is caught doing more than one deal the fine is $25K per incident and I imagine that person would receive a cease and desist order.
Yikes that's no bueno...a license to assign a contract? Ick..I'm double checking my regulations here! Thanks for sharing
The best thing to do is to be upfront with the seller. I have a few things I say that work for me, and my contract has it in bold that I do plan to market this property and could potentially assign it to another buyer. I go over that with the seller so they understand. Not sure what the laws are actually in Illinois, but if the seller is ok with me marketing the property, then what's the problem? The best thing to do is be prepared to double close and make sure the deal is in deep, deep discount and have a solid buyers list you can privately send deals to instead of blasting on social media.
Also, are you doing real estate and taking action or are you waiting for the perfect time and waiting until you have all the knowledge first? If you're waiting for the perfect time good luck; there's no such thing as the best time to have started was 10-15 years ago. The next best time is right now. and if you're waiting until you're fully knowledgable, then you won't take action hence 3 years later. But I don't know your story and won't presume to know. just my 2 cents.