Can you wholesale in IL without a brokers license?

Question

Hey, I am interested in starting wholesaling in IL and found out that there is a law "preventing" wholesalers from doing business without a broker's license. Now I did some research and everyone has their explanations for what the law means. Some say the wholesaler needs a broker's license to do wholesale more than 1 deal every 12 months, and there is no way around it, and others say you can work with a licensed broker, and have them represent you, the wholesaler, in every deal you do. Please shed some light on this topic, especially if you currently are wholesaling in Illinois. Any help would be much appreciated!

Dave Kush · Answer

Double closing is legal in Illinois. Find lawyer that will work with you on them.

Dan Delcorio · Answer

@Jonathan Klemm I was specifically asking for Illinois. Although I am in Texas my partner/contractor is in Illinois. Mainly looking to make connections with those who can move wholesale deals in case we can’t fix and flip an opportunity/deal.

Jonathan Klemm · Answer

@Dan Delcorio - Was your question in your quote? Not sure what happened there.

I have many Chicago agents I could refer who could handle wholesale deals including myself, but not in Texas.

Marco Bario · Answer

I don't live in IL, and I'm by no means an attorney, but let me say this - when you wholesale, you're selling an assignment of the contract, which is personal property. You aren't representing either party; you aren't negotiating the price or terms between the buyer and the seller (if you are, stop doing this), and you aren't selling real estate.

Jonathan Klemm · Answer

Appreciate the tag @Paul De Luca!

I am by no means an attorney and to my limited knowledge I don't know of anyone who has gotten "caught" with the new illinois law, but my understanding is that you can not "Market" (aka sell side of wholesale) more than one property per year.

So if you had a licensed agent do the "marketing" of the property once it's under contract then you should be in the clear.

You can of course double close, but the law is more specific to the marketing of the property vs. how it's closed.

My suggestion @Andrii Sazhnev would be to find another wholesaler who has their broker's license to work with them while starting to get your license...in my opinion (if you have the time) it is worth it for anyone who is doing real estate full time to get there license - simply for the education and MLS access.

Paul De Luca · Answer

I've heard the same as you, 1 deal per year without a license. Maybe @Jonathan Klemm can correct me on that.

Johny Omaga · Answer

You might still be able to double close deals. Let me know if you need help with your deals.

Can you wholesale in IL without a brokers license?

Can you wholesale in IL without a brokers license?

Most Popular Reply

8 Replies