Wholesalers required to have license in VA

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

2y

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

7e investments53 Reviews

[email protected]301-893-4635 Podcast Guest on Show #192

6 Reply

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

2y

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

District Invest Group545 Reviews

5 Reply

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

2y

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

I love when express homebuyers or Marketpro get a deal and these other wholesalers will just send that out, like you said and add $20k to it.

7e investments53 Reviews

[email protected]301-893-4635 Podcast Guest on Show #192

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

2y

Quote from @Chris Seveney:

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

I love when express homebuyers or Marketpro get a deal and these other wholesalers will just send that out, like you said and add $20k to it.

Had this wholesaler send me a deal on a property not that long ago. I personally know the seller. Of 10 tenants in the property 8 were not paying. Wholesaler advertised it as all tenants paying and on time. Called them on it, they insisted it was true, I said cool let me check with Joe (fake name), he's a friend of mine to confirm because he told me just a month ago 8 tenants wernt paying.

District Invest Group545 Reviews

Asif Kabani

Real Estate Agent · Central Virginia · Member since 2020 · 38 posts · 20 votes

2y

Honestly, the bar isn't set much higher by the majority of real estate agents. Obtaining a real estate salesperson license is relatively easy, thus the barrier to entry is nonexistent. The licensing process alone won't filter out the less dedicated individuals; it's the work that truly matters. Bob Marley once said, "You can fool some people some time, but you can't fool all of the people all the time." So, to my wholesaler friends, it's time to get up, stand up, get licensed, and put in the work. The licensing process for real estate requires fingerprinting, which should deter bad actors. We can only hope for better standards in the industry.

4 Reply

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes

2y

Colorado is about to do this. They are also looking at Sub To and fractional lending (gator). So expect more of this in these times. Not to get political but it is coming from one party.

Podcast Guest on Show #222

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

2y

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

IL passed this a few years ago and they allow 1 deal a year.. it will really be up to the licensee's Brokers to reel in the wholesaler that choose to get licensed. And I suspect many managing Brokers are going to be heavy handed with the wholesalers and their techniques which we all know includes miss statements white lies and other subterfuge.

JLH Capital Partners51 Review

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes

2y

The states that do this will have it in black and white. They are required to by what is in the legislation.

[email protected]301-893-4635 Podcast Guest on Show #192

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

2y

Quote from @Asif Kabani:

Honestly, the bar isn't set much higher by the majority of real estate agents. Obtaining a real estate salesperson license is relatively easy, thus the barrier to entry is nonexistent. The licensing process alone won't filter out the less dedicated individuals; it's the work that truly matters. Bob Marley once said, "You can fool some people some time, but you can't fool all of the people all the time." So, to my wholesaler friends, it's time to get up, stand up, get licensed, and put in the work. The licensing process for real estate requires fingerprinting, which should deter bad actors. We can only hope for better standards in the industry.

The goal of such types of legislation isnt to set the bar higher. It is to create an easier path for a consumer that has been screwed over in some fashion. By making the individual get licensed, now the consumer can go to state real estate commission, department of licensing, and state guarantee funds to seek restitution if they have been scammed.

So it is just about creating a situation where the consumer is treated fairly and honestly. If they are not, now they have much easier paths to seek restitution. Any wholesaler who acted in an honest manner has absolutely zero to worry about now. The ones who were shady as ****, they still will be, but now the consumer can fight back against them if theyve been screwed.

District Invest Group545 Reviews

5 Reply

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes

2y

Quote from @Russell Brazil:

Quote from @Asif Kabani:

Honestly, the bar isn't set much higher by the majority of real estate agents. Obtaining a real estate salesperson license is relatively easy, thus the barrier to entry is nonexistent. The licensing process alone won't filter out the less dedicated individuals; it's the work that truly matters. Bob Marley once said, "You can fool some people some time, but you can't fool all of the people all the time." So, to my wholesaler friends, it's time to get up, stand up, get licensed, and put in the work. The licensing process for real estate requires fingerprinting, which should deter bad actors. We can only hope for better standards in the industry.

The goal of such types of legislation isnt to set the bar higher. It is to create an easier path for a consumer that has been screwed over in some fashion. By making the individual get licensed, now the consumer can go to state real estate commission, department of licensing, and state guarantee funds to seek restitution if they have been scammed.

So it is just about creating a situation where the consumer is treated fairly and honestly. If they are not, now they have much easier paths to seek restitution. Any wholesaler who acted in an honest manner has absolutely zero to worry about now. The ones who were shady as ****, they still will be, but now the consumer can fight back against them if theyve been screwed.

Absolute truth on this. Accountability, Transparency and Protection, Otherwise it's time for the woodchipper.

Asif Kabani

Real Estate Agent · Central Virginia · Member since 2020 · 38 posts · 20 votes

2y

Quote from @Russell Brazil:

Quote from @Asif Kabani:

Honestly, the bar isn't set much higher by the majority of real estate agents. Obtaining a real estate salesperson license is relatively easy, thus the barrier to entry is nonexistent. The licensing process alone won't filter out the less dedicated individuals; it's the work that truly matters. Bob Marley once said, "You can fool some people some time, but you can't fool all of the people all the time." So, to my wholesaler friends, it's time to get up, stand up, get licensed, and put in the work. The licensing process for real estate requires fingerprinting, which should deter bad actors. We can only hope for better standards in the industry.

The goal of such types of legislation isnt to set the bar higher. It is to create an easier path for a consumer that has been screwed over in some fashion. By making the individual get licensed, now the consumer can go to state real estate commission, department of licensing, and state guarantee funds to seek restitution if they have been scammed.

So it is just about creating a situation where the consumer is treated fairly and honestly. If they are not, now they have much easier paths to seek restitution. Any wholesaler who acted in an honest manner has absolutely zero to worry about now. The ones who were shady as ****, they still will be, but now the consumer can fight back against them if theyve been screwed.

I understand the purpose of such legislation. Like most regulatory measures, it aims to establish a minimum standard rather than an exceptionally high bar. While funds are available for restitution, they are finite, so the fund serves as more of a safety net than a guaranteed fallback. Nonetheless, what makes this legislation favorable is its creation of a structured framework and accountability within the industry.

Cora Gilmore

Member since 2023 · 8 posts · 4 votes

2y

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

@Russell Brazil How are they all peddling the same property? I thought a wholesaler got the property under contract first then tried to find a buyer?

[email protected]301-893-4635 Podcast Guest on Show #192

Russell BrazilBusiness Member

Moderator

Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

2y

Quote from @Cora Gilmore:

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

@Russell Brazil How are they all peddling the same property? I thought a wholesaler got the property under contract first then tried to find a buyer?

Not sure if this is a serious question, or a tounge in cheek commentary?

If it is a real question....wholesalers engage in a practice called "daisy-chaining." The receive an email from another wholesaler marketing a property for say $500k. They then just copy that ad and send it out to their own email list for $510k. Then someone on that list sends it out to their list for $520k. Each person further down the line hoping they can scam their way in to get paid, and actually having zero idea who the actual contract holder is or who the seller is.

District Invest Group545 Reviews

5 Reply

Cora Gilmore

Member since 2023 · 8 posts · 4 votes

2y

@Russell Brazil it was an actual real question:) I appreciate the straight forward answer! I had never heard of that and honestly coming from being a Broker wrapping my head around wholesaling and how we can all work together has been very interesting !

David Ramirez

Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes

2y

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I hope so too!

That's one of the reasons I don't send email or sms blasts with my deals. I like to jump on a call before sharing details and can quickly tell if they are end buyers or just trying to daisy chain the deal.

You could always double close on the deal and won't have a problem.

David Ramirez

Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes

2y

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

And you ask them if they are direct to the seller and have the guts to say "Yes my partner" LOL

Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 737 votes

2y

Quote from @Russell Brazil:

Quote from @Cora Gilmore:

Quote from @Russell Brazil:

Quote from @Chris Seveney:

@Russell Brazil

Wow but I am glad states are finally doing this

Hopefully it weeds out 90% of the wholesalers who are really just peddlers

I'm hoping at the very least it lightens the load on my email inbox. Literally will get the same property from 15 different wholesalers, with each subsequent email increasing the price $10k from the previous email.

@Russell Brazil How are they all peddling the same property? I thought a wholesaler got the property under contract first then tried to find a buyer?

Not sure if this is a serious question, or a tounge in cheek commentary?

If it is a real question....wholesalers engage in a practice called "daisy-chaining." The receive an email from another wholesaler marketing a property for say $500k. They then just copy that ad and send it out to their own email list for $510k. Then someone on that list sends it out to their list for $520k. Each person further down the line hoping they can scam their way in to get paid, and actually having zero idea who the actual contract holder is or who the seller is.

And when 9 people get paid on the deal there is nothing left for the flipper! Then it becomes..

Hector Perez

Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes

2y

I know many wholesalers who are licensed agents, and the only thing they have to do is disclose they are real estate agents in the contract and they are not representing the seller in the transaction, but nothing else.

It will be interesting to see if in VA they will require additional disclosures or not

Jesse LeBlanc

Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes

2y

Just like Illinois, all one has to do is double close and not worry about being licensed. FOR NOW anyway...

I think what MIGHT make a little more of a difference is to enforce this law AND enforce what NC does, which is on a double closing the $ MUST be separate for each file. So no more pass through funding, requiring the wholesaler to bring their own capital or borrow funds to double close, then getting around the 1 assignment per year legally no problem.

Not sure that will even really be enforced unless the closing team refuses the business from a wholesaler. Then they'll just find another investor friendly closing team. It will however scare a lot of folks though as you're already seeing wholesalers panic in VA like they were in IL years ago. Now you don't hear about it much any more in IL, so in a few years it will be another state and then you won't hear anything about VA anymore.

Podcast Guest on Show #222

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

2y

Quote from @Jesse LeBlanc:

Just like Illinois, all one has to do is double close and not worry about being licensed. FOR NOW anyway...

I think what MIGHT make a little more of a difference is to enforce this law AND enforce what NC does, which is on a double closing the $ MUST be separate for each file. So no more pass through funding, requiring the wholesaler to bring their own capital or borrow funds to double close, then getting around the 1 assignment per year legally no problem.

Not sure that will even really be enforced unless the closing team refuses the business from a wholesaler. Then they'll just find another investor friendly closing team. It will however scare a lot of folks though as you're already seeing wholesalers panic in VA like they were in IL years ago. Now you don't hear about it much any more in IL, so in a few years it will be another state and then you won't hear anything about VA anymore.

Many states now require new funds and do not do pass through.. its the reason we all are in business us bridge lenders.. also I know in Oregon the title companies demand a full profit disclosure to the seller.. they don't want to be sued for participating in a secret or unconscionable profit act. I do a few transactional a year but the vast majority of what we do is wholetail.. buy it clean it resell it.. then of course you have full rehab.. But a lot of my clients that can get these better deals are now refinancing and keeping these and stacking inventory and when market conditions are such they can exit they will start selling and it makes sense hold them over 12 months and now you have a performing asset and you have cap gains instead of ordinary income.

Nothing stays the same in RE you adjust to market conditions.

JLH Capital Partners51 Review

Jesse LeBlanc

Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes

2y

@Jay Hinrichs I didn't know about Oregon, thank you for bringing that up.

I am also pushing more wholesalers to "wholetail" their deals or keep them when something makes sense! I also push wholesalers to create notes for their spreads vs double close or assign then get the investor to pay a little higher fee or interest for X years for the wholesaler to learn how to be a true investor and mailbox money. BUT RARELY do they want to learn this...

Podcast Guest on Show #222

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

2y

Quote from @Jesse LeBlanc:

@Jay Hinrichs I didn't know about Oregon, thank you for bringing that up.

I am also pushing more wholesalers to "wholetail" their deals or keep them when something makes sense! I also push wholesalers to create notes for their spreads vs double close or assign then get the investor to pay a little higher fee or interest for X years for the wholesaler to learn how to be a true investor and mailbox money. BUT RARELY do they want to learn this...

when rates got to 15 to 18% in the carter years.. to keep deals working I had to give my commission to the sellers and take back notes from them so they got some cash to induce them to sell .. and the sellers paid me monthly Usually half of the payment No interest until paid.. I took a personal note from the seller.. I lived off of those commission notes for first half of the 80s.. not always did i have to do that but I bet I stack up 100k or more of those notes and in early 80s that was real money LOL..

JLH Capital Partners51 Review

Jesse LeBlanc

Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes

2y

I can definitely see you doing that!! I love it when folks learn to adapt and create winning solutions. Get's the deals closed, created more referrals and happier clients with long term mailbox money for you! I LOVE IT

Nathaniel Irizarry

Lender · Member since 2023 · 29 posts · 6 votes

2y

Hey Christopher,

I provide EMD and Double closing funds for Wholesalers. Let me know if I can be of assistance to you. Thank you.