Is this an end to Wholesaling?

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Is this an end to Wholesaling?

Alan AsriantsBusiness Member
Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes

Bigger pockets just released an article that goes into Wholesaling and how it can become illegal to Wholesale Real Estate in South Carolina.

Here is the link for reference:

https://www.biggerpockets.com/blog/new-south-carolina-law-wo...

Wholesaling real estate seems like a great strategy but with that strategy, I've seen a lot of fishy characters who promote things that aren't true, lie to sellers directly, lie to Buyers and intentionally misrepresent information. Some of this misrepresented information includes things like after repair values, repair costs, rental comps and more. 

I have even encountered wholesalers who push properties with title issues onto buyers that are not knowledgeable enough to understand that this issue could be a very serious problem. 

A lot of the pitch that wholesalers make to sellers is that they were going to be buying a property with cash, even though they have no cash. So if they don't end up finding a buyer to reassign the contract to, they just lied to the seller and wasted their time. 

Again, this is not to bash on all wholesalers, because I do believe that there are some decent people out there. That being said, the majority of my experience comes from people who are pushy salesman who try to get you to buy something. 

At the end of the day, wholesaling real estate is like getting a net listing for a real estate agent. Except the real estate agent discloses that they will be making the difference upfront and not lying to the seller about buying their property for cash. 

That being said, in many states and jurisdictions net listings are actually illegal. 

My personal opinion was that a lot of this Wholesaling activity couldn't go on much longer. There had to be a breaking point, where unlicensed and unaccredited individuals could be handling real estate transactions. Lots of these individuals didn't have mentors or licensed professionals to help guide them through a transaction process. And on top of that I have seen files were there has been over five wholesalers, making a cut from the sale of a property. 

So before that property went into the buyers hands it went through five other individuals. They were all making money on this transaction, and likely not being transparent with the original owner. 

I remember, speaking directly with wholesalers, who would tell me not to disclose that a profit is being made. 

Look, I respect the hustle. I am all for individuals trying to make their way in the Real Estate sphere. But there has to be a way that is more transparent with individuals. We can't have a large amount of unregulated people, pushing values, and figures onto the end consumer who will be the one that's really suffering at the end of the road. 

To extend an olive branch there are plenty of bad real estate agents that also push things onto their clients, but those individuals work under a broker who carries a fiduciary duty to their client. Here there are no licenses regulations or implemented ethics. 

What are your thoughts? 

[email protected]267-767-0111
Alan Asriants - New Century Real Estate 590 Reviews
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Will GastonPro Member
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
2y

@Alan Asriants there is a ton of nuance to these situations, but I am personally done with wholesalers who require me to tell an owner that I am their "business partner."

Transparency is best for all those acting in good faith.

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  • Chris Williams
    Wholesaler · Member since 2024 · 99 posts · 39 votes
    2y
    Quote from @Alan Asriants:
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    Quote from @Doug Smith:

    Good Post, @Alan Asriants. From a lender's perspective, we're also seeing a lot of greed with some wholesalers raising their spread to the point that the math doesn't work for the end buyer. For instance, we had an application today where the wholesaler got a home under contract for $200k and then put a $50K mark-up on it to sell it to the "C" buyer for $250K. The math didn't work at $250K, but it works at $222K. They are sticking to their full $50K. We as a lender are passing on the deal. If you're a wholesaler, one much understand that a rising tide raises all ships. If you're end buyer can't get the numbers to work, you'll likely have no deal anyway. We used to do a ton of wholesale deals, but the spreads are getting out of hand. 


    Doug the big issue to me is as a cash buyer  I do not get title insurance for the amount of the assignment fee.. I insist on it some title companies will allow it others wont.. its a big issue and I am sure many buyers out there who pay cash have no clue when they pay 250k for a property and the assingment fee is 50k they are only getting 200k in title insurance.. So if title is buggered and one has to make a claim and I seem to have to make about 1 a year with these deals coming through wholesalers if you dont have title insurance that includes the assignment fee you will lose that money.

     Jay, why are you buying anything from wholesalers? Why don't you go out and find the sellers who own property directly, so you can buy from individual homeowners and cut the middleman out? 

    Well because I am a JV partner ( I am the Money) and I live in Oregon and do these deals in 10 states.. So we get them from all sources  MLS  courthouse steps  and of course wholesalers.. And we pay cash for everything.  Thats why I was commenting on the title insurance issues which your average investor probably has no clue. 

    I get it. But if I were you and had such a negative perception of wholesalers, or any specific wholesale deal where I can't get a title fully insured, I would simply forego the assets offered by wholesaler/s. Every day I go buy things for my household I decide whether the price I pay for an item is worth it or not. If it's not, or if purchase is too risky and costly, I simply don't buy it. 

    As to assignment fee, the average is said to be $10,000, with actual fee ranging from $2,000 to $50,000 or more. It all depends on numbers. Let's assume I , as a wholesaler, after netting $2000 per deal x 20 deals I closed in an entire year, stumbled upon certain property in town A. I run comps with my agent and they come at $450,000. I have full report drawn from MLS. That's my ARV. I deduct 30% and arrive at 315K. I hire a contractor to do accurate estimate of repairs and they quote $45,000. That brings the total down to $270,000. Suppose I want to make $10,000 , so I am ready to write a contract for $260,000. That's my MAO. The seller is motivated and says they want to get out of that property ASAP and will give it to anyone who pays them $220,000. $270,000 is a fair price for that property for an investor. I run my numbers, I know the market, I know the ARV. If I send this property to my buyers I will have three people next day wanting to pay cash to buy it at $270,000. Suppose you, as an investor, also find out (through my RE agent) about that property and want to buy it. Do you think I should assign it to you for less than $270,000, so you can get full title insurance on it, while three other buyers are willing to buy it for 270K with no questions asked (and aware of the issue with title insurance)? How much should I assign it to you for? $230K? And forego other investors/buyers? If yes, please tell me why should I consider it a fair deal and give that contract to you, knowing that this house has $450K ARV after $45K spent on rehab/renovation? What I think is fair is for you to do what I did, to find that exact house or similar property on your own, close the deal at $220K and not deal with me at all. But if you go through me, then I am entitled to my fair share. You didn't pay me to work the entire year, driving one town after another, putting up signs, making cold calls, networking, paying for local ads to make $2000 on each deal I netted prior to this $50K gem. Why should I give it to you for less than it's worth in a wholesale market?


    Correct if the title company you were using would not give me insurance sufficient to cover your fee I would not buy it or fund it for one of my JV Partners.. Risk is not worth it.. We have no shortage of deals so this would just be another one in our pipeline nothing special.. And if your other TRUE cash buyers were not smart enough to know about title insurance then thats one them. I suspect a lot of your buyers to most of your buyers are getting HML Loans in that case title insurance is for the amount of the loan and if the loan included our fee then they are insured.. I am sure these are issues your probably just not experienced enough to know of.

    The reality is the writing is on the wall states are after NON licensed wholesaling assigning just is what it is.. the fact that you would make 50k on a 220k sale when a brokerage fee would be 15k.. thats 35k that is being taken from a seller who probably knows no better or has just been lied to by the wholesaler as to the real value.. and that is what the law makers and regulators are focused on.. 

     The first part of your post makes sense and I find nothing to disagree with. It's a free market, no body can force anybody to buy or sell anything. If the product/contract/service I offer is not suitable to you then I don't want you to be my customer. We both can happily part our ways under free market conditions.

    But the second part of your post implies that all sellers are idiots, or that I (or State) is a nanny that must make decisions for mentally deranged sellers , all of whom have an IQ of 10 years old child. I don't believe this to be true. On my part, I would avoid to close any transaction with someone who is handicapped, has IQ of 10 years old child and is unable to read and understand the contract they are signing. After all, if someone was clinically handicapped and not able to understand and consent to terms of the legal agreement, then the agreement itself could be declared null and void in the court of law. 

    I will be dealing with adults, not handicapped individuals. And it's their responsibility to figure what they want to ask for their property. I don't run charity, I don't run educational non-profit classes. By the way, that's one of the reasons I don't want to touch pre-foreclosures, with accounts delinquent for 60 days. Some wholesalers do, they go and offer to help sellers to stay in their homes, educate them about loss mitigation , ask if seller needs help with it and etc., before seller begs them to just rid them of their house. I will have none of it. It's none of my concern to educate or baby sit another adult in my state. No one did for to me, except for my parents, and I have no intention to parent strangers. But once I have an adult, with full cognitive abilities, who is motivated to sell and get out of that property for MAO or less, rest assured I will make my offer on that property and if they accept it I will write a contract. Let them State AG's come after me in droves, there is no crime in making an offer to someone who owns the property to buy it from them. It's marketing to public that is illegal and I have no intention to sell dilapidated , dirty , stinky and full of trash property to an end buyer in MD or anywhere. I won't sell it to investor either, I will simply secure my interest in the contract. So, which part of it is illegal or wrong? You could say I am taking it from seller if I had a contract for 220K and paid seller 185K. That would be stealing from a seller. But if seller is entitled to get more, then who is forcing them to give their property to me for 220K? Who is stopping them from finding you or other investor on their own and getting full $270K in their pocket? I certainly don't. Regulators and law makers in these blue states couldn't care less about the sellers. If they did they would have better economic policies , create safe neighborhoods and investor/business friendly atmosphere, to make their citizens prosper and able to afford the houses they live in, instead of losing it to banks in foreclosures. No, it's not the sellers they care about. They care about eating all the pie by themselves and sharing it with those who finance their campaigns and free vacations, that's what those law makers really care about. And while at it they will make sure there will be more poverty , more foreclosures and less opportunities for average Joe to make a living here. We all know the drill. I am just glad that we have 50 States and not all of them are blue and purple. So, we can still focus on doing business, even if it means we have to move out of blue and into a red state in the near future.


     so Eric you have not actually done any deals it sounds like.. U understand the 70% minus rehab costs those numbers have been going around for a long time.. its pretty tough out there right now but hopefully you can make it work.. although I always wonder why those that want to sell real estate  ( that is what your doing at the end of the day bringing a buyer and seller together) why you dont just get in the game with a license and make a career of it.. if your any good at sales and can stick to it can be a very rewarding occupation.. wholesalers they dont last very long unless they are very well capitalized and vertically integrated. 

    Good question, Jay. For couple of reasons. First, becoming REA requires 60 hours of schooling , and then you are stuck with less than 3% commission per transaction (see below link with average rates of REA's compensation), and tons of regulations on top of it while competing with hundreds of other realtors on MLS. It's just not worth doing it in my opinion. It works well for those who have been doing it for decades, but it may take at least a decade to get anywhere as REA.

    Becoming a broker takes 3 years in MD after becoming REA. You can't apply and become a broker without those 3 years under your belt. And then you split commissions with agents and have a cap limiting what you can earn on each transaction regardless of the deal you struck.  How is this fair to the broker?))

    After much research and talking to people who did it all (running crews/flipping, owning to rent/passive investment, brokering, selling real estate as agents and etc.). I concluded that wholesaling is best to start with. Gradually, if you are able to make it work, you can explore flipping, owning to rent and other options to build wealth. But none offers a quick turn around and cash flow, with the least amount of headache and financial risks (not to confuse with the least amount of WORK),  as wholesaling. It's just a good stepping stone when you enter the world of RE investment.

    LINK: https://listwithclever.com/average-real-estate-commission-rate/maryland/

    The average total real estate agent commission rate in Maryland is 5.34% of the final sale price. Based on the latest median home sale price in Maryland ($418,534), that translates to a total cost of roughly $22,350.

    Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Maryland, the average listing agent fee is 2.76%, while the average buyer’s agent fee is 2.58%.

    Real estate agent commissions make up a significant portion of the closing costs for Maryland home sellers. But you don't have to pay the full 5.34% to a traditional agent. If you're selling a home in Maryland, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $7,366 on average.


     this is why wholesale guru's can sell 30k packages as people drink the cool aid basically verbatim of what you just said.. Any way like I said good luck.. 


     Thank you. But from what I understand in wholesaling it's not so much luck but consistent work, good discipline, persistence and ability to analyze deal that deliver results. Discipline and consistent work would probably top the list, as analyzing the deal doesn't take much brain power and effort. Negotiating comes naturally once you properly analyze the deal.

    The gurus are another subject. May be they are the ones who should be outlawed. There is absolutely nothing one can learn in this business worth paying 30K. The rules of the game are simple, can be read and understood in less than a day. It's amount of WORK and CONCENTRATION that will make a difference between make or break, and no GURU can make you stick to your regimen and do something persistently and systematically if you can't make yourself do it. 


     The issue is that many wholesalers falsely advertise themselves, lie, or keep seller in the dark to make the deal work. They lose deals unfortunately when they are transparent 

     A lot of people are stupid. Not just house owners/sellers, but people in general. 15 years ago I was in reverse logistics/liquidation business. I was able to consistently buy and then liquidate certain number of pallets/goods through the channel I have established. I would go to warehouses, negotiate/make an offer on a truckload of goods and then purchase one pallet at the time to help miserable seller to get rid of it. I never spent fortune to fill my warehouse with truckloads of goods, but I was buying them at the rate I could liquidate them and as long as I could liquidate them. Obviously, I profited handsomely while doing it. And what I recall is that out of 10-15 warehouses I dealt with ONLY TWO were owned by decent men who knew how to do business. One was a Chinese owned in NYC and another was owned by Hasidic Jew in New Jersey. These two were grateful to me that I was helping them clean their warehouse and get rid of their shittiest products that no one was willing to buy from them. All the rest grew resentful, angry and jealous when they saw how quickly I was moving their pallets. They were angry and resentful that I was making money on the trash that was sitting in their warehouses forever and that they couldn't sell to anyone on Earth. They would start playing games, sometimes pretending that they were not available or able to deliver goods. At others they would ghost me. Or, worst of all, try to go behind my back and find the distributor/seller I was dealing with, to cut me out of the deal. If I asked them why were they being so idiotic (of course in milder, non insulting terms), their answer would be "it's a dog eat dog town". Idiots! One of them lost the business and money couple of years later. I don't know what happened to others. But the point is, I am very well familiar with this idiotic type of product owner who is NEVER able to sell his goods, but gets angry and resentful at you if you help him to, because he thinks he is entitled to get what you get just because it's his goods that you found him a buyer for. I hope to spot sellers like that during my fist contact and send them to kick rocks and forever live in the $*it they are, with no help coming from me to get them rid of their property. 


    Nothing wrong with buying the property and closing on it then selling it for more. That is true wholesaling. 

    But flipping contracts and tying people up into deals they are blind about is a concern

    I agree that people often times dont value your connections and are greedy to find out you can sell something for more. Best to just not work with those kinds of people. Your connections and time are certainly worth $$$

    Agreed. I think that the buy and resell model is going to force a lot of wholesalers to actually become business owners and operate as a business and have capital. 

     I think it is the right thing tbh. That being said I will admit that covering transfer taxes both times can hurt your bottom line. 


     It is all in the cost of doing business lol 

    0Reply
  • Chris Williams
    Wholesaler · Member since 2024 · 99 posts · 39 votes
    2y
    Quote from @Alan Asriants:
    Quote from @Alan Asriants:
    Quote from @Chris Williams:
    Quote from @Alan Asriants:
    Quote from @Account Closed:
    Quote from @Alan Asriants:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Doug Smith:

    Good Post, @Alan Asriants. From a lender's perspective, we're also seeing a lot of greed with some wholesalers raising their spread to the point that the math doesn't work for the end buyer. For instance, we had an application today where the wholesaler got a home under contract for $200k and then put a $50K mark-up on it to sell it to the "C" buyer for $250K. The math didn't work at $250K, but it works at $222K. They are sticking to their full $50K. We as a lender are passing on the deal. If you're a wholesaler, one much understand that a rising tide raises all ships. If you're end buyer can't get the numbers to work, you'll likely have no deal anyway. We used to do a ton of wholesale deals, but the spreads are getting out of hand. 


    Doug the big issue to me is as a cash buyer  I do not get title insurance for the amount of the assignment fee.. I insist on it some title companies will allow it others wont.. its a big issue and I am sure many buyers out there who pay cash have no clue when they pay 250k for a property and the assingment fee is 50k they are only getting 200k in title insurance.. So if title is buggered and one has to make a claim and I seem to have to make about 1 a year with these deals coming through wholesalers if you dont have title insurance that includes the assignment fee you will lose that money.

     Jay, why are you buying anything from wholesalers? Why don't you go out and find the sellers who own property directly, so you can buy from individual homeowners and cut the middleman out? 

    Well because I am a JV partner ( I am the Money) and I live in Oregon and do these deals in 10 states.. So we get them from all sources  MLS  courthouse steps  and of course wholesalers.. And we pay cash for everything.  Thats why I was commenting on the title insurance issues which your average investor probably has no clue. 

    I get it. But if I were you and had such a negative perception of wholesalers, or any specific wholesale deal where I can't get a title fully insured, I would simply forego the assets offered by wholesaler/s. Every day I go buy things for my household I decide whether the price I pay for an item is worth it or not. If it's not, or if purchase is too risky and costly, I simply don't buy it. 

    As to assignment fee, the average is said to be $10,000, with actual fee ranging from $2,000 to $50,000 or more. It all depends on numbers. Let's assume I , as a wholesaler, after netting $2000 per deal x 20 deals I closed in an entire year, stumbled upon certain property in town A. I run comps with my agent and they come at $450,000. I have full report drawn from MLS. That's my ARV. I deduct 30% and arrive at 315K. I hire a contractor to do accurate estimate of repairs and they quote $45,000. That brings the total down to $270,000. Suppose I want to make $10,000 , so I am ready to write a contract for $260,000. That's my MAO. The seller is motivated and says they want to get out of that property ASAP and will give it to anyone who pays them $220,000. $270,000 is a fair price for that property for an investor. I run my numbers, I know the market, I know the ARV. If I send this property to my buyers I will have three people next day wanting to pay cash to buy it at $270,000. Suppose you, as an investor, also find out (through my RE agent) about that property and want to buy it. Do you think I should assign it to you for less than $270,000, so you can get full title insurance on it, while three other buyers are willing to buy it for 270K with no questions asked (and aware of the issue with title insurance)? How much should I assign it to you for? $230K? And forego other investors/buyers? If yes, please tell me why should I consider it a fair deal and give that contract to you, knowing that this house has $450K ARV after $45K spent on rehab/renovation? What I think is fair is for you to do what I did, to find that exact house or similar property on your own, close the deal at $220K and not deal with me at all. But if you go through me, then I am entitled to my fair share. You didn't pay me to work the entire year, driving one town after another, putting up signs, making cold calls, networking, paying for local ads to make $2000 on each deal I netted prior to this $50K gem. Why should I give it to you for less than it's worth in a wholesale market?


    Correct if the title company you were using would not give me insurance sufficient to cover your fee I would not buy it or fund it for one of my JV Partners.. Risk is not worth it.. We have no shortage of deals so this would just be another one in our pipeline nothing special.. And if your other TRUE cash buyers were not smart enough to know about title insurance then thats one them. I suspect a lot of your buyers to most of your buyers are getting HML Loans in that case title insurance is for the amount of the loan and if the loan included our fee then they are insured.. I am sure these are issues your probably just not experienced enough to know of.

    The reality is the writing is on the wall states are after NON licensed wholesaling assigning just is what it is.. the fact that you would make 50k on a 220k sale when a brokerage fee would be 15k.. thats 35k that is being taken from a seller who probably knows no better or has just been lied to by the wholesaler as to the real value.. and that is what the law makers and regulators are focused on.. 

     The first part of your post makes sense and I find nothing to disagree with. It's a free market, no body can force anybody to buy or sell anything. If the product/contract/service I offer is not suitable to you then I don't want you to be my customer. We both can happily part our ways under free market conditions.

    But the second part of your post implies that all sellers are idiots, or that I (or State) is a nanny that must make decisions for mentally deranged sellers , all of whom have an IQ of 10 years old child. I don't believe this to be true. On my part, I would avoid to close any transaction with someone who is handicapped, has IQ of 10 years old child and is unable to read and understand the contract they are signing. After all, if someone was clinically handicapped and not able to understand and consent to terms of the legal agreement, then the agreement itself could be declared null and void in the court of law. 

    I will be dealing with adults, not handicapped individuals. And it's their responsibility to figure what they want to ask for their property. I don't run charity, I don't run educational non-profit classes. By the way, that's one of the reasons I don't want to touch pre-foreclosures, with accounts delinquent for 60 days. Some wholesalers do, they go and offer to help sellers to stay in their homes, educate them about loss mitigation , ask if seller needs help with it and etc., before seller begs them to just rid them of their house. I will have none of it. It's none of my concern to educate or baby sit another adult in my state. No one did for to me, except for my parents, and I have no intention to parent strangers. But once I have an adult, with full cognitive abilities, who is motivated to sell and get out of that property for MAO or less, rest assured I will make my offer on that property and if they accept it I will write a contract. Let them State AG's come after me in droves, there is no crime in making an offer to someone who owns the property to buy it from them. It's marketing to public that is illegal and I have no intention to sell dilapidated , dirty , stinky and full of trash property to an end buyer in MD or anywhere. I won't sell it to investor either, I will simply secure my interest in the contract. So, which part of it is illegal or wrong? You could say I am taking it from seller if I had a contract for 220K and paid seller 185K. That would be stealing from a seller. But if seller is entitled to get more, then who is forcing them to give their property to me for 220K? Who is stopping them from finding you or other investor on their own and getting full $270K in their pocket? I certainly don't. Regulators and law makers in these blue states couldn't care less about the sellers. If they did they would have better economic policies , create safe neighborhoods and investor/business friendly atmosphere, to make their citizens prosper and able to afford the houses they live in, instead of losing it to banks in foreclosures. No, it's not the sellers they care about. They care about eating all the pie by themselves and sharing it with those who finance their campaigns and free vacations, that's what those law makers really care about. And while at it they will make sure there will be more poverty , more foreclosures and less opportunities for average Joe to make a living here. We all know the drill. I am just glad that we have 50 States and not all of them are blue and purple. So, we can still focus on doing business, even if it means we have to move out of blue and into a red state in the near future.


     so Eric you have not actually done any deals it sounds like.. U understand the 70% minus rehab costs those numbers have been going around for a long time.. its pretty tough out there right now but hopefully you can make it work.. although I always wonder why those that want to sell real estate  ( that is what your doing at the end of the day bringing a buyer and seller together) why you dont just get in the game with a license and make a career of it.. if your any good at sales and can stick to it can be a very rewarding occupation.. wholesalers they dont last very long unless they are very well capitalized and vertically integrated. 

    Good question, Jay. For couple of reasons. First, becoming REA requires 60 hours of schooling , and then you are stuck with less than 3% commission per transaction (see below link with average rates of REA's compensation), and tons of regulations on top of it while competing with hundreds of other realtors on MLS. It's just not worth doing it in my opinion. It works well for those who have been doing it for decades, but it may take at least a decade to get anywhere as REA.

    Becoming a broker takes 3 years in MD after becoming REA. You can't apply and become a broker without those 3 years under your belt. And then you split commissions with agents and have a cap limiting what you can earn on each transaction regardless of the deal you struck.  How is this fair to the broker?))

    After much research and talking to people who did it all (running crews/flipping, owning to rent/passive investment, brokering, selling real estate as agents and etc.). I concluded that wholesaling is best to start with. Gradually, if you are able to make it work, you can explore flipping, owning to rent and other options to build wealth. But none offers a quick turn around and cash flow, with the least amount of headache and financial risks (not to confuse with the least amount of WORK),  as wholesaling. It's just a good stepping stone when you enter the world of RE investment.

    LINK: https://listwithclever.com/average-real-estate-commission-rate/maryland/

    The average total real estate agent commission rate in Maryland is 5.34% of the final sale price. Based on the latest median home sale price in Maryland ($418,534), that translates to a total cost of roughly $22,350.

    Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Maryland, the average listing agent fee is 2.76%, while the average buyer’s agent fee is 2.58%.

    Real estate agent commissions make up a significant portion of the closing costs for Maryland home sellers. But you don't have to pay the full 5.34% to a traditional agent. If you're selling a home in Maryland, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $7,366 on average.


     this is why wholesale guru's can sell 30k packages as people drink the cool aid basically verbatim of what you just said.. Any way like I said good luck.. 


     Thank you. But from what I understand in wholesaling it's not so much luck but consistent work, good discipline, persistence and ability to analyze deal that deliver results. Discipline and consistent work would probably top the list, as analyzing the deal doesn't take much brain power and effort. Negotiating comes naturally once you properly analyze the deal.

    The gurus are another subject. May be they are the ones who should be outlawed. There is absolutely nothing one can learn in this business worth paying 30K. The rules of the game are simple, can be read and understood in less than a day. It's amount of WORK and CONCENTRATION that will make a difference between make or break, and no GURU can make you stick to your regimen and do something persistently and systematically if you can't make yourself do it. 


     The issue is that many wholesalers falsely advertise themselves, lie, or keep seller in the dark to make the deal work. They lose deals unfortunately when they are transparent 

     A lot of people are stupid. Not just house owners/sellers, but people in general. 15 years ago I was in reverse logistics/liquidation business. I was able to consistently buy and then liquidate certain number of pallets/goods through the channel I have established. I would go to warehouses, negotiate/make an offer on a truckload of goods and then purchase one pallet at the time to help miserable seller to get rid of it. I never spent fortune to fill my warehouse with truckloads of goods, but I was buying them at the rate I could liquidate them and as long as I could liquidate them. Obviously, I profited handsomely while doing it. And what I recall is that out of 10-15 warehouses I dealt with ONLY TWO were owned by decent men who knew how to do business. One was a Chinese owned in NYC and another was owned by Hasidic Jew in New Jersey. These two were grateful to me that I was helping them clean their warehouse and get rid of their shittiest products that no one was willing to buy from them. All the rest grew resentful, angry and jealous when they saw how quickly I was moving their pallets. They were angry and resentful that I was making money on the trash that was sitting in their warehouses forever and that they couldn't sell to anyone on Earth. They would start playing games, sometimes pretending that they were not available or able to deliver goods. At others they would ghost me. Or, worst of all, try to go behind my back and find the distributor/seller I was dealing with, to cut me out of the deal. If I asked them why were they being so idiotic (of course in milder, non insulting terms), their answer would be "it's a dog eat dog town". Idiots! One of them lost the business and money couple of years later. I don't know what happened to others. But the point is, I am very well familiar with this idiotic type of product owner who is NEVER able to sell his goods, but gets angry and resentful at you if you help him to, because he thinks he is entitled to get what you get just because it's his goods that you found him a buyer for. I hope to spot sellers like that during my fist contact and send them to kick rocks and forever live in the $*it they are, with no help coming from me to get them rid of their property. 


    Nothing wrong with buying the property and closing on it then selling it for more. That is true wholesaling. 

    But flipping contracts and tying people up into deals they are blind about is a concern

    I agree that people often times dont value your connections and are greedy to find out you can sell something for more. Best to just not work with those kinds of people. Your connections and time are certainly worth $$$

    Agreed. I think that the buy and resell model is going to force a lot of wholesalers to actually become business owners and operate as a business and have capital. 

     I think it is the right thing tbh. That being said I will admit that covering transfer taxes both times can hurt your bottom line. 


     But it will also get rid of those severely under-qualified who pressure people into buying dumps for a 5k profit. 


    Yea exactly and since I'm taking the property down off the market and listing it I can offer better terms than a wholesaler since I am ACTUALLY closing on it. I love the new regulations. 

    1Reply
  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 736 votes
    2y
    Quote from @Chris Williams:
    Quote from @Nate Marshall:

    Colorado will be next. 46-19 democrats to republicans. They just passed some extreme anti landlord laws. They are gearing up for some extreme anti wholesaling laws if they still have a 2-1 majority in 2025. 


     I am not sure the Democrats are the reason wholesaling is getting banned lol. It is getting banned because people have abused it. 


     In the case of Colorado my brother is in the state legislature so I have a bit of knowledge about what they are planning. 

    0Reply
  • Account Closed
    MD · Member since 2018 · 195 posts · 53 votes
    2y
    Quote from @Alan Asriants:
    Quote from @Alan Asriants:
    Quote from @Chris Williams:
    Quote from @Alan Asriants:
    Quote from @Account Closed:
    Quote from @Alan Asriants:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:
    Quote from @Jay Hinrichs:
    Quote from @Doug Smith:

    Good Post, @Alan Asriants. From a lender's perspective, we're also seeing a lot of greed with some wholesalers raising their spread to the point that the math doesn't work for the end buyer. For instance, we had an application today where the wholesaler got a home under contract for $200k and then put a $50K mark-up on it to sell it to the "C" buyer for $250K. The math didn't work at $250K, but it works at $222K. They are sticking to their full $50K. We as a lender are passing on the deal. If you're a wholesaler, one much understand that a rising tide raises all ships. If you're end buyer can't get the numbers to work, you'll likely have no deal anyway. We used to do a ton of wholesale deals, but the spreads are getting out of hand. 


    Doug the big issue to me is as a cash buyer  I do not get title insurance for the amount of the assignment fee.. I insist on it some title companies will allow it others wont.. its a big issue and I am sure many buyers out there who pay cash have no clue when they pay 250k for a property and the assingment fee is 50k they are only getting 200k in title insurance.. So if title is buggered and one has to make a claim and I seem to have to make about 1 a year with these deals coming through wholesalers if you dont have title insurance that includes the assignment fee you will lose that money.

     Jay, why are you buying anything from wholesalers? Why don't you go out and find the sellers who own property directly, so you can buy from individual homeowners and cut the middleman out? 

    Well because I am a JV partner ( I am the Money) and I live in Oregon and do these deals in 10 states.. So we get them from all sources  MLS  courthouse steps  and of course wholesalers.. And we pay cash for everything.  Thats why I was commenting on the title insurance issues which your average investor probably has no clue. 

    I get it. But if I were you and had such a negative perception of wholesalers, or any specific wholesale deal where I can't get a title fully insured, I would simply forego the assets offered by wholesaler/s. Every day I go buy things for my household I decide whether the price I pay for an item is worth it or not. If it's not, or if purchase is too risky and costly, I simply don't buy it. 

    As to assignment fee, the average is said to be $10,000, with actual fee ranging from $2,000 to $50,000 or more. It all depends on numbers. Let's assume I , as a wholesaler, after netting $2000 per deal x 20 deals I closed in an entire year, stumbled upon certain property in town A. I run comps with my agent and they come at $450,000. I have full report drawn from MLS. That's my ARV. I deduct 30% and arrive at 315K. I hire a contractor to do accurate estimate of repairs and they quote $45,000. That brings the total down to $270,000. Suppose I want to make $10,000 , so I am ready to write a contract for $260,000. That's my MAO. The seller is motivated and says they want to get out of that property ASAP and will give it to anyone who pays them $220,000. $270,000 is a fair price for that property for an investor. I run my numbers, I know the market, I know the ARV. If I send this property to my buyers I will have three people next day wanting to pay cash to buy it at $270,000. Suppose you, as an investor, also find out (through my RE agent) about that property and want to buy it. Do you think I should assign it to you for less than $270,000, so you can get full title insurance on it, while three other buyers are willing to buy it for 270K with no questions asked (and aware of the issue with title insurance)? How much should I assign it to you for? $230K? And forego other investors/buyers? If yes, please tell me why should I consider it a fair deal and give that contract to you, knowing that this house has $450K ARV after $45K spent on rehab/renovation? What I think is fair is for you to do what I did, to find that exact house or similar property on your own, close the deal at $220K and not deal with me at all. But if you go through me, then I am entitled to my fair share. You didn't pay me to work the entire year, driving one town after another, putting up signs, making cold calls, networking, paying for local ads to make $2000 on each deal I netted prior to this $50K gem. Why should I give it to you for less than it's worth in a wholesale market?


    Correct if the title company you were using would not give me insurance sufficient to cover your fee I would not buy it or fund it for one of my JV Partners.. Risk is not worth it.. We have no shortage of deals so this would just be another one in our pipeline nothing special.. And if your other TRUE cash buyers were not smart enough to know about title insurance then thats one them. I suspect a lot of your buyers to most of your buyers are getting HML Loans in that case title insurance is for the amount of the loan and if the loan included our fee then they are insured.. I am sure these are issues your probably just not experienced enough to know of.

    The reality is the writing is on the wall states are after NON licensed wholesaling assigning just is what it is.. the fact that you would make 50k on a 220k sale when a brokerage fee would be 15k.. thats 35k that is being taken from a seller who probably knows no better or has just been lied to by the wholesaler as to the real value.. and that is what the law makers and regulators are focused on.. 

     The first part of your post makes sense and I find nothing to disagree with. It's a free market, no body can force anybody to buy or sell anything. If the product/contract/service I offer is not suitable to you then I don't want you to be my customer. We both can happily part our ways under free market conditions.

    But the second part of your post implies that all sellers are idiots, or that I (or State) is a nanny that must make decisions for mentally deranged sellers , all of whom have an IQ of 10 years old child. I don't believe this to be true. On my part, I would avoid to close any transaction with someone who is handicapped, has IQ of 10 years old child and is unable to read and understand the contract they are signing. After all, if someone was clinically handicapped and not able to understand and consent to terms of the legal agreement, then the agreement itself could be declared null and void in the court of law. 

    I will be dealing with adults, not handicapped individuals. And it's their responsibility to figure what they want to ask for their property. I don't run charity, I don't run educational non-profit classes. By the way, that's one of the reasons I don't want to touch pre-foreclosures, with accounts delinquent for 60 days. Some wholesalers do, they go and offer to help sellers to stay in their homes, educate them about loss mitigation , ask if seller needs help with it and etc., before seller begs them to just rid them of their house. I will have none of it. It's none of my concern to educate or baby sit another adult in my state. No one did for to me, except for my parents, and I have no intention to parent strangers. But once I have an adult, with full cognitive abilities, who is motivated to sell and get out of that property for MAO or less, rest assured I will make my offer on that property and if they accept it I will write a contract. Let them State AG's come after me in droves, there is no crime in making an offer to someone who owns the property to buy it from them. It's marketing to public that is illegal and I have no intention to sell dilapidated , dirty , stinky and full of trash property to an end buyer in MD or anywhere. I won't sell it to investor either, I will simply secure my interest in the contract. So, which part of it is illegal or wrong? You could say I am taking it from seller if I had a contract for 220K and paid seller 185K. That would be stealing from a seller. But if seller is entitled to get more, then who is forcing them to give their property to me for 220K? Who is stopping them from finding you or other investor on their own and getting full $270K in their pocket? I certainly don't. Regulators and law makers in these blue states couldn't care less about the sellers. If they did they would have better economic policies , create safe neighborhoods and investor/business friendly atmosphere, to make their citizens prosper and able to afford the houses they live in, instead of losing it to banks in foreclosures. No, it's not the sellers they care about. They care about eating all the pie by themselves and sharing it with those who finance their campaigns and free vacations, that's what those law makers really care about. And while at it they will make sure there will be more poverty , more foreclosures and less opportunities for average Joe to make a living here. We all know the drill. I am just glad that we have 50 States and not all of them are blue and purple. So, we can still focus on doing business, even if it means we have to move out of blue and into a red state in the near future.


     so Eric you have not actually done any deals it sounds like.. U understand the 70% minus rehab costs those numbers have been going around for a long time.. its pretty tough out there right now but hopefully you can make it work.. although I always wonder why those that want to sell real estate  ( that is what your doing at the end of the day bringing a buyer and seller together) why you dont just get in the game with a license and make a career of it.. if your any good at sales and can stick to it can be a very rewarding occupation.. wholesalers they dont last very long unless they are very well capitalized and vertically integrated. 

    Good question, Jay. For couple of reasons. First, becoming REA requires 60 hours of schooling , and then you are stuck with less than 3% commission per transaction (see below link with average rates of REA's compensation), and tons of regulations on top of it while competing with hundreds of other realtors on MLS. It's just not worth doing it in my opinion. It works well for those who have been doing it for decades, but it may take at least a decade to get anywhere as REA.

    Becoming a broker takes 3 years in MD after becoming REA. You can't apply and become a broker without those 3 years under your belt. And then you split commissions with agents and have a cap limiting what you can earn on each transaction regardless of the deal you struck.  How is this fair to the broker?))

    After much research and talking to people who did it all (running crews/flipping, owning to rent/passive investment, brokering, selling real estate as agents and etc.). I concluded that wholesaling is best to start with. Gradually, if you are able to make it work, you can explore flipping, owning to rent and other options to build wealth. But none offers a quick turn around and cash flow, with the least amount of headache and financial risks (not to confuse with the least amount of WORK),  as wholesaling. It's just a good stepping stone when you enter the world of RE investment.

    LINK: https://listwithclever.com/average-real-estate-commission-rate/maryland/

    The average total real estate agent commission rate in Maryland is 5.34% of the final sale price. Based on the latest median home sale price in Maryland ($418,534), that translates to a total cost of roughly $22,350.

    Home sellers typically cover the total commission fee from their sale proceeds, which is split between the listing and buyer’s agents who handle the sale. In Maryland, the average listing agent fee is 2.76%, while the average buyer’s agent fee is 2.58%.

    Real estate agent commissions make up a significant portion of the closing costs for Maryland home sellers. But you don't have to pay the full 5.34% to a traditional agent. If you're selling a home in Maryland, you can use a discount broker to save on realtor fees. In fact, depending on your situation and the agents you work with, you could save 33% on realtor fees, or about $7,366 on average.


     this is why wholesale guru's can sell 30k packages as people drink the cool aid basically verbatim of what you just said.. Any way like I said good luck.. 


     Thank you. But from what I understand in wholesaling it's not so much luck but consistent work, good discipline, persistence and ability to analyze deal that deliver results. Discipline and consistent work would probably top the list, as analyzing the deal doesn't take much brain power and effort. Negotiating comes naturally once you properly analyze the deal.

    The gurus are another subject. May be they are the ones who should be outlawed. There is absolutely nothing one can learn in this business worth paying 30K. The rules of the game are simple, can be read and understood in less than a day. It's amount of WORK and CONCENTRATION that will make a difference between make or break, and no GURU can make you stick to your regimen and do something persistently and systematically if you can't make yourself do it. 


     The issue is that many wholesalers falsely advertise themselves, lie, or keep seller in the dark to make the deal work. They lose deals unfortunately when they are transparent 

     A lot of people are stupid. Not just house owners/sellers, but people in general. 15 years ago I was in reverse logistics/liquidation business. I was able to consistently buy and then liquidate certain number of pallets/goods through the channel I have established. I would go to warehouses, negotiate/make an offer on a truckload of goods and then purchase one pallet at the time to help miserable seller to get rid of it. I never spent fortune to fill my warehouse with truckloads of goods, but I was buying them at the rate I could liquidate them and as long as I could liquidate them. Obviously, I profited handsomely while doing it. And what I recall is that out of 10-15 warehouses I dealt with ONLY TWO were owned by decent men who knew how to do business. One was a Chinese owned in NYC and another was owned by Hasidic Jew in New Jersey. These two were grateful to me that I was helping them clean their warehouse and get rid of their shittiest products that no one was willing to buy from them. All the rest grew resentful, angry and jealous when they saw how quickly I was moving their pallets. They were angry and resentful that I was making money on the trash that was sitting in their warehouses forever and that they couldn't sell to anyone on Earth. They would start playing games, sometimes pretending that they were not available or able to deliver goods. At others they would ghost me. Or, worst of all, try to go behind my back and find the distributor/seller I was dealing with, to cut me out of the deal. If I asked them why were they being so idiotic (of course in milder, non insulting terms), their answer would be "it's a dog eat dog town". Idiots! One of them lost the business and money couple of years later. I don't know what happened to others. But the point is, I am very well familiar with this idiotic type of product owner who is NEVER able to sell his goods, but gets angry and resentful at you if you help him to, because he thinks he is entitled to get what you get just because it's his goods that you found him a buyer for. I hope to spot sellers like that during my fist contact and send them to kick rocks and forever live in the $*it they are, with no help coming from me to get them rid of their property. 


    Nothing wrong with buying the property and closing on it then selling it for more. That is true wholesaling. 

    But flipping contracts and tying people up into deals they are blind about is a concern

    I agree that people often times dont value your connections and are greedy to find out you can sell something for more. Best to just not work with those kinds of people. Your connections and time are certainly worth $$$

    Agreed. I think that the buy and resell model is going to force a lot of wholesalers to actually become business owners and operate as a business and have capital. 

     I think it is the right thing tbh. That being said I will admit that covering transfer taxes both times can hurt your bottom line. 


     But it will also get rid of those severely under-qualified who pressure people into buying dumps for a 5k profit. 


     If a wholesaler (or anyone) can pressure an investor to buy anything then that "investor" is an idiot who should never be in the business of investing in RE. Before COVID I was looking for a rehab property and almost got sold one by a licensed and registered in state database Real Estate Agent. She was my (buyer's) agent, not sellers'. She knew I was in it to make profit and was going to suffer severe loss if the property was a bad deal. She pushed it on me nevertheless. And I, being a newbie and an idiot, was willing to buy it. I had down payment and closing costs in cash ready. I was saved by HML who denied the loan, that was a free and valuable lesson. If the deal is bad don't buy it. Learn your trade before investing your money in RE.

    0Reply
  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    2y
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.

    0Reply
  • Account Closed
    MD · Member since 2018 · 195 posts · 53 votes
    2y
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.


     If what you say is malicious and untrue, with intent to harm, then of course it's a libel. You are correct in that one would have to speak it to make it  a slander. 

    To have standing in court one must prove a harm, not just that it's untrue and written with malicious intent. As I stated above, I don't care much either way, because I am not harmed by what someone says about me on this forum, without my full name or business banner to attack. And I am for freedom of the speech to the point that I will defend the rights of others to use ad hominess to attack me. So, you may continue. It just doesn't help to make what you say true and correct.  

    0Reply
  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    2y
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.


     If what you say is malicious and untrue, with intent to harm, then of course it's a libel. You are correct in that one would have to speak it to make it  a slander. 

    To have standing in court one must prove a harm, not just that it's untrue and written with malicious intent. As I stated above, I don't care much either way, because I am not harmed by what someone says about me on this forum, without my full name or business banner to attack. And I am for freedom of the speech to the point that I will defend the rights of others to use ad hominess to attack me. So, you may continue. It just doesn't help to make what you say true and correct.  


    Are you alleging I attacked you?  If so, my feelings are hurt, you harmed me.  I think it may be actionable slander.

    0Reply
  • Account Closed
    MD · Member since 2018 · 195 posts · 53 votes
    2y
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.


     If what you say is malicious and untrue, with intent to harm, then of course it's a libel. You are correct in that one would have to speak it to make it  a slander. 

    To have standing in court one must prove a harm, not just that it's untrue and written with malicious intent. As I stated above, I don't care much either way, because I am not harmed by what someone says about me on this forum, without my full name or business banner to attack. And I am for freedom of the speech to the point that I will defend the rights of others to use ad hominess to attack me. So, you may continue. It just doesn't help to make what you say true and correct.  


    Are you alleging I attacked you?  If so, my feelings are hurt, you harmed me.  I think it may be actionable slander.


     No standing in court = no case to bring. There are penalties for filing frivolous lawsuits in bad faith (those filed with malicious intent and not grounded on law). Simple as that. So, no viable case can be made against wholesalers  who operate legally in MD at the present time. 

    0Reply
  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
    2y
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.


     If what you say is malicious and untrue, with intent to harm, then of course it's a libel. You are correct in that one would have to speak it to make it  a slander. 

    To have standing in court one must prove a harm, not just that it's untrue and written with malicious intent. As I stated above, I don't care much either way, because I am not harmed by what someone says about me on this forum, without my full name or business banner to attack. And I am for freedom of the speech to the point that I will defend the rights of others to use ad hominess to attack me. So, you may continue. It just doesn't help to make what you say true and correct.  


    Are you alleging I attacked you?  If so, my feelings are hurt, you harmed me.  I think it may be actionable slander.


     No standing in court = no case to bring. There are penalties for filing frivolous lawsuits in bad faith (those filed with malicious intent and not grounded on law). Simple as that. So, no viable case can be made against wholesalers  who operate legally in MD at the present time. 


     Since I'm the party that was allegedly libeled, I'm the aggrieved party, and therefore have standing, I think.

    0Reply
  • Account Closed
    MD · Member since 2018 · 195 posts · 53 votes
    2y
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Peter Walther:
    Quote from @Account Closed:
    Quote from @Chris Williams:
    Quote from @Russell Brazil:

    Anyone with this amount of push back against such simple regulation as the requirement to be licensed, and thus the ability of the state to provide easy redress shady operators, makes me think that person is a shady operator.  Anyone who operates ethically has nothing to fear from the requirements to be licensed. Only those with something to hide have something to fear.


     This is what I been saying for a while now. 


     You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

    This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 


    I think technically it may be libel, which is written defamation while slander is spoken defamation.  With either, the defamed needs to prove damages and of course, if it's true, it ain't libel.


     If what you say is malicious and untrue, with intent to harm, then of course it's a libel. You are correct in that one would have to speak it to make it  a slander. 

    To have standing in court one must prove a harm, not just that it's untrue and written with malicious intent. As I stated above, I don't care much either way, because I am not harmed by what someone says about me on this forum, without my full name or business banner to attack. And I am for freedom of the speech to the point that I will defend the rights of others to use ad hominess to attack me. So, you may continue. It just doesn't help to make what you say true and correct.  


    Are you alleging I attacked you?  If so, my feelings are hurt, you harmed me.  I think it may be actionable slander.


     No standing in court = no case to bring. There are penalties for filing frivolous lawsuits in bad faith (those filed with malicious intent and not grounded on law). Simple as that. So, no viable case can be made against wholesalers  who operate legally in MD at the present time. 


     Since I'm the party that was allegedly libeled, I'm the aggrieved party, and therefore have standing, I think.


     I don't have time for trolls. If you have anything of substance to share please do so. Every day I spend close to 8 hours of my time learning about this trade and I have already started my marketing campaign. 

    0Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    2y

    Y'all still love to crap on wholesaling I see.

    It is still beyond me to go to a wholesaling forum where people are supposed to help, educate learn, and teach, instead you just to call wholesalers frauds, adding no value and or everything else said.

    I know for a fact that this is not true as we have been honest, and transparent upfront and the seller had no other way out then wholesale it and after explaining it to them even when given the option fo rus buying it in cash they decided to give wholesaling a try.

    The takeaway is this.

    You are not the seller, who the hell are you to decide for the seller that it is not for them?

    People, why go to a wholesaling group where people want to wholesale and stroke each other's ego, about how wholesalers are dirt?

    It is like joining a vegan club and crap on vegans because people are meant to eat meat. WHAT IS THE POINT?!

    Do you really not see how flat-out STOOOPID this is?

    Sheesh guys. Just stop!

    GO from the Wholesale haters anonymously club. Meet once a week, hell go 2ce a week. rent a hotel conference room and go have fun down talking wholesaling and wholesalers. Just don't do it here. So not the place.

    wow!

    just sad.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Jerryll Noorden:

    Y'all still love to crap on wholesaling I see.

    It is still beyond me to go to a wholesaling forum where people are supposed to help, educate learn, and teach, instead you just to call wholesalers frauds, adding no value and or everything else said.

    I know for a fact that this is not true as we have been honest, and transparent upfront and the seller had no other way out then wholesale it and after explaining it to them even when given the option fo rus buying it in cash they decided to give wholesaling a try.

    The takeaway is this.

    You are not the seller, who the hell are you to decide for the seller that it is not for them?

    People, why go to a wholesaling group where people want to wholesale and stroke each other's ego, about how wholesalers are dirt?

    It is like joining a vegan club and crap on vegans because people are meant to eat meat. WHAT IS THE POINT?!

    Do you really not see how flat-out STOOOPID this is?

    Sheesh guys. Just stop!

    GO from the Wholesale haters anonymously club. Meet once a week, hell go 2ce a week. rent a hotel conference room and go have fun down talking wholesaling and wholesalers. Just don't do it here. So not the place.

    wow!

    just sad.


    part of the Problem Jerryll its simply Illegal the way most do it.. I just took 5 hours of my CA Brokers CE and there was a whole page on unlicensed activity and EP ( equity purchasers) fines are stiff and on the EP the sellers have a 2 year right of redemption.. But of course folks dont actually read the laws ..  I think thats the major issue and with state after state finally clarifying and clearly denoting that bringing Buyer and Seller together for comp is brokering and a license is required.. then you get into disclosures and such like CA has.. its a dying method.. Although I still close many deals with wholesalers little fee's attached to them.. So its not you  its the states.
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    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Jerryll Noorden:

    Y'all still love to crap on wholesaling I see.

    It is still beyond me to go to a wholesaling forum where people are supposed to help, educate learn, and teach, instead you just to call wholesalers frauds, adding no value and or everything else said.

    I know for a fact that this is not true as we have been honest, and transparent upfront and the seller had no other way out then wholesale it and after explaining it to them even when given the option fo rus buying it in cash they decided to give wholesaling a try.

    The takeaway is this.

    You are not the seller, who the hell are you to decide for the seller that it is not for them?

    People, why go to a wholesaling group where people want to wholesale and stroke each other's ego, about how wholesalers are dirt?

    It is like joining a vegan club and crap on vegans because people are meant to eat meat. WHAT IS THE POINT?!

    Do you really not see how flat-out STOOOPID this is?

    Sheesh guys. Just stop!

    GO from the Wholesale haters anonymously club. Meet once a week, hell go 2ce a week. rent a hotel conference room and go have fun down talking wholesaling and wholesalers. Just don't do it here. So not the place.

    wow!

    just sad.


    part of the Problem Jerryll its simply Illegal the way most do it.. I just took 5 hours of my CA Brokers CE and there was a whole page on unlicensed activity and EP ( equity purchasers) fines are stiff and on the EP the sellers have a 2 year right of redemption.. But of course folks dont actually read the laws ..  I think thats the major issue and with state after state finally clarifying and clearly denoting that bringing Buyer and Seller together for comp is brokering and a license is required.. then you get into disclosures and such like CA has.. its a dying method.. Although I still close many deals with wholesalers little fee's attached to them.. So its not you  its the states.

     And I get that.

    And that is not at all what I am talking about.

    Reread this entire rant about wholesaling.

    One (small ) part is about the legalities of wholesaling.

    And a huge part is just crapping on wholesaling and wholesalers based on personal opinions that show how friggin daft most of responders are. If wholesaling was about intelligence most of you would fail miserably. The entire premise of this entire rant is just dumb,  as in stupid, as in no effort of using actual intelligence.

    Those are 2 entirely different topics.

    I am not going to argue or debate this boring age-old debate of the ethics of wholesaling much like I am not going to debate whether or not guns are evil. 

    It is a tool.

    I find it pathetic that most of will try to find ANY reason to crap on wholesaling even when the main topic was not even dealing with it. 

    Get it?

    Anyway, I should never have gotten myself involved because I am legitimately allergic to stupidity and ignorance.

    I get hives!

    So I am out.

    Take my advice, everyone. Go start a Wholesale Haters Anonymous club and keep stocking each other's egos.

    pathetic

    And BTW?

    If most people do wholesaling wrong and illegally, for crap's sake then educate the masses on how to do it right. Like I am doing.

    Instead what good does crapping on wholesalers do?

    No, really.

    Tell me.

    What good is this entire BS thread do .. to ANYONE?

    Is this just a quest for "likes" and votes? Is this a popularity contest to you all?

    Do something productive rather than this. I wish I had y'all's kind of time on my hands to waste it on absolute mind-numbing stupidity.

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Jerryll Noorden:
    Quote from @Jay Hinrichs:
    Quote from @Jerryll Noorden:

    Y'all still love to crap on wholesaling I see.

    It is still beyond me to go to a wholesaling forum where people are supposed to help, educate learn, and teach, instead you just to call wholesalers frauds, adding no value and or everything else said.

    I know for a fact that this is not true as we have been honest, and transparent upfront and the seller had no other way out then wholesale it and after explaining it to them even when given the option fo rus buying it in cash they decided to give wholesaling a try.

    The takeaway is this.

    You are not the seller, who the hell are you to decide for the seller that it is not for them?

    People, why go to a wholesaling group where people want to wholesale and stroke each other's ego, about how wholesalers are dirt?

    It is like joining a vegan club and crap on vegans because people are meant to eat meat. WHAT IS THE POINT?!

    Do you really not see how flat-out STOOOPID this is?

    Sheesh guys. Just stop!

    GO from the Wholesale haters anonymously club. Meet once a week, hell go 2ce a week. rent a hotel conference room and go have fun down talking wholesaling and wholesalers. Just don't do it here. So not the place.

    wow!

    just sad.


    part of the Problem Jerryll its simply Illegal the way most do it.. I just took 5 hours of my CA Brokers CE and there was a whole page on unlicensed activity and EP ( equity purchasers) fines are stiff and on the EP the sellers have a 2 year right of redemption.. But of course folks dont actually read the laws ..  I think thats the major issue and with state after state finally clarifying and clearly denoting that bringing Buyer and Seller together for comp is brokering and a license is required.. then you get into disclosures and such like CA has.. its a dying method.. Although I still close many deals with wholesalers little fee's attached to them.. So its not you  its the states.

     And I get that.

    And that is not at all what I am talking about.

    Reread this entire rant about wholesaling.

    One (small ) part is about the legalities of wholesaling.

    And a huge part is just crapping on wholesaling and wholesalers based on personal opinions that show how friggin daft most of responders are. If wholesaling was about intelligence most of you would fail miserably. The entire premise of this entire rant is just dumb,  as in stupid, as in no effort of using actual intelligence.

    Those are 2 entirely different topics.

    I am not going to argue or debate this boring age-old debate of the ethics of wholesaling much like I am not going to debate whether or not guns are evil. 

    It is a tool.

    I find it pathetic that most of will try to find ANY reason to crap on wholesaling even when the main topic was not even dealing with it. 

    Get it?

    Anyway, I should never have gotten myself involved because I am legitimately allergic to stupidity and ignorance.

    I get hives!

    So I am out.

    Take my advice, everyone. Go start a Wholesale Haters Anonymous club and keep stocking each other's egos.

    pathetic

    And BTW?

    If most people do wholesaling wrong and illegally, for crap's sake then educate the masses on how to do it right. Like I am doing.

    Instead what good does crapping on wholesalers do?

    No, really.

    Tell me.

    What good is this entire BS thread do .. to ANYONE?

    Is this just a quest for "likes" and votes? Is this a popularity contest to you all?

    Do something productive rather than this. I wish I had y'all's kind of time on my hands to waste it on absolute mind-numbing stupidity.


     My name is James and I have a problem with Illegally Brokering real estate, or as some of ya'll call it.......Wholesaling.....................Where are the doughnuts?

    0Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    2y

    Everyone is entitled to their OPINION.  I don’t find the exchange of different ideas and conflicting opinions stupid, nor am I upset if someone has an opinion that differs from mine.  That’s a part of what these forums are for.  @Jerryll Noorden, you use these forums to educate, and that’s fine but it also plays in nicely with the product/services you sell.  And I know your take on how to wholesale; for you it’s about transparency and honesty.  Unfortunately, that is NOT what’s being taught by most wholesaling  gurus.  Btw, do you operate in any states that require wholesalers be licensed? 

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Don Konipol:

    Everyone is entitled to their OPINION.  I don’t find the exchange of different ideas and conflicting opinions stupid, nor am I upset if someone has an opinion that differs from mine.  That’s a part of what these forums are for.  @Jerryll Noorden, you use these forums to educate, and that’s fine but it also plays in nicely with the product/services you sell.  And I know your take on how to wholesale; for you it’s about transparency and honesty.  Unfortunately, that is NOT what’s being taught by most wholesaling  gurus.  Btw, do you operate in any states that require wholesalers be licensed? 


    Iowa just made Assignments illegal .. closing attorneys that my clients use wont do them anymore. i have not dug into it there.. just reporting on a transaction I had last week that had this issue.
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    0Reply
  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area

     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a big deal playa.

    0Reply
  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, and the state allows it,  it is legal

    Assigning contracts is a legal form of doing business in the USA, just because real estate agents don't know how it works, and lack the knowledge, it does not mean it cannot be done

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, it is legal


     lol, but it's not bro. How are you unaware that almost every state in the USA is taking actionable steps against this type of unlicensed real estate Brokering.....?

    0Reply
  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, it is legal


     lol, but it's not bro. How are you unaware that almost every state in the USA is taking actionable steps against this type of unlicensed real estate Brokering.....?

     yes, there are some states that are starting to put restrictions, but they are not eliminating the practice of wholesaling, just how it is done

    If I am required to have a license to wholesale a property, I will get a license to wholesale, but the practice is not illegal.

    If I am required to disclose I am assigning the contract, it is not illegal to wholesale

    If I am required to close on the property myself, I will close on the property and put it for sale in the MLS, or sell it to another investor and that's not illegal, it is a form of wholesaling too

    So this is very funny hearing it from Agents and brokers

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, it is legal


     lol, but it's not bro. How are you unaware that almost every state in the USA is taking actionable steps against this type of unlicensed real estate Brokering.....?

     yes, there are some states that are starting to put restrictions, but they are not eliminating the practice of wholesaling, just how it is done

    If I am required to have a license to wholesale a property, I will get a license to wholesale, but the practice is not illegal.

    If I am required to disclose I am assigning the contract, it is not illegal to wholesale

    If I am required to close on the property myself, I will close on the property and put it for sale in the MLS, or sell it to another investor and that's not illegal, it is a form of wholesaling too

    So this is very funny hearing it from Agents and brokers


    Yes you are correct that closing and reselling is totally legal. In fact, that's technically what wholesaling actually is. However, what is being "taught" these days, and what you are talking about with the contract assignments is simply brokering real estate. It is illegal to broker real estate without a license in all 50 states my dude.
    0Reply
  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, it is legal


     lol, but it's not bro. How are you unaware that almost every state in the USA is taking actionable steps against this type of unlicensed real estate Brokering.....?

     yes, there are some states that are starting to put restrictions, but they are not eliminating the practice of wholesaling, just how it is done

    If I am required to have a license to wholesale a property, I will get a license to wholesale, but the practice is not illegal.

    If I am required to disclose I am assigning the contract, it is not illegal to wholesale

    If I am required to close on the property myself, I will close on the property and put it for sale in the MLS, or sell it to another investor and that's not illegal, it is a form of wholesaling too

    So this is very funny hearing it from Agents and brokers


    Yes you are correct that closing and reselling is totally legal. In fact, that's technically what wholesaling actually is. However, what is being "taught" these days, and what you are talking about with the contract assignments is simply brokering real estate. It is illegal to broker real estate without a license in all 50 states my dude.

    That is not 100% true. Real estate agents have been able to wholesale properties over the years, as long as they disclose to the seller their intentions and that they are acting as individuals and not representing the seller in any way as an agent, and they need to have the agreement signed.

    I agree, states are putting restrictions like South Carolina, we just have to adapt and follow the rules there and every state will have their own rules too, so as long as you follow what each state requires, wholesaling will be ok

    Real estate agents had the famous 6% commission, then they had to adapt and follow the new rules too

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    2y
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:
    Quote from @James Wise:
    Quote from @Hector Perez:

    This is a funny post with many agents and brokers about giving a bad reputation to wholesalers.

    It's like me talking badly about real estate agents taking advantage of sellers in a real estate agent forum.

    Just because there are a few bad apples, it does not mean everyone is the same.

    I have encountered bad real estate agents, but it does not mean all are the same.

    I have also encountered many horrible landlords, but it does not mean all landlords are the same

    Wholesaling is just a real estate strategy so don't be a haters when you see people succeed in this area


     Correction.......Wholesaling is an ILLEGAL real estate strategy. The illegal part is kind of a bid deal playa.

     Wholesaling is not illegal, you are assigning the rights of the contract to someone else or closing on the contract, then reselling the property to another entity (double closing)

    If the contract allows it, it is legal


     lol, but it's not bro. How are you unaware that almost every state in the USA is taking actionable steps against this type of unlicensed real estate Brokering.....?

     yes, there are some states that are starting to put restrictions, but they are not eliminating the practice of wholesaling, just how it is done

    If I am required to have a license to wholesale a property, I will get a license to wholesale, but the practice is not illegal.

    If I am required to disclose I am assigning the contract, it is not illegal to wholesale

    If I am required to close on the property myself, I will close on the property and put it for sale in the MLS, or sell it to another investor and that's not illegal, it is a form of wholesaling too

    So this is very funny hearing it from Agents and brokers


    Yes you are correct that closing and reselling is totally legal. In fact, that's technically what wholesaling actually is. However, what is being "taught" these days, and what you are talking about with the contract assignments is simply brokering real estate. It is illegal to broker real estate without a license in all 50 states my dude.

    That is not 100% true. Real estate agents have been able to wholesale properties over the years, as long as they disclose to the seller their intentions and that they are acting as individuals and not representing the seller in any way as an agent, and they need to have the agreement signed.

    I agree, states are putting restrictions like South Carolina, we just have to adapt and follow the rules there and every state will have their own rules too, so as long as you follow what each state requires, wholesaling will be ok

    Real estate agents had the famous 6% commission, then they had to adapt and follow the new rules too


     Actually you are wrong again. Licensed Agents should not be engaging in assignments or net listings. In doing this it makes it impossible for them to adhere to their fiduciary responsibility to the seller. If a licensed agent wants to truly wholesale, they need to buy close and then resell it. If they connect seller to a buyer without ever owning it, it's simply brokering while not adhering to their fiduciary duty to the seller.

    1Reply
  • Hector Perez
    Flipper/Rehabber · Houston, TX · Member since 2012 · 176 posts · 75 votes
    2y

    Every state is different, and I think you are an expert on your state no doubt about it, but you can not say it is illegal everywhere else, where I see licensed agents and brokers doing it all the time in other states

    So what you are saying is not 100% valid

    1Reply
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