WHATS YOUR WHOLESALING PLAN WITH NEW LAWs
Most Popular Reply
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesQuote from @Kylie A.:
There are many new laws being implemented across different states, and I’m curious about yall game plan moving forward. With states becoming stricter, how are yall still managing to wholesale? What strategies are you using to navigate these changes?"
1. Requiring a real estate broker/salesman's license to operate as a wholesaler
and, or
2. Disclosures, or other restrictions on transacting with homeowners.
Requiring a real estate license can potentially be a “trap” for wholesaling, as real estate licensees may in in violation of their code of conduct by way of their wholesaling activities. For example if the states licensing code holds the licensee to an agency relationship with their client, then the wholesaler tying up a homeowners property for a below market price may be in violation. The dust has nowhere settled on wholesaling, but to be hones “wholesaling” is a misnomer. What we are really describing is “contract flipping”. Real wholesaling is buying something in bulk and or for a middleman’s price and then reselling at a retail price. The key is actually purchasing the goods or property in question, and not merely acting as a broker or agent. So, the theory goes, if wholesaling is actually NOT. wholesaling but brokering or agency, shouldn’t the “wholesaler” be required to have a broker or agency license?
Wholesaling really isn’t much of a problem with the larger, experienced and ethically run wholesalers. Most I know fully disclose what they’re doing, the risks to the homeowner as well as the benefits, and will actually tell the homeowner id\f they think the homeowner has a better option. In other words, they’re in it for the long run. The problems are with the inexperienced under capitalized people studying wholesaling strategies as put forth by a variety of guru/mentors and the temptation these people feel when they smell a profit.
26 Replies
- 1yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesWhile this is a good question, the answer is absolutely location specific. The majority of states have NOT enacted any rules, regulations or legislation that has altered the “wholesaling” landscape. The states that have fall into two broad categories
Quote from @Kylie A.:
There are many new laws being implemented across different states, and I’m curious about yall game plan moving forward. With states becoming stricter, how are yall still managing to wholesale? What strategies are you using to navigate these changes?"
1. Requiring a real estate broker/salesman's license to operate as a wholesaler
and, or
2. Disclosures, or other restrictions on transacting with homeowners.
Requiring a real estate license can potentially be a “trap” for wholesaling, as real estate licensees may in in violation of their code of conduct by way of their wholesaling activities. For example if the states licensing code holds the licensee to an agency relationship with their client, then the wholesaler tying up a homeowners property for a below market price may be in violation. The dust has nowhere settled on wholesaling, but to be hones “wholesaling” is a misnomer. What we are really describing is “contract flipping”. Real wholesaling is buying something in bulk and or for a middleman’s price and then reselling at a retail price. The key is actually purchasing the goods or property in question, and not merely acting as a broker or agent. So, the theory goes, if wholesaling is actually NOT. wholesaling but brokering or agency, shouldn’t the “wholesaler” be required to have a broker or agency license?
Wholesaling really isn’t much of a problem with the larger, experienced and ethically run wholesalers. Most I know fully disclose what they’re doing, the risks to the homeowner as well as the benefits, and will actually tell the homeowner id\f they think the homeowner has a better option. In other words, they’re in it for the long run. The problems are with the inexperienced under capitalized people studying wholesaling strategies as put forth by a variety of guru/mentors and the temptation these people feel when they smell a profit. - Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes1y
Quote from @Kylie A.:
There are many new laws being implemented across different states, and I’m curious about yall game plan moving forward. With states becoming stricter, how are yall still managing to wholesale? What strategies are you using to navigate these changes?"
Keep going till they shut it down, But then everyone will just get creative. SO many ways to " flip" a prop and get paid
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Don Konipol:
While this is a good question, the answer is absolutely location specific. The majority of states have NOT enacted any rules, regulations or legislation that has altered the “wholesaling” landscape. The states that have fall into two broad categoriesQuote from @Kylie A.:
There are many new laws being implemented across different states, and I’m curious about yall game plan moving forward. With states becoming stricter, how are yall still managing to wholesale? What strategies are you using to navigate these changes?"
1. Requiring a real estate broker/salesman's license to operate as a wholesaler
and, or
2. Disclosures, or other restrictions on transacting with homeowners.
Requiring a real estate license can potentially be a “trap” for wholesaling, as real estate licensees may in in violation of their code of conduct by way of their wholesaling activities. For example if the states licensing code holds the licensee to an agency relationship with their client, then the wholesaler tying up a homeowners property for a below market price may be in violation. The dust has nowhere settled on wholesaling, but to be hones “wholesaling” is a misnomer. What we are really describing is “contract flipping”. Real wholesaling is buying something in bulk and or for a middleman’s price and then reselling at a retail price. The key is actually purchasing the goods or property in question, and not merely acting as a broker or agent. So, the theory goes, if wholesaling is actually NOT. wholesaling but brokering or agency, shouldn’t the “wholesaler” be required to have a broker or agency license?
Wholesaling really isn’t much of a problem with the larger, experienced and ethically run wholesalers. Most I know fully disclose what they’re doing, the risks to the homeowner as well as the benefits, and will actually tell the homeowner id\f they think the homeowner has a better option. In other words, they’re in it for the long run. The problems are with the inexperienced under capitalized people studying wholesaling strategies as put forth by a variety of guru/mentors and the temptation these people feel when they smell a profit.but even back then they never said " hey I'm a wholesaler" they would have selected words with that or be like if i can fill the obligation my partner will
- Lender · Across USA · Member since 2022 · 9 posts · 0 votes1y
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those. - 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
- Lender · Across USA · Member since 2022 · 9 posts · 0 votes1y
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
- Lender · Across USA · Member since 2022 · 9 posts · 0 votes1y
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
Ill shoot u a message
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
Ill shoot u a message
kylie, transactional lenders charge 1% so on a 250k deal you would pay them 2500.00 thats the going rate today. - 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Jay Hinrichs:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
Ill shoot u a message
kylie, transactional lenders charge 1% so on a 250k deal you would pay them 2500.00 thats the going rate today.thanks for that so is 1.5% bad bc that's what that person messaged me
- 1yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Kylie A.:
Quote from @Jay Hinrichs:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
Ill shoot u a message
kylie, transactional lenders charge 1% so on a 250k deal you would pay them 2500.00 thats the going rate today.thanks for that so is 1.5% bad bc that's what that person messaged me
there is no regulation on Transactional funding basically its whatever you can negotiate.. 1% is the going rate from most.. some will be higher some will be lower.. just google around for TF funding and and talk to a number of those funders to find your best deal.
there are half a dozen of these folks or so on BP that do provide this service maybe they will catch this thread or maybe you do some snooping around on the site and find them.
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Jay Hinrichs:
Quote from @Kylie A.:
Quote from @Jay Hinrichs:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
Quote from @Kylie A.:
Quote from @Savan Adeshra:
In some states double closing can be a work around because your are actually buying the property, even if it's for a short amount of time. However, for example South Carolina, wholesaling and double closing are now illegal because the intent is the same.
My team has funded a few of those.u a wholesaler?
No I am a transactional lender. We fund EMDs and Double closes on wholesale deals for a fee.
for example if you are double closing a property worth 250k and selling it to an end buyer for 300k, you need the full 250k upfront and we can fund that amount.
how much yall charge and in what states do you use lend to
States aren't a limitation. The fees vary with the specifics of the deal. Would love to hop on a call and answer your questions. No obligations to you. I sent you a connection request
Ill shoot u a message
kylie, transactional lenders charge 1% so on a 250k deal you would pay them 2500.00 thats the going rate today.thanks for that so is 1.5% bad bc that's what that person messaged me
there is no regulation on Transactional funding basically its whatever you can negotiate.. 1% is the going rate from most.. some will be higher some will be lower.. just google around for TF funding and and talk to a number of those funders to find your best deal.
there are half a dozen of these folks or so on BP that do provide this service maybe they will catch this thread or maybe you do some snooping around on the site and find them.
thanks for the help
- Lender · San Francisco, CA · Member since 2015 · 5 posts · 3 votes1y
Agree with what Jay outlined above. 1% is right around the going rate but things can fluctuate based on the specific deal, lender, capital available, etc...
Happy to hop on a call and walk you through the process if you have questions. - 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Eric Irvine:
Agree with what Jay outlined above. 1% is right around the going rate but things can fluctuate based on the specific deal, lender, capital available, etc...
Happy to hop on a call and walk you through the process if you have questions.shoot me a message, u a transactional lender?
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes1y
Nothing has changed for us. When we get leads I send my cash buyer to the property and tell him "do what you want, I want a $50K assignment fee), they make the offer, sign the contract close, and they pay me my fee!
Let them come up with any laws all day. They can;t touch my Wholesaling method.
We get the biggest and best deals and leads, so any buyer wouldn't think 2ce screwing me over.
Done!
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @Jerryll Noorden:
Nothing has changed for us. When we get leads I send my cash buyer to the property and tell him "do what you want, I want a $50K assignment fee), they make the offer, sign the contract close, and they pay me my fee!
Let them come up with any laws all day. They can;t touch my Wholesaling method.
We get the biggest and best deals and leads, so any buyer wouldn't think 2ce screwing me over.
Done!
then u must have an established relationship with them bc most would just cut you out.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes1y
Quote from @Kylie A.:
Quote from @Jerryll Noorden:
Nothing has changed for us. When we get leads I send my cash buyer to the property and tell him "do what you want, I want a $50K assignment fee), they make the offer, sign the contract close, and they pay me my fee!
Let them come up with any laws all day. They can;t touch my Wholesaling method.
We get the biggest and best deals and leads, so any buyer wouldn't think 2ce screwing me over.
Done!
then u must have an established relationship with them bc most would just cut you out.
I am very well known in this industry as the guy that gets houses for pennies on the dollar. They can cut me out once but here are the consequences...
The entire industry and my connections will know they are a bunch of crooks, and 2. why would you want to cut the hand that feeds you?
You would never again make a deal with me. It just wouldn't make sense, right?
- Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes1y
Quote from @Kylie A.:
Quote from @Jerryll Noorden:
Nothing has changed for us. When we get leads I send my cash buyer to the property and tell him "do what you want, I want a $50K assignment fee), they make the offer, sign the contract close, and they pay me my fee!
Let them come up with any laws all day. They can;t touch my Wholesaling method.
We get the biggest and best deals and leads, so any buyer wouldn't think 2ce screwing me over.
Done!
then u must have an established relationship with them bc most would just cut you out.
Either have a trusting relationship, an agreement of some kind, or have some kind of incentive leverage like Jerryll has built.
- Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes1y
In the states we operate in, its required to disclose reassigning deals. We've been doing this in the purchase agreement before it was mandatory.
In Virginia, it is now mandatory to have a RE Agent disclose profits being made.
We adjust by just complying with what is mandatory.
They are actively restricting the practice of wholesaling. The big wholesaling shops in our states are spending their own resources to actively lobby for wholesaling to prevent it from being banned. But if it does get banned, you just have to adjust accordingly.
- Investor · Arlington, VA · Member since 2014 · 151 posts · 37 votes1y
Easiest way for most ppl to continue to do deals if wholesaling becomes illegal in your state is get your RE License. You have a list of thousands of cashbuyers already. Most traditional RE Agents don't have a list like that.
If anyone interested, i can expand how it becomes easier once you have your license.
- 1yKylie A.Member since 2024 · 60 posts · 15 votesOP
Quote from @John Ma:
Easiest way for most ppl to continue to do deals if wholesaling becomes illegal in your state is get your RE License. You have a list of thousands of cashbuyers already. Most traditional RE Agents don't have a list like that.
If anyone interested, i can expand how it becomes easier once you have your license.
theres also laws against wholesaling while have ur re license
- Lender · Across USA · Member since 2022 · 9 posts · 0 votes1y
Quote from @Kylie A.:
but the thing is alot of this title companies arent even offering double closing
You just need to find the right one. We have never had an issue finding the title company. Ask for recommendations in the community or I can also refer you to some. Regardless of us working together.
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