Is wholesaling permitted in my state???

7 Replies

I will keep this one short and sweet guys since I feel confused. Is wholesale illegal in Missouri  or are there any instances where it would be at all?

Their is a way to accomplish the transaction in a legal way even if it was illegal.  Check with your local investor groups to learn the standard operating procedures.  Find out from your local investors who they close their creative agreements with and consult with those attorneys.  You will get the information you seek and expand your network all with 1 stone.

Key: If you visit them with donuts in person they may not charge you on the initial visit!

@Edward Mitchell  I know of no issue with wholesaling in Missouri but I think it would be fair to say the new "norm" is most title companies want to see a stand alone transaction. This means if you are wanting to wholesale a property you would buy it and close, then turn around soon thereafter and sell it to your buyer. Each closing stands alone so to speak. In the past it was all done simultaneously. 

Full disclosure is another suggestion when it comes to wholesaling. 

Good luck!

All true, except there is no way to make something legal that is illegal. Wording in Mo. law is "facilitating a sale" that can be a wide swath of activities and will be defined by the RE Commission. You'll need to buy, take title, then sell for a clean transaction. There are transactional lenders to bridge the gap.

If you have workable circumstances, the seller can seller finance (sub-to if need be, not a consumer loan) to close your side, then pay off the note. The note and DOT will still need to be filed even if the term ends up being an hour. Remind the closer to obtain a deed of release for the second transaction. :)

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

@Bill Gulley, so are you saying you can't just do a regular re-assignment of the contract?

Originally posted by @James Danchus :

@Bill Gulley, so are you saying you can't just do a regular re-assignment of the contract?

 While this post is about a year old, yes this is still in play as a buyer obtaining a loan will find it difficult with an assigned contract, it's a red flag that the lender is financing land and a contract, a cash buyer can purchase. 

A lender for your buyer may require to disclose your deal, with your seller. they may determine an allowed spread, like 10% or not fund at all. 

Wholesaling as done the guru way with assignments is really an underground operation, set aside RE license laws, look to contract law, without the intent and ability to perform as stated in the contract you don' have a valid contract. Shining the light on your deal with a lender to view isn't a good way to go.  :) 

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

Oh, okay. I think I see what you are saying now. It took me a few days :)