Wholesaling in PA
I read an interesting article on PA laws as it pertains to licensed and unlicensed real estate transactions and deals. As it turns out, what most "wholesalers" in PA do (at least most of the ones I know) is actually illegal. I used to do some wholesaling last year and now I have my Realtor's license. I figured this would give me a good angle on some great deals while working both the retail and wholesale avenues of moving properties. I decided to call an attorney before signing any documents with my broker since I didn't want to set myself up for failure with my wholesale deal. He pretty much explained to me that if I never intended to actually "buy" the property myself, its considered marketing if I repeatedly have homeowner sign options contracts and then sell said contracts to investors. If I market properties, it requires a license and if I already have a license that property must go through a broker. Its O.K. to wholesale a property in PA if I either A.) Actually buy the property, take hold of the deed, then move it afterward or B.) Consistently purchase properties for investment purposes and move a contract here or there as incidental to my investment deals. I'm not a lawyer or even an expert at wholesaling by any means, but If anyone in PA is either currently wholesaling or considering it I would STRONGLY suggest consulting with an attorney for the do's and don't of how you're allowed to run your deal legally.