So I have a dilemma, I am currently taking re courses to obtain my license, however I have also started a Re inv. Business, specializing in wholesaling. I've networked with a number of investors that are willing and able to do business with me, if and when I have inventory to offer. However, I spoke with a Realtor who mentioned, if I am the liaison between a buyer (investor) and a seller I would need to have a license to do such. I'm in Fayetteville, north carolina, anyone familiar with the legality of re investing, and specifically wholesaling?
I have my Brokers license in WI, and laws differ from state to state. However, the majority of them are the same. As long as you are acting as a principal in the transaction, you do not have to be licensed to conduct your RE Investing Co. For example, Tevell Investments offers to purchase a house from Joe seller for $50,000. Tevell Investments then assigns or sells the house via double closing to the end buyer for $60,000 and gets paid the spread/profit at closing. Because your company had an equitable title position, you were considered a principal in the transaction and you were not REPRESENTING anyone as an agent would. CAUTION....Depending on which brokerage you join after you get your license, your Broker can and will dictate what they will allow in regards to your buying and selling within your Investing Co. because they have a certain amount of liability while you are under there brokerage.
Im not a lawyer.
But from my understanding you dont have to be licensed to wholesale. The key is you MUST have the property under contract ( equitable interest) before you can market assign or sell said property.
Although if you are licensed you have to make specific disclosures to the seller, and your your broker should know you actively invest.
Hope that helps, someone may be able to explain further as far as your state laws go.
I have my licensing brokers in WI and the laws vary from state to state. However, most of them are identical. While you act as principal in the transaction, which is not necessary to have a license carry RE Investment Co.
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