I've researched wholesaling and it's very unique and is what i want to do in TN. I was told by a real estate agent that wholesale RE is illegal in TN and that i need a license but I know a few people that do wholesale in Memphis,TN. Is it illegal? Are there legal ways to go about the situation? How do i find out what's the legitimate answer? I always thought that once you find a seller and buyer put it under contract seal the deal and close you'll fine..but Am I wrong?
simply contact the department of Real Estate.. either in writing or if they have a call in line and better yet.. just pop into their office and ask to talk with a compliance officer..
I know in MS they will come right to the counter.. that is the definitive way to answer your question.
almost all states have laws against selling Real estate without a license.. and so what folks fall back on it.. assigning a contract.. but to do so your not suppose to advertise the house in any way just a contract and that makes it hard to do. you would need your buyers lined up so you don't have to advertise .... but to tie up a home that you can't close on and put it on craigs list.. is probably a violation. if it were not there would be no reason to have a Real estate industry at all ... there is a reason that there is a industry and that industry requires licenses.
Other thing to do and I think this is where this whole ( no pun intended wholesaling) model is going ,,, one just needs to set up their transactional funding partners...
So you buy the asset take title then resell.. you still have issue find an end buyer vis a vi the advertising rules... But if you can buy the asset then you can resell without a licnese the only state I know were this does not work is Wisconsin.
hi takeshia from " elvis country"....lol. wholesaling is a good part of the flipping houses and RE world. however, each state has its laws regarding wholesaling. i would tend to believe a real estate attorney from the area on his or her opinion. i wouldn't say something is illegal if you can get a license to do it, its just illegal to not have the license. then we get into the gray area of exactly what wholesaling is. if you find a seller, and put them in touch with a buyer for their house, you are acting as an agent. without a license, that is illegal. but, if you find a seller, YOU get the house under contract to buy, and put in the contract your right to reassign the contract, that is wholesaling and might NOT be illegal. in that case, you are not acting as an agent because you are not bringing two parties together. you are actually contracting to buy an item, but then exercising your right to sell that contract which does have monetary value. just like a corporation creates a stock certificate and sells it on the stock market, it is just a piece of paper with monetary value that you are selling. please check with at least one other real estate lawyer and explain the process completely. show them how you would not be acting as an agent between buyer and seller but as an actual purchaser looking to sell the asset you have created. that may make the difference.