"Get it Under Contract" Does it invite Wholesale suspicion ?

6 Replies

You've heard it, seen it, maybe even said it, Get it/Got it Under Contract. For reasons that I'll explain, hereafter refer to as "GIUC". 

GIUC has been used for many, many years across many business disciplines. Usually by someone trying to sound legal. Funny thing is, it seems to have the opposite effect. Which brings us to the question. Can the words bring about an investigation ? It's being said in meaningful places that it can. Is the mere use of GIUC in forums, blogs, or wherever sufficient cause for any level of scrutiny from big broth....I mean the Justice Dept. or regulatory agencies ?

What do Yall think ?

I'm not sure I understand the context of the question.  I get properties under contract all the time.  And when I do, I say that I "Got it under contract."  That's a statement of fact.  

When I find a property that I want, I say, "I need to get it under contract."  That's also a statement of fact.

What am I missing?  

J,

I've used it as well, upon occasion. Only recently it's been implied, by some, not I, that GIUC is an indicator of wholesalers, whom might not be within the strict aspects of the laws pertaining to wholesaling. I'm sure word searches are being used. 

J, you're certainly safe. But others, through no conscience effort of their own might be bringing unwanted scrutiny. Not only to their self, but also to those dealing with them. Even if they've done nothing wrong. 

I'm just curious what others have noticed.

I'm new to wholesaling but when I say "get it under contract" that's what I mean. I sign a purchase agreement with the seller stating the agreed upon price, contingencies, and closing terms. It's nearly identical to what you see using a realtor. It does include language allowing me to assign the contract to another buyer. But it's still a contract. I'm in Indiana so maybe the laws are different in your state. That can cause confusion. 

Originally posted by @Tim FitzGerald :

J,

I've used it as well, upon occasion. Only recently it's been implied, by some, not I, that GIUC is an indicator of wholesalers, whom might not be within the strict aspects of the laws pertaining to wholesaling. I'm sure word searches are being used. 

J, you're certainly safe. But others, through no conscience effort of their own might be bringing unwanted scrutiny. Not only to their self, but also to those dealing with them. Even if they've done nothing wrong. 

I'm just curious what others have noticed.

Ah...it sounds like you're suggesting that people who are doing the policing are looking for these terms in order to determine if they should look further into what the person is doing.  You're not suggesting that using these terms is in any way illegal or a cause of an investigation (which is what I originally thought you meant).

That makes more sense.  Though anyone who thinks this is the best way to track/find illegal brokering activities isn't being very efficient.

J,

I agree it wouldn't be efficient. But, sense when are people logical and efficient ? But if what I've heard re this is true, it indicates a deeper more pervasive level of scrutiny. I'm sure most all of us on BP at least, are forthright, transparent, and well intended. The curiosity is, are simple phrases, such as GIUC being used to word search the RE industry. And has anyone noticed. Some have said it is happening.

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