Real Estate Investor · Lafayette, LA · Member since 2008 · 9 posts · 0 votes
Does anyone here have experience with doing wholesaling or options in the state of Louisiana? Since Louisiana law is different from just about everywhere else, I wanted to talk with someone who has done this kind of work in the state I live in.
bpb, i'm a novice wholesaler here in Metairie and what I do is type up my own contract based on wording from the Offer To Purchase contracts I get at Office Depot. I've faxed them to sellers and haven't gotten any complaints.
2. Yes, basically they're: subject to inspection and if the buyer can procure funding.
3. I was for about a year, yes, and i know quite a few of the "heavy hitters" but in all honesty, I didn't really learn anything there that I couldn't find online.
However, it can't hurt to join and network.
Welcome to BP @A Blanchard! If you use the term "assignment" instead of "wholesaling" when you talk to title companies, they will be more familiar with what you are looking to do.
Be sure you are complying with Act 50 (effective 2017) that made conducting below real estate activities for 3rd parties without a license illegal, yep a criminal offense... “assignment” is very important!
a. offering for sale, b. buying, or offering to buy, c. soliciting prospective purchases, d. managing, or offering to manage, e. leasing, or offering to lease, f. renting, or offering to rent,
You may want to consult with real estate attorney for the correct verbiage to keep you legal :)
Hi @A Blanchard. I am both an investor and a licensed realtor in New Orleans. If you want to make sure you keep yourself out of trouble I highly suggest you find a local real estate attorney that is investor friendly and ask them all the questions you have. They can also provide you with the contracts you need.
You can also contact the Louisiana Real Estate Commission for information on the official rules, regulations and laws. I got the following information directly from Robert Maynor, who is the Director of Investigations...
I asked him this question:
I have a quick question I am hoping you can answer for me. In recent years we have witnessed an abundance of wholesalers in the real estate world who put properties under contract and then assign that contract to an end buyer for an assignment fee. It is my understanding that this is legal in Louisiana, as long as the wholesaler is not marketing the property for sale, but only marketing their equitable interest/contract for sale. Is this correct?
The answer I received follows:
I apologize for the delay in responding to your inquiry but I wanted to confirm with counsel before responding. Any individual who us under a assignable contract or an option to purchase has the right to offer their assignable contract or option for sale. These individuals are not the sellers of the property, as they are not the legal owners of the property. They may have the legal right to purchase the property and market this right to purchase. Licensees on the other hand, must have written authority from the property owners prior to marketing the property for sale. In addition, licensees advertising without the property owners written authority or indicated that a property is for sale, when in fact they only have the authority of the person under the assignable contract, could be found in violation of the law. As they could be using advertising that is misleading or inaccurate.
So we can market the contract and if we have written permission (possibly an addition in the contract) to market the property we can then market the property as well (so long as we make it clear we do not own the property)? And where can I find a title company or get some legal advice in the Shreveport, Bossier area?