Wholesale Owner finance.
Wholesaler · saginaw, MI · Member since 2015 · 74 posts · 15 votes
Hi BP!
I have a question for the more experienced wholesalers out here.
I have a home under contract and my seller is open to owner financing. I have a cash offer on it but it is taking a bit longer for me to sell this property. However I have had several people interested in owner financing. My question is: is it possible to structure a wholesale deal for owner finance? If so how? The house is owned free and clear. The seller wants at least 20k down and 12 % interest. The asking price of the home is 100k for owner finance. I would really appreciate any feedback and direction on structuring this deal if it is possible. Thanks in advance!
A friend was reading this thread, and had some comments that may or may not be worthy of attention, but I'll pass them on for possible entertainment value. As for my own thoughts, I'll refrain. So, without further adieu, from said friend:
.........................
There are a lot of wonderful, well-meaning people on here trying to help others, that's a good thing… sometimes.
Sometimes they are, well, uninformed or misinformed. To paraphrase a famous quote, “It isn't so much that some people are ignorant. It's just that they know so many things that aren't so.”
Some points to consider on the topic of this thread:
The Texas laws, as originally written, regarding certain types of transactions discussed here caused quite an uproar.
What happened later was virtually overlooked, in that the laws were significantly revised before they were passed.
But almost everyone out there still believes that the original proposal with it's complexity and flaws, was what was signed into law. Might want to read the actual law.
There seems to be confusion as to some things, reminiscent of
Abbott and Costello's "Who's On First?" routine ( you younger kids can Google it).
So, in a listed property transaction (Which this WAS NOT), you traditionally have a SELLER, represented by a SELLER’S AGENT, and a BUYER, represented by, you guessed it, BUYER”S AGENT.
(We won’t talk about side issues, such as where a lender might fit in, or of cases wherein an agent is also the seller, or wherein an agent is representing both buyer and seller (dual agency), not important today, and, likely to make some folks dizzy).
In said transaction, normally, the AGENTS have NO VESTED INTEREST in the parcel for sale. They are NOT PRINCIPALS in the purchase of the REAL PROPERTY. They connected the BUYER and the SELLER, and rightfully were paid handsomely for their efforts when title transferred at closing from the SELLER to the BUYER.
To contrast that with the transaction conducted by astute real estate entrepreneur Josselyne Lugo (watch closely), the parties are:
*SELLERS, who have elected to sell on their own, thus creating the mythical and elusive deal, a For Sale By Owner (FSBO) situation.
*BUYER, the aforementioned astute real estate entrepreneur Josselyne Lugo, who is a WHOLESALER.
One will note, NO AGENTS were involved or even aware this was going down.
The BUYER/WHOLESALER finds the SELLER, evaluates the deal, negotiates an agreement with Sellers, and SELLERS and BUYER execute a mutually agreeable CONTRACT, wherein
the SELLERS and the BUYER are the PRINCIPALS in this deal.
BUYER now has Vested Interest via the CONTRACT, said CONTRACT is PERSONAL PROPERTY of BUYER/WHOLESALER, it is not REAL PROPERTY (Simple way to think of this, your mileage may vary: Real Property has a Parcel Number, a Deed, and Address, Personal Property doesn’t).
BUYER/WHOLESALER then elects to TRANSFER her interest in her CONTRACT, which is PERSONAL PROPERTY of BUYER/WHOLESALER,
to a THIRD PARTY.
BUYER/WHOLESALER transfers the CONTRACT, with all it’s rights, to THIRD PARTY, via an Assignment of Contract, for an Assignment Fee.
THIRD PARTY now holds the CONTRACT and ‘steps into BUYER/WHOLESALER’s shoes’, with the lawful ability to execute the CONTRACT under it’s terms and conditions. Still reading?
BUYER/WHOLESALER was NOT representing SELLER or THIRD PARTY BUYER in any capacity. BUYER/WHOLESALER was a PRINCIPAL in every step of the process. BUYER/WHOLESALER was never acting as an AGENT or “BIRD DOG”, rather only on her own behalf. She had no intent or agreement to charge any other party to act as their agent, rather she was a PRINCIPAL PARTY, contracting for an agreement to purchase Real Property, and also contracting to sell Personal Property (a Contract).
Sorry, Brokers and Agents, BUYER/WHOLESALER did NOT poach a deal from your part of the world, which also has free-range real estate entrepreneurs also making deals happen sans a real estate license (Gasp! The horror!), nor did she perform a dreaded ‘Commissiondectomy”, the source of terrifying nightmares for Agents everywhere. She conducted an ethical and legal transaction that was beneficial to the involved parties, by applying her resources, skills, intellectual capital, and hard work.
.........
Please don’t send hate mail, remember, this was the rambling of another party, who is actually quite fond of Agents, but likes to mercilessly tease them. I’m only the messenger, shucks, I can barely spell ‘real estate’.
What is the ARV and estimate of repairs?
Josselyne,
Sounds as though you may be acting as a unlicensed real estate agent in this transaction.
Nick
@Account Closed
No worries. These "wholesaling" techniques were taught on BP by others so it must be ok!
@Account Closed
No worries. These "wholesaling" techniques were taught on BP by others so it must be ok!
Very clear that this is unlicensed brokerage activity. I would suggest the O.P. look into becoming a real estate agent if she wishes to earn fees or commissions by brokering deals between a buyer and a seller.
@James Wise agreed. The simple way to help is education. There is WAY too much of this garbage taught on the wholesaling forums. As a new investor how could anyone know better? This is what they are taught.
@Account Closed
It won't be long till all the various state regulators start taking a look at postings on BP. Tell me Nick: am I right?
Can you not negotiate a deal with a wrap, then assign the wrap?
Obviously I would let the seller AND buyer what is happening and your postion in the transaction. The "down payment" is the assignment fee...
There's more to it but that would be a broad outline...
Im actually not sure. Both the seller and buyer knew my position they were both aware of what I do as a wholesaler. What happened was the same as a regular assignment I set up the owner finance contract under my name then assigned it for a fee to the seller and it worked out the same as any other wholesale transaction. It was an additional fee to the down payment. It really cannot be a down payment because the down payment is suppose to be deducted from the sale price. It was a great learning experience. However I also did a Lease with Purchase option and that was a little different but it was also a nice learning experience and great challenge. I love challenges!
@Account Closed
No worries. These "wholesaling" techniques were taught on BP by others so it must be ok!
Very clear that this is unlicensed brokerage activity. I would suggest the O.P. look into becoming a real estate agent if she wishes to earn fees or commissions by brokering deals between a buyer and a seller.
I was unaware of this I set it up under my name the owner finance and later assigned it to the end buyer for a fee as I do with any other assignments of contract. The home was owned free and clear. Is it still violating laws this way? I would not like to be in another transaction this way if it is illegal.
Josselyne Lugo I don't know of a way to structure this deal with owner finance. As it was already pointed out, in this transaction it appears that you are acting as an unlicensed agent. Be very careful because there are legal ramifications for this violation that could be very costly. Texas laws are very clear in defining the scope of actions allowable by non-licensed professionals.
I set up the owner finance under my name and later assigned it to the end buyer for a fee as any other wholesale transaction. Is this still in violation of the law even if the home was owned free and clear? I would not like to be associated in this kind of wholesale deals if that is the case.
could be considered unlicensed lending violation also
Josselyne Lugo I don't know of a way to structure this deal with owner finance. As it was already pointed out, in this transaction it appears that you are acting as an unlicensed agent. Be very careful because there are legal ramifications for this violation that could be very costly. Texas laws are very clear in defining the scope of actions allowable by non-licensed professionals.
I set up the owner finance under my name and later assigned it to the end buyer for a fee as any other wholesale transaction. Is this still in violation of the law even if the home was owned free and clear? I would not like to be associated in this kind of wholesale deals if that is the case.
The deal definitely gets convoluted with the assignment of an "owner finance" in exchange for the receipt of a fee. I'm not a real estate attorney, nor am I attempting to give legal advice. I will say that the Texas Real Estate Commission takes violations of this nature very seriously; penalties include fines and possible jail time. In short, unlicensed individuals cannot receive a fee for "referral" or helping someone to buy a property. I found this post from REI that helps to explain it better.
http://www.reiclub.com/forums/index.php?topic=2655...
The safest way to continue moving properties is to (1) obtain a real estate license, or (2) partner with an investor friendly agent in your area.
Seek legal advice from an attorney that's familar with how wholesailing real estate contracts work.
With the ramifications put in place in today's real estate industry, you really want to tread lightly.
Do you have access to a local real estate attorney near Edinberg that you can talk to?
If not, I would look into a quick 30 minute "meet and greet" (most attorneys have these for potential customers) and have any questions you may have answered.
It's just too risky of a situation to pull the trigger without some legal advice from a professional.
Best of luck to you and I wish you all the best in your future endeavors.
Justin Peters
Real Estate Professional
Dallas/Fort Worth
First thing to understand is that each state has their own regulations regarding practicing real estate. Second, you are too new at this to be attempting to do this without the assistance of a seasoned investor.
A. If you're a principal in a transaction, and you're assigning your rights in a contract you[re not practicing real estate and you're not violating TREC regulations. If you attempt to connect a buyer and seller without being a principal, you would most certainly be violating regs.
B. If the property is owned free and clear, there is nothing to wrap...it's a pure owner finance. Dodd-Frank may come into play on an owner financed transaction if the transaction isn't exempt.
C. You need to be very careful when dealing with Lease Options in Texas...there have been many changes since 2009 regarding L/O's, CFD,s, etc. Again, seek out a seasoned investor and RMLO to work with you to keep from violating the Property Code and other regulations.
D. Since you had trouble assigning the property, it appears it's not as much of a wholesale deal as you believe it is.
E. Good luck in finding someone who will give you 20% down and pay 12% interest...again, you're not dealing with a motivated owner, but instead you're pushing a rope by trying to make a deal out of something that doesn't appear to have merit as a wholesale deal.
A friend was reading this thread, and had some comments that may or may not be worthy of attention, but I'll pass them on for possible entertainment value. As for my own thoughts, I'll refrain. So, without further adieu, from said friend:
.........................
There are a lot of wonderful, well-meaning people on here trying to help others, that's a good thing… sometimes.
Sometimes they are, well, uninformed or misinformed. To paraphrase a famous quote, “It isn't so much that some people are ignorant. It's just that they know so many things that aren't so.”
Some points to consider on the topic of this thread:
The Texas laws, as originally written, regarding certain types of transactions discussed here caused quite an uproar.
What happened later was virtually overlooked, in that the laws were significantly revised before they were passed.
But almost everyone out there still believes that the original proposal with it's complexity and flaws, was what was signed into law. Might want to read the actual law.
There seems to be confusion as to some things, reminiscent of
Abbott and Costello's "Who's On First?" routine ( you younger kids can Google it).
So, in a listed property transaction (Which this WAS NOT), you traditionally have a SELLER, represented by a SELLER’S AGENT, and a BUYER, represented by, you guessed it, BUYER”S AGENT.
(We won’t talk about side issues, such as where a lender might fit in, or of cases wherein an agent is also the seller, or wherein an agent is representing both buyer and seller (dual agency), not important today, and, likely to make some folks dizzy).
In said transaction, normally, the AGENTS have NO VESTED INTEREST in the parcel for sale. They are NOT PRINCIPALS in the purchase of the REAL PROPERTY. They connected the BUYER and the SELLER, and rightfully were paid handsomely for their efforts when title transferred at closing from the SELLER to the BUYER.
To contrast that with the transaction conducted by astute real estate entrepreneur Josselyne Lugo (watch closely), the parties are:
*SELLERS, who have elected to sell on their own, thus creating the mythical and elusive deal, a For Sale By Owner (FSBO) situation.
*BUYER, the aforementioned astute real estate entrepreneur Josselyne Lugo, who is a WHOLESALER.
One will note, NO AGENTS were involved or even aware this was going down.
The BUYER/WHOLESALER finds the SELLER, evaluates the deal, negotiates an agreement with Sellers, and SELLERS and BUYER execute a mutually agreeable CONTRACT, wherein
the SELLERS and the BUYER are the PRINCIPALS in this deal.
BUYER now has Vested Interest via the CONTRACT, said CONTRACT is PERSONAL PROPERTY of BUYER/WHOLESALER, it is not REAL PROPERTY (Simple way to think of this, your mileage may vary: Real Property has a Parcel Number, a Deed, and Address, Personal Property doesn’t).
BUYER/WHOLESALER then elects to TRANSFER her interest in her CONTRACT, which is PERSONAL PROPERTY of BUYER/WHOLESALER,
to a THIRD PARTY.
BUYER/WHOLESALER transfers the CONTRACT, with all it’s rights, to THIRD PARTY, via an Assignment of Contract, for an Assignment Fee.
THIRD PARTY now holds the CONTRACT and ‘steps into BUYER/WHOLESALER’s shoes’, with the lawful ability to execute the CONTRACT under it’s terms and conditions. Still reading?
BUYER/WHOLESALER was NOT representing SELLER or THIRD PARTY BUYER in any capacity. BUYER/WHOLESALER was a PRINCIPAL in every step of the process. BUYER/WHOLESALER was never acting as an AGENT or “BIRD DOG”, rather only on her own behalf. She had no intent or agreement to charge any other party to act as their agent, rather she was a PRINCIPAL PARTY, contracting for an agreement to purchase Real Property, and also contracting to sell Personal Property (a Contract).
Sorry, Brokers and Agents, BUYER/WHOLESALER did NOT poach a deal from your part of the world, which also has free-range real estate entrepreneurs also making deals happen sans a real estate license (Gasp! The horror!), nor did she perform a dreaded ‘Commissiondectomy”, the source of terrifying nightmares for Agents everywhere. She conducted an ethical and legal transaction that was beneficial to the involved parties, by applying her resources, skills, intellectual capital, and hard work.
.........
Please don’t send hate mail, remember, this was the rambling of another party, who is actually quite fond of Agents, but likes to mercilessly tease them. I’m only the messenger, shucks, I can barely spell ‘real estate’.
A friend was reading this thread, and had some comments that may or may not be worthy of attention, but I'll pass them on for possible entertainment value. As for my own thoughts, I'll refrain. So, without further adieu, from said friend:
.........................
There are a lot of wonderful, well-meaning people on here trying to help others, that's a good thing… sometimes.
Sometimes they are, well, uninformed or misinformed. To paraphrase a famous quote, “It isn't so much that some people are ignorant. It's just that they know so many things that aren't so.”
Some points to consider on the topic of this thread:
The Texas laws, as originally written, regarding certain types of transactions discussed here caused quite an uproar.
What happened later was virtually overlooked, in that the laws were significantly revised before they were passed.
But almost everyone out there still believes that the original proposal with it's complexity and flaws, was what was signed into law. Might want to read the actual law.
There seems to be confusion as to some things, reminiscent of
Abbott and Costello's "Who's On First?" routine ( you younger kids can Google it).
So, in a listed property transaction (Which this WAS NOT), you traditionally have a SELLER, represented by a SELLER’S AGENT, and a BUYER, represented by, you guessed it, BUYER”S AGENT.
(We won’t talk about side issues, such as where a lender might fit in, or of cases wherein an agent is also the seller, or wherein an agent is representing both buyer and seller (dual agency), not important today, and, likely to make some folks dizzy).
In said transaction, normally, the AGENTS have NO VESTED INTEREST in the parcel for sale. They are NOT PRINCIPALS in the purchase of the REAL PROPERTY. They connected the BUYER and the SELLER, and rightfully were paid handsomely for their efforts when title transferred at closing from the SELLER to the BUYER.
To contrast that with the transaction conducted by astute real estate entrepreneur Josselyne Lugo (watch closely), the parties are:
*SELLERS, who have elected to sell on their own, thus creating the mythical and elusive deal, a For Sale By Owner (FSBO) situation.
*BUYER, the aforementioned astute real estate entrepreneur Josselyne Lugo, who is a WHOLESALER.
One will note, NO AGENTS were involved or even aware this was going down.
The BUYER/WHOLESALER finds the SELLER, evaluates the deal, negotiates an agreement with Sellers, and SELLERS and BUYER execute a mutually agreeable CONTRACT, wherein
the SELLERS and the BUYER are the PRINCIPALS in this deal.
BUYER now has Vested Interest via the CONTRACT, said CONTRACT is PERSONAL PROPERTY of BUYER/WHOLESALER, it is not REAL PROPERTY (Simple way to think of this, your mileage may vary: Real Property has a Parcel Number, a Deed, and Address, Personal Property doesn’t).
BUYER/WHOLESALER then elects to TRANSFER her interest in her CONTRACT, which is PERSONAL PROPERTY of BUYER/WHOLESALER,
to a THIRD PARTY.
BUYER/WHOLESALER transfers the CONTRACT, with all it’s rights, to THIRD PARTY, via an Assignment of Contract, for an Assignment Fee.
THIRD PARTY now holds the CONTRACT and ‘steps into BUYER/WHOLESALER’s shoes’, with the lawful ability to execute the CONTRACT under it’s terms and conditions. Still reading?
BUYER/WHOLESALER was NOT representing SELLER or THIRD PARTY BUYER in any capacity. BUYER/WHOLESALER was a PRINCIPAL in every step of the process. BUYER/WHOLESALER was never acting as an AGENT or “BIRD DOG”, rather only on her own behalf. She had no intent or agreement to charge any other party to act as their agent, rather she was a PRINCIPAL PARTY, contracting for an agreement to purchase Real Property, and also contracting to sell Personal Property (a Contract).
Sorry, Brokers and Agents, BUYER/WHOLESALER did NOT poach a deal from your part of the world, which also has free-range real estate entrepreneurs also making deals happen sans a real estate license (Gasp! The horror!), nor did she perform a dreaded ‘Commissiondectomy”, the source of terrifying nightmares for Agents everywhere. She conducted an ethical and legal transaction that was beneficial to the involved parties, by applying her resources, skills, intellectual capital, and hard work.
.........
Please don’t send hate mail, remember, this was the rambling of another party, who is actually quite fond of Agents, but likes to mercilessly tease them. I’m only the messenger, shucks, I can barely spell ‘real estate’.
Yes! You sir are awesome! Or " you're friend" is awesome. Thanks for posting everything i was thinking, but couldn't articulate as well as you did.
You should be able write up an "agreement" stating what the seller wants to do for a seller financing. Then sell that "agreement" to a buyer. Have both "agreements" to work with if they still don't buy then find more buyers.
Well Greg and J.S. obviously are suffering from cognitive bias, appears Greg also suffers from the effects of his legal education at Internet University.
Need to understand Uniform Law, Laws of Agency, which is not found in real estate agency law other than describing specific acts of agent/broker relationships, "agency" goes much deeper than that and regulators will use the Laws of Agency approach regardless of the type of contract you use, the type of get-a-way car has no bearing on the armed robbery.
If the seller is aware you are attempting to facilitate a sale, you are in an agency capacity with the owner's consent. Period.
Attempting to facilitate a seller financed loan, is mortgage brokering, illegal without a license. You will be in violation of several federal and state laws, these laws don't have grey areas for investors to argue.
A mortgage Note is a unilateral contract, one party promises to pay. A sale contract is a bilateral contract, both parties perform, one promises to sell, the other to buy.
A unilateral contract may NOT be assigned without out the CONSENT of non-serveant, the party who does not perform. A mortgage is a promise by the borrower, the lender is not required to perform anything, the lender must give consent for any borrower to replace themselves with another party to perform for them!
Obtaining that consent without having been the actual borrower is brokering.
Further, this applies to any financing arrangement, lease-option to buy, sub-to, wraps or installment sales.
I suggest you stop dead in your tracks, chalk it up to experience and start learning real estate, basic business law and the basics of what a mortgage is.
2016, time to decide, is real estate something you really want to know as a profession and business or are you just playing trying to make a few bucks as soon as you can?
If you think real estate is important to you, then invest your time and some money in getting a real estate education, two or three weeks, set a budget, less than 200, 300, 400 dollars, certainly not more than $500! Much of the basics is free.
Public internet forums and blogs are NOT the place to learn real estate, you get ideas, but you're not learning real estate. You are also exposed to investors speaking guru talk and folklore, look to who is giving advice, not necessarily soaking up what you want to hear but who has the education, experience and knowledge of real estate or a topic. Here, you'll find about 85-90% are not really qualified to advise, but that doesn't stop them from wanting to be heard or from attempting to project themselves as experts for financial gain.
Happy holidays! :)
"Greg also suffers from the effects of his legal education at Internet University."
"the type of get-a-way car has no bearing on the armed robbery."
@Bill Gulley you have such a way with words! We always get a higher education with a few laughs!
A friend was reading this thread, and had some comments that may or may not be worthy of attention, but I'll pass them on for possible entertainment value. As for my own thoughts, I'll refrain. So, without further adieu, from said friend:
.........................
There are a lot of wonderful, well-meaning people on here trying to help others, that's a good thing… sometimes.
Sometimes they are, well, uninformed or misinformed. To paraphrase a famous quote, “It isn't so much that some people are ignorant. It's just that they know so many things that aren't so.”
Some points to consider on the topic of this thread:
The Texas laws, as originally written, regarding certain types of transactions discussed here caused quite an uproar.
What happened later was virtually overlooked, in that the laws were significantly revised before they were passed.
But almost everyone out there still believes that the original proposal with it's complexity and flaws, was what was signed into law. Might want to read the actual law.
There seems to be confusion as to some things, reminiscent of
Abbott and Costello's "Who's On First?" routine ( you younger kids can Google it).
So, in a listed property transaction (Which this WAS NOT), you traditionally have a SELLER, represented by a SELLER’S AGENT, and a BUYER, represented by, you guessed it, BUYER”S AGENT.
(We won’t talk about side issues, such as where a lender might fit in, or of cases wherein an agent is also the seller, or wherein an agent is representing both buyer and seller (dual agency), not important today, and, likely to make some folks dizzy).
In said transaction, normally, the AGENTS have NO VESTED INTEREST in the parcel for sale. They are NOT PRINCIPALS in the purchase of the REAL PROPERTY. They connected the BUYER and the SELLER, and rightfully were paid handsomely for their efforts when title transferred at closing from the SELLER to the BUYER.
To contrast that with the transaction conducted by astute real estate entrepreneur Josselyne Lugo (watch closely), the parties are:
*SELLERS, who have elected to sell on their own, thus creating the mythical and elusive deal, a For Sale By Owner (FSBO) situation.
*BUYER, the aforementioned astute real estate entrepreneur Josselyne Lugo, who is a WHOLESALER.
One will note, NO AGENTS were involved or even aware this was going down.
The BUYER/WHOLESALER finds the SELLER, evaluates the deal, negotiates an agreement with Sellers, and SELLERS and BUYER execute a mutually agreeable CONTRACT, wherein
the SELLERS and the BUYER are the PRINCIPALS in this deal.
BUYER now has Vested Interest via the CONTRACT, said CONTRACT is PERSONAL PROPERTY of BUYER/WHOLESALER, it is not REAL PROPERTY (Simple way to think of this, your mileage may vary: Real Property has a Parcel Number, a Deed, and Address, Personal Property doesn’t).
BUYER/WHOLESALER then elects to TRANSFER her interest in her CONTRACT, which is PERSONAL PROPERTY of BUYER/WHOLESALER,
to a THIRD PARTY.
BUYER/WHOLESALER transfers the CONTRACT, with all it’s rights, to THIRD PARTY, via an Assignment of Contract, for an Assignment Fee.
THIRD PARTY now holds the CONTRACT and ‘steps into BUYER/WHOLESALER’s shoes’, with the lawful ability to execute the CONTRACT under it’s terms and conditions. Still reading?
BUYER/WHOLESALER was NOT representing SELLER or THIRD PARTY BUYER in any capacity. BUYER/WHOLESALER was a PRINCIPAL in every step of the process. BUYER/WHOLESALER was never acting as an AGENT or “BIRD DOG”, rather only on her own behalf. She had no intent or agreement to charge any other party to act as their agent, rather she was a PRINCIPAL PARTY, contracting for an agreement to purchase Real Property, and also contracting to sell Personal Property (a Contract).
Sorry, Brokers and Agents, BUYER/WHOLESALER did NOT poach a deal from your part of the world, which also has free-range real estate entrepreneurs also making deals happen sans a real estate license (Gasp! The horror!), nor did she perform a dreaded ‘Commissiondectomy”, the source of terrifying nightmares for Agents everywhere. She conducted an ethical and legal transaction that was beneficial to the involved parties, by applying her resources, skills, intellectual capital, and hard work.
.........
Please don’t send hate mail, remember, this was the rambling of another party, who is actually quite fond of Agents, but likes to mercilessly tease them. I’m only the messenger, shucks, I can barely spell ‘real estate’.
Thank you!
Thank you everyone for your input. Im having mixed answers but I would say majority rules. I will seek legal advice from an attorney for any further transactions. I really appreciate your guidance. The last thing I want to be in the middle of are legal issues or unethical transactions. I will continue to educate myself. Have a blessed day everyone.
As you can see Josselyne, there is no shortage of opinion. My philosophy has always been, "believe half of what you see and none of what you hear"...and that includes my comments.
I will only say that I am a full-time Texas real estate investor and Texas broker and have been investing in Texas and only Texas for 16 years. I seldom make a move without one or more attorney's seal of approval. I do these deals all the time, as do my unlicensed investor/partners. I have spoken directly with our State association's legal counsel about this very issue and they believe exactly what has been stated...assigning a contract as a principal is not the practice of real estate regardless the terms of the contract (as long as it is in fact a legal contract). I would advise you to seek the advice of Texas legal counsel (when doing Texas deals) over outside experts and do your own due diligence...which doesn't typically include BP. There is no such thing as real estate expert in all 50 states.