Real Estate Agent · Peoria, IL · Member since 2015 · 76 posts · 20 votes
Hi, this is Venky. I would like to connect to wholesalers who has RE licence. I would like to know how the wholesaling process works holding a licence. I got licence few months ago and would like to learn from other wholesalers, who holds RE License.
I am in Florida and have a RE License and also a wholesaler. You can wholesale houses under two circumstances: you have equitable interest in a property(have a contract with the owner) or you market other investors properties as an agent. I do this all the time.
I am in Florida and have a RE License and also a wholesaler. You can wholesale houses under two circumstances: you have equitable interest in a property(have a contract with the owner) or you market other investors properties as an agent. I do this all the time.
IT appears the state is trying to put an end to unlicensed brokers.
475.43 475.43 Presumptions.—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate. All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.
Burden of proof is on the person to PROVE they are not acting as an unlicensed broker. Notice the phrase about schemes or devices EMPLOYED to permit unlicensed brokering.
Your question poses a dilemma. When someone calls wanting to sell their house do you for FOR them or AGAINST them? Getting them to sign a contract well under FMV and then taking a cut seems at odds with providing a true service.
@John Thedford, thank you for your email. When some one contacts me to sell their home, I would act in their best interest. If I do marketing by myself for wholesaling, I would disclose them "I am an agent, but looking to buy as a principle for profit." I will look at homes that fit my criteria only as a buy and hold, if I get an investor looking for such deal, I would assign it and if I don't find a buyer, I will still buy it for myself as buy and hold. This is what my current strategy is. If you feel this is not right, please let me know, what you are suggesting.
I am just pointing out the possible conflicts. I am an agent and buy and hold investor. How can I do both and be ethical? I feel that disclosing FMV and offering to list it ALONG with offering to buy it at a discount is as open as possible. If I get a seller that wants it gone TODAY without BS and only with a 5 day inspection then I do that. If the seller says no, they want more, then I offer to list it. The licensed brokers that "wholesale" never disclosing to the seller what they are giving up are not operating ethically in my book. This is mostly personal opinion and personal ethics. Others may differ. The one thing I can say for sure is after being in business all my life is that not one person has ever looked me in the eye and accused me of any form of dishonesty.
Agree with @John Thedford that to be honest and let the business be long enough and earn long enough also. Earn money is serious and do the right and serious job.