Strongsville, OH · Member since 2017 · 28 posts · 4 votes
I'm getting into wholesaling in Ohio, and I've heard the horror stories of people being accused of brokering without a broker's license. Multiple sources have stated different ways to wholesale in Ohio, such as adding the wholesale contract to a trust and selling the trust. I don't have a broker's license, and as there are ways to stay legal and wholesale without a broker's license, I'd rather not get one.
In Ohio, what strategies have you used in wholesaling to keep the Department of Commerce happy so they won't nab you for wholesaling? I'm interested in hearing how you do your wholesale deals if you've been consistently wholesaling.
Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
9y
Rick,
I am not an attorney so take this with a grain of salt. It is always legal to sell something that you own, even if you only own for 5 minutes. Double closings are legal. Assignment of a contract is legal. What is illegal is entering into a contract without the intent of closing or performing what the contract states. The issue with wholesaling or assigning of contract that most people have are that some people advertise the property they have under contract instead of advertising the contract. This is where you fall into the definition of brokering without a license. If you are truly worried about all this then just get you realtors license and sleep with a peace of mind.
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
First of all, I don't 'wholesale', as the term is used on this site.
I've come to the conclusion that 'wholesalers' should always be ready, willing, and able to perform on the terms of the contract. The contract should be void of finance and assignment contingencies and the 'wholesaler' should have verifiable funds available for closing. 'Wholesaling' should be done with the expectation that the 'wholesale' buyer may not find an 'end buyer'... and that's Ok, because the 'wholesaler' can then 'wholetail' the property after minimal capital improvements.
I believe the above hold for Ohio, specifically, but applies to all other states.
I don't 'wholesale'. But I most likely will (according to MY definition) when I see the bottom of the next real estate cycle. That may be 5... 10... 15 years out. See you then, if I am still alive;)
Wholesaler · Waldorf, MD · Member since 2015 · 459 posts · 245 votes
9y
@Rick MacGills, I believe that Ohio is one of those states where you absolutely need to have a realtor license. You probably need to go to a couple of REI meetings in your area to meet other wholesalers that are actively wholesaling as well as meet cash buyers to get more info.
Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
9y
Get transactional funding and you will be alright. Also you can legally only advertise the contract and not the property. Google Jeff Watson Ohio wholesaling for more information.
Rental Property Investor · Brookville, OH · Member since 2016 · 488 posts · 363 votes
9y
Rick,
I am not an attorney so take this with a grain of salt. It is always legal to sell something that you own, even if you only own for 5 minutes. Double closings are legal. Assignment of a contract is legal. What is illegal is entering into a contract without the intent of closing or performing what the contract states. The issue with wholesaling or assigning of contract that most people have are that some people advertise the property they have under contract instead of advertising the contract. This is where you fall into the definition of brokering without a license. If you are truly worried about all this then just get you realtors license and sleep with a peace of mind.