Save my self the heartache, and get a real estate license! No w
Hello! I just joined this group today, and hoping to find some input on a nagging question I have. Is it really possible to do wholesaling of houses without money out of your pocket, or doing and rehabe work?
Like, just getting a finder's fee for finding a seller and buyer?
Preparing to get real estate license, too dangerous in Ohio to do wholesaling!
Lots of Cavalier posts on here. Assignment of equatable interest is not illegal nor has it been changed. If that were the case anyone with equatable interest from a trust or probate would be illegal as well. Most people just make the mistake of being a actual agent and that gets them in trouble. Don't be a agent be a investor.
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#2 All Forums Contributor
- Real Estate Broker
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@Jonathan Damon I think the issue comes in with intent.. and or a perceived scheme or repeatable business practices.
and I think were some get in trouble in the states that care to enforce these laws is they basically set up exactly like a real estate agent would
1. Website pictures of houses descriptions bed bath sq ft and the perception to the public that they own them when they dont.
2. telling sellers they are cash buyers when they really are not.. I get oh 10 plus yellow letters from the 15 markets I work each week I yet to see a yellow letter that did not basically say the exact same thing. I am a cash buyer I will pay cash at a time of your choosing no mention of assigning or helping to basically broker the home.
3. public advertising of homes they dont own ON BP see it every day, craigslist see it every day..
I think what happens is the regulators see these efforts simply as a ruse to circumvent the licensing laws. Oregon added a equitable interest chapter into their code.. IE you need a license if your business is trading in equitable interest .And you advertise in the public medium a home you don't' own your in trouble. But thats our state.
Now I get it you have a buyers list it goes to private folks ( guys are trying to put me on them daily LOL) I don't have the time or energy to wade through the stuff so I can see that.. but its still a business set up to create income or compensation for bringing two parties together .. I think this is where If and its a BIG if you get a complaint filed against you a regulator is not a complete moron they will see through most of this.. But in my mind if your state does not care then I don't personally care.. sheeet I fund all sorts of deals my guys buy from wholesalers... I am just commenting personally on the states that do care and the fact that there is some regulation when it comes to bringing parties together..
One off probate deals or Selling your trust interest are not schemes set up and on going business's.. there is a difference. I know we are not going to necessarily agree on this but I do like to have an intelligent conversation about it and talk about both sides... as its interesting to me how strongly both sides of the coin respond to this .. I am sure some guru's somewhere taught this and it has stuck .. If I was going to wholesale in a state without a license or sell real estate without a license and without actually buying the property prior to selling it ( what I have done for 40 years now) I would simply want to get a written confirmation from the regulating body ( department of real estate or whatever they call it in persons state) and put it in my file that my method or business model is allowed.. I would NO WAY take the advice of an attorney on this.. they are paid to argue.. regulators are paid to argue back guess who pays and who loses most of the time.. I have been there done that with regulators.. last attorney I listened to cost me 30k plus a lot of drama and aggravation.. of course he stills thinks we win at court... I said how much to get there.... answer 100k. only people that do that are big companies with millions at stake.. not me pay my money pay my fine and do it the way the state wanted..
Originally posted by @Jay Hinrichs:
@Jonathan Damon I think the issue comes in with intent.. and or a perceived scheme or repeatable business practices.
and I think were some get in trouble in the states that care to enforce these laws is they basically set up exactly like a real estate agent would
1. Website pictures of houses descriptions bed bath sq ft and the perception to the public that they own them when they dont.
2. telling sellers they are cash buyers when they really are not.. I get oh 10 plus yellow letters from the 15 markets I work each week I yet to see a yellow letter that did not basically say the exact same thing. I am a cash buyer I will pay cash at a time of your choosing no mention of assigning or helping to basically broker the home.
3. public advertising of homes they dont own ON BP see it every day, craigslist see it every day..
I think what happens is the regulators see these efforts simply as a ruse to circumvent the licensing laws. Oregon added a equitable interest chapter into their code.. IE you need a license if your business is trading in equitable interest .And you advertise in the public medium a home you don't' own your in trouble. But thats our state.
Now I get it you have a buyers list it goes to private folks ( guys are trying to put me on them daily LOL) I don't have the time or energy to wade through the stuff so I can see that.. but its still a business set up to create income or compensation for bringing two parties together .. I think this is where If and its a BIG if you get a complaint filed against you a regulator is not a complete moron they will see through most of this.. But in my mind if your state does not care then I don't personally care.. sheeet I fund all sorts of deals my guys buy from wholesalers... I am just commenting personally on the states that do care and the fact that there is some regulation when it comes to bringing parties together..
One off probate deals or Selling your trust interest are not schemes set up and on going business's.. there is a difference. I know we are not going to necessarily agree on this but I do like to have an intelligent conversation about it and talk about both sides... as its interesting to me how strongly both sides of the coin respond to this .. I am sure some guru's somewhere taught this and it has stuck .. If I was going to wholesale in a state without a license or sell real estate without a license and without actually buying the property prior to selling it ( what I have done for 40 years now) I would simply want to get a written confirmation from the regulating body ( department of real estate or whatever they call it in persons state) and put it in my file that my method or business model is allowed.. I would NO WAY take the advice of an attorney on this.. they are paid to argue.. regulators are paid to argue back guess who pays and who loses most of the time.. I have been there done that with regulators.. last attorney I listened to cost me 30k plus a lot of drama and aggravation.. of course he stills thinks we win at court... I said how much to get there.... answer 100k. only people that do that are big companies with millions at stake.. not me pay my money pay my fine and do it the way the state wanted..
I'm confused. So if I pay with cash that doesn't make me a cash buyer? If I sell my contract and they pay with cash is that not cash? Maybe not to you because you don't want it to sound right. To a person that has a house they need to move yesterday they don't care. Fact is they get the money. No one gets screwed because they know what it entails. Real estate agents don't sell every home they list and sometimes deals fall through with wholesalers. It happens but I rather rather post a sign that says "kick me im stupid" than screw someone over. It doesn't make sense in a real business. Im going to stop wasting my time with you guys, it's pointless. If someone sues me I will litigate it and win. Been there done that. Good day Sir.
There are a lot of people arguing the legalities and it really doesn't matter because you are making the right choice. The right choice in becoming an agent. That way you have multiple tools in your toolbox. When you talk to any buyer, you can sell their house whether they be distressed (as a wholesaler) or to someone that is willing to put in some work and then let you list as an agent. Becoming an agent isn't difficult, it's one of the easiest professional licenses and if you pick a good broker that offers training, then you learn a lot and get skills. Also, how awesome is it when you see a for sale sign you can call another agent and get the lockbox code to check it out without having to wait for someone?
So many pros to being an agent, wish you the best in your wholesaling and also selling retail homes for that PHAT commission.
@Brett Snodgrass I've been contemplating getting my license too for the same reasons you listed. However, I keep hearing that brokers won't like me wholesaling properties? Have you had that problem?
Originally posted by @Jonathan Damon:
Originally posted by @Jay Hinrichs:@Jonathan Damon I think the issue comes in with intent.. and or a perceived scheme or repeatable business practices.
and I think were some get in trouble in the states that care to enforce these laws is they basically set up exactly like a real estate agent would
1. Website pictures of houses descriptions bed bath sq ft and the perception to the public that they own them when they dont.
2. telling sellers they are cash buyers when they really are not.. I get oh 10 plus yellow letters from the 15 markets I work each week I yet to see a yellow letter that did not basically say the exact same thing. I am a cash buyer I will pay cash at a time of your choosing no mention of assigning or helping to basically broker the home.
3. public advertising of homes they dont own ON BP see it every day, craigslist see it every day..
I think what happens is the regulators see these efforts simply as a ruse to circumvent the licensing laws. Oregon added a equitable interest chapter into their code.. IE you need a license if your business is trading in equitable interest .And you advertise in the public medium a home you don't' own your in trouble. But thats our state.
Now I get it you have a buyers list it goes to private folks ( guys are trying to put me on them daily LOL) I don't have the time or energy to wade through the stuff so I can see that.. but its still a business set up to create income or compensation for bringing two parties together .. I think this is where If and its a BIG if you get a complaint filed against you a regulator is not a complete moron they will see through most of this.. But in my mind if your state does not care then I don't personally care.. sheeet I fund all sorts of deals my guys buy from wholesalers... I am just commenting personally on the states that do care and the fact that there is some regulation when it comes to bringing parties together..
One off probate deals or Selling your trust interest are not schemes set up and on going business's.. there is a difference. I know we are not going to necessarily agree on this but I do like to have an intelligent conversation about it and talk about both sides... as its interesting to me how strongly both sides of the coin respond to this .. I am sure some guru's somewhere taught this and it has stuck .. If I was going to wholesale in a state without a license or sell real estate without a license and without actually buying the property prior to selling it ( what I have done for 40 years now) I would simply want to get a written confirmation from the regulating body ( department of real estate or whatever they call it in persons state) and put it in my file that my method or business model is allowed.. I would NO WAY take the advice of an attorney on this.. they are paid to argue.. regulators are paid to argue back guess who pays and who loses most of the time.. I have been there done that with regulators.. last attorney I listened to cost me 30k plus a lot of drama and aggravation.. of course he stills thinks we win at court... I said how much to get there.... answer 100k. only people that do that are big companies with millions at stake.. not me pay my money pay my fine and do it the way the state wanted..
I'm confused. So if I pay with cash that doesn't make me a cash buyer? If I sell my contract and they pay with cash is that not cash? Maybe not to you because you don't want it to sound right. To a person that has a house they need to move yesterday they don't care. Fact is they get the money. No one gets screwed because they know what it entails. Real estate agents don't sell every home they list and sometimes deals fall through with wholesalers. It happens but I rather rather post a sign that says "kick me im stupid" than screw someone over. It doesn't make sense in a real business. Im going to stop wasting my time with you guys, it's pointless. If someone sues me I will litigate it and win. Been there done that. Good day Sir.
Jonathan, a main point brought out by this and other similar topics is that each state is different. This topic is about OH. As I pointed out, my state (NC) and yours (SC) are different. We don't have the same issues as OH and have different laws that make this issue basically moot. In NC, the has a checkbox that basically is the 'wholesaler' checkbox, stating the seller does not yet own the property. How easy is that?
I sold a land parcel in SC about a month ago. The state law says, since I am out of state, I need to ... right there and now not next April... unless I can prove an exemption. I'm sure someone has tried to cook up a scheme to avoid the SC tax. Maybe treating timber sales as an installment sale. LOL! But I recognize what the law is for and comply.
If your future plans include 'wholesaling' in OH, the path of least resistance is to get a broker's license.
Originally posted by @Chris Martin:
Originally posted by @Jonathan Damon:Originally posted by @Jay Hinrichs:
@Jonathan Damon I think the issue comes in with intent.. and or a perceived scheme or repeatable business practices.
and I think were some get in trouble in the states that care to enforce these laws is they basically set up exactly like a real estate agent would
1. Website pictures of houses descriptions bed bath sq ft and the perception to the public that they own them when they dont.
2. telling sellers they are cash buyers when they really are not.. I get oh 10 plus yellow letters from the 15 markets I work each week I yet to see a yellow letter that did not basically say the exact same thing. I am a cash buyer I will pay cash at a time of your choosing no mention of assigning or helping to basically broker the home.
3. public advertising of homes they dont own ON BP see it every day, craigslist see it every day..
I think what happens is the regulators see these efforts simply as a ruse to circumvent the licensing laws. Oregon added a equitable interest chapter into their code.. IE you need a license if your business is trading in equitable interest .And you advertise in the public medium a home you don't' own your in trouble. But thats our state.
Now I get it you have a buyers list it goes to private folks ( guys are trying to put me on them daily LOL) I don't have the time or energy to wade through the stuff so I can see that.. but its still a business set up to create income or compensation for bringing two parties together .. I think this is where If and its a BIG if you get a complaint filed against you a regulator is not a complete moron they will see through most of this.. But in my mind if your state does not care then I don't personally care.. sheeet I fund all sorts of deals my guys buy from wholesalers... I am just commenting personally on the states that do care and the fact that there is some regulation when it comes to bringing parties together..
One off probate deals or Selling your trust interest are not schemes set up and on going business's.. there is a difference. I know we are not going to necessarily agree on this but I do like to have an intelligent conversation about it and talk about both sides... as its interesting to me how strongly both sides of the coin respond to this .. I am sure some guru's somewhere taught this and it has stuck .. If I was going to wholesale in a state without a license or sell real estate without a license and without actually buying the property prior to selling it ( what I have done for 40 years now) I would simply want to get a written confirmation from the regulating body ( department of real estate or whatever they call it in persons state) and put it in my file that my method or business model is allowed.. I would NO WAY take the advice of an attorney on this.. they are paid to argue.. regulators are paid to argue back guess who pays and who loses most of the time.. I have been there done that with regulators.. last attorney I listened to cost me 30k plus a lot of drama and aggravation.. of course he stills thinks we win at court... I said how much to get there.... answer 100k. only people that do that are big companies with millions at stake.. not me pay my money pay my fine and do it the way the state wanted..
I'm confused. So if I pay with cash that doesn't make me a cash buyer? If I sell my contract and they pay with cash is that not cash? Maybe not to you because you don't want it to sound right. To a person that has a house they need to move yesterday they don't care. Fact is they get the money. No one gets screwed because they know what it entails. Real estate agents don't sell every home they list and sometimes deals fall through with wholesalers. It happens but I rather rather post a sign that says "kick me im stupid" than screw someone over. It doesn't make sense in a real business. Im going to stop wasting my time with you guys, it's pointless. If someone sues me I will litigate it and win. Been there done that. Good day Sir.
Jonathan, a main point brought out by this and other similar topics is that each state is different. This topic is about OH. As I pointed out, my state (NC) and yours (SC) are different. We don't have the same issues as OH and have different laws that make this issue basically moot. In NC, the has a checkbox that basically is the 'wholesaler' checkbox, stating the seller does not yet own the property. How easy is that?
I sold a land parcel in SC about a month ago. The state law says, since I am out of state, I need to ... right there and now not next April... unless I can prove an exemption. I'm sure someone has tried to cook up a scheme to avoid the SC tax. Maybe treating timber sales as an installment sale. LOL! But I recognize what the law is for and comply.
If your future plans include 'wholesaling' in OH, the path of least resistance is to get a broker's license.
I've appreciate your opinion but I know many friends who wholesale in the great state of Ohio. You complicate things and get fined more not less being a RE agent. Do what you want but don't be surprised when you try to assign a contract as a RE agent and you get slapped with a fine and your license threatened. If you double close it doesn't matter what you have because the deed transfers to you and from you simultaneously. People on here love to argue but when presented the facts of law they just disregard it but a judge want.
@Pratik P. I haven’t had much of a problem, but I am a managing broker and hold my own license. You need to find a broker who is an investor and knows the lingo to hold your license. This is what I suggest.
Brett