Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
If I am trying to wholesale vacant land from people who are behind in taxes(preforeclosure) what needs to be on the contract? And do I need tobgo through a title company to get the deed?
Wholesaler · Sunnyvale, CA · Member since 2016 · 106 posts · 58 votes
7y
@Christopher Moss
I am a land investor and I can let you know that if you buy a property at 30% of MV, you’ll have no trouble selling it for 60%. Why bother to wholesale? It takes 30 days to purchase a property through a title company then you own it outright. If you find something at 30% and you do your due diligence you almost can’t lose. The only times I’ve tried to wholesale is if a parcel is landlocked and I don’t know how to value it. Wholesaling is definitely a grey area and I’m no lawyer. That being said lots of people do it, but you have to understand the nuances, marketing the contract not the property, etc. check out this article by Seth Williams to learn more about it:
https://retipster.com/wholesaling-made-easy/
The bottom line is this, you’re better off just finding a better deal and buying it than trying to wholesale.
Mcdonough, GA · Member since 2015 · 20 posts · 6 votes
9y
If the margin is large enough definitely go through title. It will be a lot of work otherwise. If you're wholesaling you'll want to resale around 50% market value so buy at 30% or less
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
So does my buyer cover title closing fees? Im just trying to figure out the best way to get started. I have a PDF of the land contract. Just not sure the exact way to fill it out so I am able to assign. Also not sure the best way to buold a solid buyers list
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
What you are trying to do, brokering using contracts, is a violation of FL law and considered brokering. The way to legally "wholesale" is to close and then advertise it. Advertising properties you do not own, unless licensed, is brokering. Go through a title company to make sure you have marketable title.
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
Im simply assigning my rights to purchase to a buyer. Perfectly legal. I know several individuals who do this, as well as doing it with residential real estate. I am just trying to find the best way to go about it
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
Using contracts to circumvent licensing is not legal. 475.43 The assignment clause was not invented to allow unlicensed people to broker. Advertise the properties, get reported, and then what?
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
I have absolutely no plans on advertising the property. Once I have a solid buyers list, I will than pursue getting the land under contract. Theres a difference in what i am doing. Getting the land under contract with an outclause " contingent on financing". The actual closing being an assignment of purchase through a title company
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
So you want to use a BS escape clause? Doesn't matter. Be careful who you pitch it to. Only one person needs to forward your email to the state. Like it or not, you ARE brokering by definition. As I noted, get reported and then you get to deal with the state. The two people I gave links to were using contracts to circumvent licensing law. They have a cease and desist permanently on their record. Emailing potential buyers IS advertising properties. If you don't own them, you are brokering. Lots of people have tried this game and got shot down by the state. Want to do it legally? CLOSE and then advertise. Perfectly legal. Signing contracts with no ability nor intention to close is FRAUD BY INDUCEMENT. NOT a good way to start dealing in RE IMO.
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
I see you are in Naples John. Im in Cape Coral. I also see you are a licensed realtor. Maybe you can answer a question for me. Im currently in sales and was actually looking into going to Larson to get licensed. Only problem is a have a Federal charge 10 yrs ago. I attempted to ask them if that would prevent me from working in the field, they said to contact the finger printing department. Contacted the fingerprinting department, they said contact Larson. Would love to get licensed and work for a company, but do not want to waste the money for education if my past is going to be a deterrent. I planned on quitting my job and jumping into the field. But didn't want to with a splid plan in place. Whats your opinions on that? Is there a way to find out for sure? Thanks in advance
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
I doubt a charge from ten years ago would stop you from licensing. Larsen is a great school and I recommend them often. Ten years ago is a LONG time and probably will not affect you. A recent charge, especially something such as fraud, etc might be frowned up. I know one guy that is trying to get licensed now but he has already been in trouble with the state once, and now has a current case against him. Something like may stop him from licensing. He is being investigated for brokering without a license and is playing the assignment game.
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
I just know that real estate is my end goal. Im only making 3 grand a month at my current sales job, and want better. I might just take the plunge. I wanted to get started wholesaling land so I had emergency funds in case I quit my job to do real estate, and I dont get accepted for one reason or another
Find their number, contact licensing, and tell them the situation. They can offer guidance on your situation. Have you ever thought of getting the record sealed or expunged?
Cape Coral, FL · Member since 2017 · 15 posts · 3 votes
9y
Its Federal so therevis no way to expunge it. I also have a few D.U.I's and driving charges as well as a domestic dispute. Non of them felonies except the federal one. Just felt like I would be shot down so I didn't go through with it
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
Talk to an attorney. I have seen people with some pretty serious stuff get their record fixed. Other option is to write the governor and ask for a pardon. As I stated, I suspect a 10 year old charge would not stop you from licensing. Talk to 3 or 4 attorneys, ask around, and see what your options are.
I will preface this by saying that while I am a lawyer, I am not currently your lawyer and I am simply providing educational information for purposes of discussion on this message board.
I'm a practicing attorney here in Florida and a decent amount of my work deals with administrative licensing issues w/ agencies like the DBPR. I have quite a bit of experience in the area and a 10 year old charge can absolutely prevent you from becoming licensed. If you are a convicted felon, that's almost certainly a bar to entry absent extraordinary circumstances. If it was a misdemeanor involving dishonesty or false statements, it could still have an effect but after 10 years you should be able to show sufficient rehabilitation. If you would like, send me a private message and I can give you some advice on whether licensing is possible/worthwhile.
Additionally, I agree that wholesaling is, at best, a legal gray area and DBPR in Florida is not afraid to act decisively to protect the interests of people who hold state licenses. I'm licensed as an agent but I would never even get close to wholesaling without a license. YMMV but I tend to be very risk averse when it comes to acts that could be construed as criminal.
Finally, Florida has very strict rules on sealing and expunging records so depending on your record, that may or may not be possible. I do 1-2 seals/expunges a week so I can likely give you some guidance there as well.
Richmond, VA · Member since 2018 · 47 posts · 20 votes
7y
I'm glad I came across this thread, as I was planning on doing exactly this with a property right outside of Orlando. I understand the concept of the law, it just hadn't occurred to me until I read this, and I certainly don't want to get into any legal trouble. I still want to pursue this deal, since the owner is willing to sell at my offered price and the margin could potentially be huge. Unfortunately I cannot afford to buy the property outright, and since it's vacant land , I'm not going to be able to get a bank loan. Hypothetically, if I were able finance property with a down payment and a monthly payment, would I then be able to market and sell the property within the confines of the law. I know this could be seen as trying to game the system, but I wold be completely forthright with the owner about what I was doing, and if there's nothing illegal about it, it could be worth a shot. Any advice would be greatly appreciated.
Wholesaler · Sunnyvale, CA · Member since 2016 · 106 posts · 58 votes
7y
@Christopher Moss
I am a land investor and I can let you know that if you buy a property at 30% of MV, you’ll have no trouble selling it for 60%. Why bother to wholesale? It takes 30 days to purchase a property through a title company then you own it outright. If you find something at 30% and you do your due diligence you almost can’t lose. The only times I’ve tried to wholesale is if a parcel is landlocked and I don’t know how to value it. Wholesaling is definitely a grey area and I’m no lawyer. That being said lots of people do it, but you have to understand the nuances, marketing the contract not the property, etc. check out this article by Seth Williams to learn more about it:
https://retipster.com/wholesaling-made-easy/
The bottom line is this, you’re better off just finding a better deal and buying it than trying to wholesale.
Specialist · Los Angeles, CA · Member since 2019 · 587 posts · 269 votes
7y
@Godwin Imasuen Hi Godwin, can always post your land under for sale > other on the marketplace. Please feel free to reach out to me if you would like assistance on other places to post wholesale land. Best of Luck!
Naples, FL · Member since 2018 · 3 posts · 0 votes
7y
@Erin Spence hey Erin i actually need help with direct mailing. I have a list that i cold call & for the people that i couldn’t reach i would like to direct mail them so if you could aid me on how to do so i would appreciate it !