Real Estate Agent · Selden, NY · Member since 2016 · 39 posts · 9 votes
I used to live in Jacksonville but there we're just to many wholesalers out there . I am looking to move back to Florida but Tampa this time . Any advice would be perfect .
There are only TWO ways to legally "wholesale" 1. own the property 2. be licensed Using contracts to circumvent licensing is ILLEGAL and a violation of 475.43. Advertising properties you do not own, unless licensed, is illegal. As long as you purchase first, or are licensed, you are good to go. Otherwise, the state can and will shut you down with a cease and desist on first offense, with the right to prosecute if they desire. The gurus never teach the truth about "wholesaling" and people that take their advice can end up with legal problems.
I could be wrong, but I feel like I always see a lot of deals in the Bigger Pockets marketplace for Tampa, which makes me wonder if there aren't a lot of wholesalers in Tampa... or else the wholesalers just are more tuned in to this website than the ones from other Florida cities...
There are only TWO ways to legally "wholesale" 1. own the property 2. be licensed Using contracts to circumvent licensing is ILLEGAL and a violation of 475.43. Advertising properties you do not own, unless licensed, is illegal. As long as you purchase first, or are licensed, you are good to go. Otherwise, the state can and will shut you down with a cease and desist on first offense, with the right to prosecute if they desire. The gurus never teach the truth about "wholesaling" and people that take their advice can end up with legal problems.
John I have never heard of anyone going through legal problems because they were wholesaling . Maybe if they were trying to act as a realtor
That is EXACTLY what advertising properties you do not own is--BROKERING. These guys were using contracts to circumvent licensing law. They had contracts to purchase, but were advertising properties, did not own them, and were not licensed. This is what the gurus teach, however, it is illegal. https://www.myfloridalicense.com/sto/unlicensedact...
475.43 lays it out very clearly--but the gurus and uneduated don't. Advertising properties--not owned by an individual advertising them, is BROKERING--acting as an agent.
Correct me if I am wrong, but I believe the main thing @John Thedford is talking about is when people aim to assign contracts without the owner's knowledge.
But to answer your original question @Chris Ntwali, yes there are quite a few Wholesalers in the Tampa Bay area, some good (that do business legally and ethically) and some bad, just like any real estate market. Tampa Bay is incredibly hot and there are a LOT of distressed homes to buy, so it is definitely a great market to wholesale in, you just need to do your research beforehand and choose who you do business with carefully.
I am an investor friendly Realtor and wholesaler in Tampa Bay, so if you have any questions, I would be more than happy to answer them. Thanks and good luck!
Correct me if I am wrong, but I believe the main thing @John Thedford is talking about is when people aim to assign contracts without the owner's knowledge.
But to answer your original question @Chris Ntwali, yes there are quite a few Wholesalers in the Tampa Bay area, some good (that do business legally and ethically) and some bad, just like any real estate market. Tampa Bay is incredibly hot and there are a LOT of distressed homes to buy, so it is definitely a great market to wholesale in, you just need to do your research beforehand and choose who you do business with carefully.
I am an investor friendly Realtor and wholesaler in Tampa Bay, so if you have any questions, I would be more than happy to answer them. Thanks and good luck!
It does not matter if they know whether you intend to assign the contract or not you cannot legally advertise properties you do not own that is a violation of 475 43 advertising properties for another is a brokerage service and requires a license
Fair enough. I am curious though, if that is the case, on the Florida As-Is contract (FARBAR), for example, why are contracts still accepted when either the "this contract is assignable" box or the "this contract is assignable to..." box is checked off? Clearly Title Companies wouldn't accept those contracts. Wouldn't they be void?
the assignment Clause was never put in the contract to allow people to broker without a license there are valid reasons for assignment of contract as to my statements about brokering read 475.43 this is the law that prohibits using contracts to broker without a license it also states that advertising property one does not own is it illegal unless you are a licensee
Fair enough. I am curious though, if that is the case, on the Florida As-Is contract (FARBAR), for example, why are contracts still accepted when either the "this contract is assignable" box or the "this contract is assignable to..." box is checked off? Clearly Title Companies wouldn't accept those contracts. Wouldn't they be void?
475.43 was written into the statutes because of the abuse by people using contracts to broker without a license and also because of the amount of victims these people were harming
Fair enough. I am curious though, if that is the case, on the Florida As-Is contract (FARBAR), for example, why are contracts still accepted when either the "this contract is assignable" box or the "this contract is assignable to..." box is checked off? Clearly Title Companies wouldn't accept those contracts. Wouldn't they be void?
Zach: to expound a little further, valid reasons for the assignment clause could be: 1. a family member finds a property for another member and wants to lock it up before taken 2. the buyer may have three or four entities, and wants to decide at a later date which one to take title in 3. a buyer decides to take on a partner and put it into an LLC between the parties The assignment clause was NOT put in the contract to allow unlicensed people to play games and broker without a license. This is why the state dealt with the problem in 475.43. There are many people being harmed by "buyers" putting properties under contract with no intention or ability to close. 475.43 addresses theses FRAUDS AND SCAMMERS.