Wholesaling in South Florida

16 Replies

Hello Guys! 

So... writing this as I am in the BP Webinar and Brandon just answered my question "How do I get started in Wholesailing?"

Part of his answer was to ask a wholesaler... So here I am asking! ...

Is there an wholesaler out there that I can meet with and gain some knowledge from??  I am ready to start now! I've already put some bandit signs out, flyers at libraries/unemployment offices, and posted craigslist ads, but only a few buyers have called... which is great! But no sellers.

I will be operating under my own LLC and my goal is to start wholesaling to generate enough capital in order to buy and hold multi-families and fix & flip single families by June 2018

I am currently working with a RE Agent out of West Palm Beach, which he has the Cash Buyers/Investors... 

I live in Coral Springs, FL which is a pretty central location between Broward County and Palm Beach County.

Once again, I would love to meet with anybody thats willing to share some knowledge and give some feed back on my strategy

Thanks! 

Drew

Keep in mind an agent MAY advertise properties they do not own (in fact, that is their business). Other unlicensed individuals may NOT advertise properties they do not own without violating 475.42 and 475.43.

These activities are considered BROKERAGE activities and require a license.
475.43 put an end to using contracts to circumvent licensing law.
A BAR SALE
ADVERTISE
Buy
Appraise
Rent
Sell
Auction
Lease
Exchange
FOR ANOTHER...
So, your agent friend CAN advertise the properties legally. You cannot. You CAN advertise a contract, but if/when you show THE PROPERTY you have crossed the line into brokering without a license.
These people got in trouble even though they had contracts on the properties:
https://www.myfloridalicense.com/sto/unlicensedact...

https://www.myfloridalicense.com/sto/unlicensedact...

Hey Drew! I think what John is describing for you is the letter of the law, which is important to know. Even @Brandon Turner has acknowledged that wholesaling is a fine line, but it is still possible to do it legally. Be sure that you tread carefully and understand the laws but don't be deterred. I would be glad to explain to you what I know about wholesaling. I am sure if you listened to the Webinar you know that it's actually a complex process. Shoot me a message and we can discuss further. Good luck!

@Drew Bell

There are TWO WAYS to legally "wholesale":
1. buy and then resell
2. be licensed

You DO NOT want your name to appear here:
https://www.myfloridalicense.com/sto/unlicensedact... that COULD affect any licensing for any registered profession now or in the future. 

My biggest issue with most of these operators is the fact they are FRAUDS AND SCAMMERS putting properties under contract with no intention of closing if they cannot assign. Now FL has addressed using contracts to broker and refers to them specifically in 475.43. The assignment clause was NEVER meant for people to broker without a license. It has a valuable and credible place in transactions where a buyer can sign the contract in their name, and then put the property into an LLC or S Corp, or where a buyer signs and then takes on a partner and both need to be on title. Due to the number of VICTIMS of FRAUDS AND SCAMMERS the state had to deal with these cockroaches in 475.43.

If you know people that are operating illegally, notice they typically try to hide their personal info, the property address, their phone, etc. They KNOW they are violating the law, don't care, and will try to get away with anything for a buck. If they are willing to do this, can they be trusted to be honest elsewhere? I doubt it.

I turn in every one and reported at least 2 last week. I don't hide anything and put my name on the complaint form. You, or others can file a complaint here:
http://www.myfloridalicense.com/dbpr/re/documents/...

These people are not allowed to break laws because they don't like them. Some may be scumbag criminals that cannot get licensed like this guy that tried to broker a deal here locally:

RRESTS (Collier County Only) Arrest records made on or after 1/1/2007 (last 10 years) were searched.
Court Records
Arrested Person Name: 
Booking Date08/26/2016AgencyNPD
Booking Number201600006689Age at Arrest37
ChargedCountOffenseHold ForCase NumberCourt Date
08/26/2016001HEROIN-TRAFFIC 4 GRAMS - 30 KILOGRAMS24S16-1551CF09/19/2016
08/26/2016001COCAINE-POSS WIT SELL MFG DEL SCHEDULE II16-1551CF09/19/2016
08/26/2016001BARBITURATE-POSS WIT SELL MFG DEL SCHEDULE II III OR IV16-1551CF09/19/2016
08/26/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-1551CF09/19/2016
08/26/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-1551CF09/19/2016
08/26/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-1551CF09/19/2016
08/26/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-1551CF09/19/2016
08/26/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-1551CF09/19/2016
08/26/2016001DRUG HLTH/SFTY-POSS HARMFUL NEW LEGEND DRUG WO PRESCRIPTION16-1551CF09/19/2016
08/26/2016001NARC EQUIP PARAPHERNALIA -POSSESS AND OR USEWIDMAN ACT16-1551CF09/19/2016
08/27/2016001VOSP/COLLIER COUNTY-WIDMAN ACT24S16-000647CF09/14/2016
08/27/2016001VOSP/COLLIER COUNTY-WIDMAN ACT16-000355CF09/14/2016
Jail Summary
09/14/2016 TIME SERVED
Bond Amount
$120,000.00
Arrested Person Name: 
Booking Date04/03/2016AgencyCSO
Booking Number201600002800Age at Arrest36
ChargedCountOffenseHold ForCase NumberCourt Date
04/03/2016001POSSESS COCAINE24S16-647CF04/25/2016
04/03/2016001DRUGS OTHER-POSS CONTROLLED SUBSTANCE16-647CF04/25/2016
04/03/2016001TRAFFIC OFFENSE-DUI ALCOHOL OR DRUGS 1ST OFF16-647CF04/27/2016
04/03/2016001MOV TRAFF VIOL-VIOLATE RESTRICTIONS PLACED ON DRIVERS LICENS16-647CF04/27/2016
Jail Summary
07/11/2016 TIME SERVED
Bond Amount
$12,000.00
Arrested Person Name: 
Booking Date02/17/2016AgencyNPD
Booking Number201600001382Age at Arrest36
ChargedCountOffenseHold ForCase NumberCourt Date
02/17/2016001POSSESS COCAINE16-355CF03/14/2016
02/17/2016001MARIJUANA-POSS NOT MORE THAN 20 GRAMS16-355CF03/14/2016
02/17/2016001NARC EQUIP PARAPHERNALIA -POSSESS AND OR USE16-355CF03/14/2016
Jail Summary
02/18/2016 BONDED
04/03/2016 BOND REVOKED
07/11/2016 TIME SERVED
Bond Amount
$5,000.00
Arrested Person Name: 
Booking Date03/28/2014AgencyCSO
Booking Number201400002945Age at Arrest34
ChargedCountOffenseHold ForCase NumberCourt Date
03/28/2014001OPIUM OR DERIV-POSS CONTROLLED SUBSTANCE24S14-644CF04/21/2014
03/28/2014001OPIUM OR DERIV-POSS CONTROLLED SUBSTANCE14-644CF04/21/2014
03/28/2014001DWLSR DRIVE WHILE LICENSE SUSPENDED14-1085CT04/23/2014
03/28/2014001VOCP/POSSESSION OF MARIJUANA < 20 GRAMS (WARRANTLESS)13-409MMA04/07/2014
12/06/2014001FUG/CHARLESTON SC/CONTEMPT OF COURT ON SECURITY VIOLATIONSOUTH CAROLINAO2014B10001008212/29/2014
Jail Summary
12/07/2014 TIME SERVED
12/12/2014 ROR
Bond Amount
$60,000.00
Arrested Person Name: 
Booking Date08/21/2013AgencyCSO
Booking Number201300007385Age at Arrest34
ChargedCountOffenseHold ForCase NumberCourt Date
08/21/2013001OPIUM OR DERIV-POSS WIT SELL MFG DEL SCHEDULE I OR II24S13-1654CFA09/16/2013
08/21/2013001OPIUM OR DERIV-SELL SCHEDULE I OR II13-1654CFA09/16/2013
Jail Summary
08/22/2013 BONDED
03/29/2014 BOND REVOKED
12/06/2014 TIME SERVED
Bond Amount
$10,000.00
Arrested Person Name: 
Booking Date07/23/2013AgencyPRO
Booking Number201300006504Age at Arrest34
ChargedCountOffenseHold ForCase NumberCourt Date
07/23/2013001VOCP/POSSESS MARIJUANA < 20 GRAMS WARRANTLESS13-409MMA08/05/2013
07/23/2013001VOCP/POSSESS, USE NARC PARA WARRANTLESS13-409MMA08/05/2013
Jail Summary
07/30/2013 BONDED
Bond Amount
$2,000.00
Arrested Person Name:
Booking Date06/25/2013AgencyCSO
Booking Number201300005748Age at Arrest34
ChargedCountOffenseHold ForCase NumberCourt Date
06/25/2013001DWLSR DRIVE WHILE LIC SUSPENDED 2ND CONVICTION24S13-2058CT07/19/2013
Jail Summary
No information available.
Bond Amount
$5,000.00
Arrested Person Name: 
Booking Date06/19/2013AgencyCSO
Booking Number201300005586Age at Arrest34
ChargedCountOffenseHold ForCase NumberCourt Date
06/19/2013001SYNTH NARC-POSS CONTROLLED SUBSTANCE24S13-1263CFA07/15/2013
06/19/2013001THEFT-PETIT THEFT - UNDER $10013-1263CFA07/15/2013
Jail Summary
06/20/2013 BONDED
06/26/2013 BOND REVOKED
07/17/2013 RE-BOND
03/29/2014 BOND REVOKED
Bond Amount
$4,000.00
Arrested Person Name: 
Booking Date02/18/2013AgencyNPD
Booking Number201300001657Age at Arrest33
ChargedCountOffenseHold ForCase NumberCourt Date
02/18/2013001MARIJUANA-POSS NOT MORE THAN 20 GRAMS13-409MMA03/13/2013
02/18/2013001NARC EQUIP PARA -POSSESS AND OR USE13-409MMA03/13/2013
Jail Summary
02/19/2013 BONDED
06/20/2013 BOND REVOKED
06/20/2013 RE-BOND
06/26/2013 BOND REVOKED
Bond Amount
$4,000.00
 
End of detail.Top of Page
Originally posted by @Justin Browne :

Hey Drew! I think what John is describing for you is the letter of the law, which is important to know. Even @Brandon Turner has acknowledged that wholesaling is a fine line, but it is still possible to do it legally. Be sure that you tread carefully and understand the laws but don't be deterred. I would be glad to explain to you what I know about wholesaling. I am sure if you listened to the Webinar you know that it's actually a complex process. 

There are two ways to legally "wholesale":
1. own it
2. be licensed

This is not to confuse flipping with playing the assignment game. As I told the OP, don't get in trouble playing the games many do. If you find yourself in trouble for violating license laws, etc that could hinder any future attempt for ANY professional license in this state. The state also looks at loss of a professional license in other states and will deny an applicant on that regardless of profession. 

check out this guy:

https://www.myfloridalicense.com/sto/unlicensedact...

Last I looked he now has a second active investigation for unlicensed brokering. He was involved in a local case where there was a lawsuit and counter suit. The owner of the property is pushing for the state to bring felony charges. We will see if that happens but truthfully i DO hope so.

@John Thedford it's clear that you are really really anti-wholesaling but trying to scare any person who posts about wholesaling in Florida is probably not the best approach. There are a lot of smart people in the BP community here in Florida; lawyers, agents, accountants, etc. You basically put everyone on notice, which is fine, but you're being very aggressive about it. Please allow these intelligent people to read the law and either interpret for themselves or work with a lawyer to interpret. You are not the legal authority on real estate brokerage. I don't think the BP community needs this rhetoric about "cockroaches" and "scumbag criminals." Treat people like professionals as most of us are. Advising people politely and encouraging them to understand the law before they think about wholesaling is one thing, but the scare tactics are uncalled for and frankly, rude. Good day sir.

Get your real estate license, be a sponge and learn everything you can, get a flexible job making a lot of money and meeting people (like a bartender at a nice hotel or rest.) while you learn the ins and outs of being an agent, live modestly, and then you can buy and hold when you have $ and the knowledge to correctly analyze deals!

Statutes are fact. People brokering real estate illegally and hiding under the cover of anonymity are just like cockroaches that scurry from the light. 

Originally posted by @John Thedford :

Statutes are fact. People brokering real estate illegally and hiding under the cover of anonymity are just like cockroaches that scurry from the light. 

 So you mean to tell me, wholesaling has been illegal this whole time and people are becoming some what successful from it.

 I learn something new everyday :)

Statutes are in fact, not fact. That's why we have the courts - to interpret those statutes. Again, a job better left to lawyers and judges than real estate brokers. 

Originally posted by @Jason Rodriguez :
Originally posted by @John Thedford:

Statutes are fact. People brokering real estate illegally and hiding under the cover of anonymity are just like cockroaches that scurry from the light. 

 So you mean to tell me, wholesaling has been illegal this whole time and people are becoming some what successful from it.

 I learn something new everyday :)

If you read my previous post there are two ways to legally wholesale 

@John Thedford Lol I'm sorry man but I'm not reading through the arrest records when I see drug related offenses while I'm looking to gain connections from local wholesalers. I've done the research and talked with other professionals in the industry. I know how to do this legally while helping people get out of their financial situation. Thank you for your input though. 

Originally posted by @Drew Bell :

@John Thedford Lol I'm sorry man but I'm not reading through the arrest records when I see drug related offenses while I'm looking to gain connections from local wholesalers. I've done the research and talked with other professionals in the industry. I know how to do this legally while helping people get out of their financial situation. Thank you for your input though. 

Great. It is comforting to know that there are so many unlicensed brokers willing to help the public because the hundreds of thousands of licensed agents with education, oversight, and E&O are not capable of helping them:)

Maybe the state will come up with a new license category for these activities LOL!

The guy with the long arrest record I posted above may be looking for partners LOL.

These are licensed activities (brokerage)
A BAR SALE
ADVERTISE
buy
appraise
rent
sell
auction
lease
exchange
FOR ANOTHER....so playing middleman without a license IS brokering without a license...a 3rd degree felony per 475.42.
Flipping is 100% legal...NO license required

It doesn't matter what title someone wants to claim...what matters is whether they are violating FL law and brokering without a license. I have shut down a Lot of them. I don't generally post their names on BP..and some are BP members. 

This childish discussion isn't helping anyone. If you've said everything you think is actually helpful to people like me trying to learn something, I'd say leave it at that, please. 

Also, none of what has been posted has had anything to do with the OP's question about his strategy. At all.

So other than the legality of Wholesaling, I have the same questions as the OP, and I am also co-located in Florida. Some local insight would be most helpful, but can any pros remember their first few deals and talk about how they made it happen? I think the OP and I would love to hear that.