Answer to legal wholesale aspect before beginning resesrch

3 Replies

I have recently gained interest in wholesaling.  I started doing a little research when I came across the legal aspect of it. I am in Mobile, Alabama and can't find anything telling me if it's legal or not here. Maybe I'm not searching correctly or the answerr is front of me and I don't know. 

I only known the basics which is being the middle man between seller and buyer for a few. I wanted to figure out if I could do that here legally before doing tons of research. If indeed it is legal I am pretty determined to be VERY great at it.I have never been more serious about something in my life. THANKS in advance. 

@Victor Mercado I would suggest getting your real estate license. Then there’s no question about whether you’re allowed to get paid for being the middleman between buyer and seller.

Tons of other benefits too.
- Great real estate education.
- Bigger market of potential customers.
- Immediate trust and respect from people on the subject of real estate.
- A huge network of colleagues to lean on and learn from.

I know this because I started out trying to wholesale. I didn’t get any deals done.

I got my license, and did 12 retail deals my first year. Plus another 8 deals for my own account.

I’ve also actually got 3 wholesale deals going on right now because other wholesalers have asked me to help them sell deals to buyers I met as an agent.

Just something to think about. Good luck!

@Victor Mercado I would listen to the advice on offer by @Rob Drum . Contrary to the usual guru pitch of "no money down", wholesaling is a hard business during the best of times. It also has a high rate of attrition and is illegal in some states. 

You should look into the real estate agent requirements (at the minimum) if you want to stay within the residential space long-term. If nothing else, it will provide you a better understanding of the process. You will still have to learn investing but that's another topic.

@Victor Mercado , first welcome. Assigning contracts is LEGAL in every state!! What you need to find out is, HOW TO DO IT LEGALLY. Some states may require you to be a Realtor, other states may place a cap on the # of assignment deals you can do, etc. The question is not IF it's legal, but how to do it legally in your state.

You need to do tons of research in any aspect of real estate investing. One of the best ways is to actually network with individuals, face to face. Therefore I would suggest you go to your local REI meetings and start introducing yourself, that's where you will meet other wholesalers in your area.