Wholesaling in FL with and without a RE License
Deerfield Beach, FL · Member since 2018 · 3 posts · 1 vote
Wholesaling in FL with and without a RE License
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Specialist · Salem, OR · Member since 2015 · 86 posts · 54 votes
8yHey welcome to the wonderful world of real estate investing.
First things first: You DO NOT need a license to wholesale or invest in general. If you have a property under contract you can 100% market THE CONTRACT but not the "house" technically. You do have an equitable interest in the property no matter what people try to tell you.
You are going to learn really fast that most Real Estate Agents don't know jack about real estate other than MLS listing so listening to agents (in many cases your competition) about rules when it comes to investing is a terrible idea in most cases.
IF you get your license it will help and hurt you so make sure you know the pro's and con's before spending all that money to get your license. Yes you will need to hang it if you plan on using it and yes you will have to pay the fee's just like an agent does. You will also need to be aware of the rules each broker has because some will be a pain in your *** and have rules about how you can do deals (some not all).
Feel free to ask me any questions you have. I'll do what I can to make sure you don't get bad info.
55 Replies
- 8yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Skylar Simpson:
Originally posted by @Jay Hinrichs:
Originally posted by @Skylar Simpson:
Originally posted by @Jay Hinrichs:
http://ccbed.ccb.state.or.us/WebPDF/CCB/Publicatio...
per your request read this and then call the state you will see that If you buy a property with the intention of selling it for a profit you need either a GC license ( test required) or a developers license ( no test required) both require bond and insurance..
Aw I see where the confusion was. I'm not a developer nor am I a flipper. I buy pretty houses that need no work and either keep them in my portfolio or resell if they do not fit. Interesting though.
as long as you don't work on them I think your good to go.. its when your doing work on them that the issue arises and since I build new construction of course I need one..
but when I was basically the largest foreclosure buyer back In the day I did not have one either and had no clue I needed one.. and I was buying an flipping 100 or so houses a year in PDX market.. but I bet if you look at like Gorrilla or Bull dog or other big foreclosure buyers you will see they all have developers licenses..
Oh absolutely. When I begin to purchase some apartment complexes here soon I'll make sure to keep that in mind :)
lastly on the great state of Oregon .. the other thing that become illegal that most don't know about.. I amassed a pretty sizable rental portfolio back in the 2000 to 2005.. all of them bought pre foreclosure usually within 1 to 2 days before they were going to sale. that's when you got the smokin deals.. and then I would lease them back to the owner who was losing it because they did not want to more or move kids out of schools I did probably 500 of those and when the people ended up leaving usually within 18 months I just sold them as I did not want to be in the rental bizz.. and I had nice equity in each one.. as I had little to no competition buying 1 to 2 days pre auction date. not many had the cash we did could do their own title and escrow like I did .. and took title with no title insurance like I did.
well in 07 Oregon and Washington made this illegal you could no longer buy a preforclosure and lease back to the old owner.. And again I bet plenty of people do it but don't realize its illegal and even if they buy it and then flip it they owe a certain amount of their gain back to the people that lost it.. I got turned into the AG in Washington over this one LOL.. we were fine nothing came of it.. but we quite doing it once it became illegal.
- Specialist · Salem, OR · Member since 2015 · 86 posts · 54 votes8y
Originally posted by @Jay Hinrichs:
Originally posted by @Skylar Simpson:
Originally posted by @Jay Hinrichs:
Originally posted by @Skylar Simpson:
Originally posted by @Jay Hinrichs:
http://ccbed.ccb.state.or.us/WebPDF/CCB/Publicatio...
per your request read this and then call the state you will see that If you buy a property with the intention of selling it for a profit you need either a GC license ( test required) or a developers license ( no test required) both require bond and insurance..
Aw I see where the confusion was. I'm not a developer nor am I a flipper. I buy pretty houses that need no work and either keep them in my portfolio or resell if they do not fit. Interesting though.
as long as you don't work on them I think your good to go.. its when your doing work on them that the issue arises and since I build new construction of course I need one..
but when I was basically the largest foreclosure buyer back In the day I did not have one either and had no clue I needed one.. and I was buying an flipping 100 or so houses a year in PDX market.. but I bet if you look at like Gorrilla or Bull dog or other big foreclosure buyers you will see they all have developers licenses..
Oh absolutely. When I begin to purchase some apartment complexes here soon I'll make sure to keep that in mind :)
lastly on the great state of Oregon .. the other thing that become illegal that most don't know about.. I amassed a pretty sizable rental portfolio back in the 2000 to 2005.. all of them bought pre foreclosure usually within 1 to 2 days before they were going to sale. that's when you got the smokin deals.. and then I would lease them back to the owner who was losing it because they did not want to more or move kids out of schools I did probably 500 of those and when the people ended up leaving usually within 18 months I just sold them as I did not want to be in the rental bizz.. and I had nice equity in each one.. as I had little to no competition buying 1 to 2 days pre auction date. not many had the cash we did could do their own title and escrow like I did .. and took title with no title insurance like I did.
well in 07 Oregon and Washington made this illegal you could no longer buy a preforclosure and lease back to the old owner.. And again I bet plenty of people do it but don't realize its illegal and even if they buy it and then flip it they owe a certain amount of their gain back to the people that lost it.. I got turned into the AG in Washington over this one LOL.. we were fine nothing came of it.. but we quite doing it once it became illegal.
Haha I actually heard about something similar to this - sucks learning the hard way but at least you know better for next time. One of these days we'll have to go out for coffee and chat. I've always had an interest in development but haven't gone that route yet.
Originally posted by @Marco Petit:
I'm not an attorney so don't take this as legal advice.
I'm in South Florida and I just wholesaled a property last Friday. You are marketing an assignable contract on a property so you aren't necessarily breaking any laws. You are the principal and have equitable interest in a property. I, along with many other investors I know personally, have done a ton of wholesale deals with and without a RE License.
If you have a RE License, it is best you hang it with an investor friendly brokerage. Be sure to use one that doesn't require a bunch of fees just for being there and such (I know a couple) also let them know what you are doing because they are responsible for you. They don't get anything from your individual wholesaling activities. They do, however, get a piece of the action if you list a property and that depends on your broker's pay structure.
In my humble opinion, you should always look for ways to make something work. Not the opposite. Go get em!
Originally posted by @Marco Petit:
I'm not an attorney so don't take this as legal advice.
I'm in South Florida and I just wholesaled a property last Friday. You are marketing an assignable contract on a property so you aren't necessarily breaking any laws. You are the principal and have equitable interest in a property. I, along with many other investors I know personally, have done a ton of wholesale deals with and without a RE License.
If you have a RE License, it is best you hang it with an investor friendly brokerage. Be sure to use one that doesn't require a bunch of fees just for being there and such (I know a couple) also let them know what you are doing because they are responsible for you. They don't get anything from your individual wholesaling activities. They do, however, get a piece of the action if you list a property and that depends on your broker's pay structure.
In my humble opinion, you should always look for ways to make something work. Not the opposite. Go get em!
Im in SW FL and will be getting my RE License by April 21' do you have any recommended REI Broker that I can hang my license so I can wholesale at the same time?
Originally posted by @Vania Cortez:
So my next question would be how to find a broker who will allow me to hang my license if my intentions are ONLY to wholesale?
I have no problem going for the license but I want to have a clear understanding if there are brokers out there in FL that will allow me to hang my license and practice wholesaling as long as I pay the broker's fees. This is where I'm having trouble finding this information.
Reading the thread, I didn't think you ever got the answer to this question. I am in the process of getting my RE license and is planning on looking for a broker to hang my license while I wholesale. I'm curious what you learned from your experience.
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