Wholesale Oregon Basics

29 Replies

Originally posted by @Mike Nuss :

@Luke Lesh you won't find anything in the ORS that states specifically "wholesaling is illegal". Reason being, "wholesaling" is not a defined real estate term. It's used all the time, but wholesaling happens in all sales industries and all states. It's a simple term, not a recognized real estate term. Hence it's not in our statutes. 

Oregon has a "definition of real estate activity" and "wholesaling" as taught by gurus, does in fact fit in the "definition of real estate activity" per the State of Oregon. So if you're wholesaling, without a license, you are breaking the law. In fact, even if you do have a license, "wholesaling" as taught by a guru is probably illegal as well. 

It really all comes down to marketing. You cannot market a property you do not own without a real estate license. That is clear as day and night in the Oregon statutes. This fact gets argued all the time on BP, but it isn't even debatable in my opinion. The whole "buyer's list" discussion pretty much makes it black and white to me. 

Now, "Assigning" a property is legal and will be facilitated by local title companies. It's the "marketing a property you do not own" (or have a listing agreement with the owner) in order to do that "wholesale" that breaks the law. 

that's the rub  assigning goes on B to B as we know.. what gets taught is simply selling real estate with out a license.. no way someone is going to take a course and be able to assign contracts without advertising the houses on social media craigslist etc.  and that's were it all comes to a stop.. in the development world we do assignments often.. I paid 125k for an assignment of a 90 lot project I am buying in Canby.   however the person I paid did not advertise it .. it was strictly B to B and that works in the eyes of the agency.   

@Jay Hinrichs you and I view this topic exactly the same.  That's just normal course of business (and smart business for that matter) as an active developer in my opinion. 

@Jay Hinrichs how much did you pay per lot in Canby? 400K houses? Roads/sides in already? That's a big project for Canby, although the city has grown quite a bit over the past decade+.

Originally posted by @Mike Nuss :

@Jay Hinrichs you and I view this topic exactly the same.  That's just normal course of business (and smart business for that matter) as an active developer in my opinion. 

 in our market  you have west side assigning lots to Horton.. Horton swaping or assigning to lennar.. Ploygon same thing. it all happens at a different level.. then you have us little guys picking up the crumbs. :_)

@Jay Hinrichs my favorite was the post crash, pre run up, when you had Arbor building in DR Horton hoods and DR Horton building in Arbor hoods. Same floor plans, same everything, but different builders that no longer were the same as the builder noted on the entry sign for the subdivision. They couldn't get the lending for stuff they already owned, but they sure could get lending on new projects so they just started swapping land. So funny.