Full time wholesalers
Flipper/Rehabber · Jacksonville, FL · Member since 2019 · 30 posts · 53 votes
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
I tend to scroll through BP when I’m laying my son down but rarely post. This discussion spurred me to make a rare exception.
Wholesaleing is not illegal or at least not in Texas. I’ve closed 8 deals in 2017, 21 in 2018, and 9 so far this year. Why only 9, because I’ve graduated to the next stage and involved in 2 flips. Wholesaleing has been and always will be my baseline to find deals for whatever strategy I want to pursue ( rehabs, rentals, owner finance, etc).
On to the seller side of things. Most of these properties need a ton of work and most agents won’t touch them without a cleanup and work done to them that costs money that the seller doesn’t have. They are distressed and need someone with knowledge to help them. That’s where I come in and I am compensated well for it.
EVERY one of my sellers have said thank you when it’s all said and done with many testimonials.
Heck I can confidently say I know more about the market as a wholesaler than probably 90% of the realtors in my markets. How??? Because I talk to 20-30 sellers per month and run mls based comps and submit offers to almost all the sellers I talk to. Why would I want to settle for 3% commission with the knowledge I have and the time and energy I spend helping the seller? There is nothing wrong with getting paid well for knowledge and your time.
The key thing I will say is to know what your doing and don’t lock up the property if your not confident you have a buyer for it at the contracted price. That just gets the sellers hopes up and they come crashing down when you back out. No one deserves to be treated like that. At a minimum pay a reasonable earnest money deposit fee if you do need to back out as that’s doing the right thing which I have done on the very few properties I was unable to close on.
Anyway just my thoughts.
@James Wise, I understand how you feel about wholesalers, and that many other people have felt the same way. What I have found is that some wholesalers are better than others. Since wholesaling is an attractive entrance into real estate investing, it attracts a lot of people. Those who are successful are honest, hard-working, and have taken the time to really learn how to do the business. They also have an honest desire to help everyone involved - the seller and the buyer.
No, wholesaling isn't illegal. As with anything, there are right ways and wrong ways to do it, and that can vary from state to state. If I didn't know several wholesalers that were successfully and legally doing this, as well as several buyers that love working with wholesalers, I might have more concerns since I keep hearing this sentiment pop up from time to time.
As you said, some wholesalers will lie to the seller and tell them that they are going to buy their house without as much as a hint about the fact that they are going to assign the contract. Others will be very clear from the start that they are going to assign the contract. Personally, regardless of which side of the conversation I'm on, I prefer honesty. It works out better in the end.
Personally, I think if you go around the wholesaler direct to the seller, (1) the wholesaler doesn't know what they're doing because they should already have a contract with the seller, and (2) if the wholesaler is good at finding deals and you're only interested in screwing them over, they're not going to bring any new deals to you - only to your more honorable competition. Karma, baby.
Wholesalers really can be good, honest people who are really helping out, and getting paid in the process. But as with any profession, there are those who are good and those who are not so good.
As for your bullet points, you got those right. Good job!
OMG why is there always a fight when wholesaling is mentioned.
Always these select few bishing about it.
Dudes really. This is boring, annoying even.
Don;t like the Q, friggin don't answer. Do you really just sit there waiting someone mentions wholesaling for you all to show how much you know about how illegal it is?
No?
Because that si what you are doing.
OVER and OVER and OVER again. How often have you jumped on and attacked people who even say the word "wholesaling". For petes sake enough!!!
By select few do you mean those fellas on this thread who together have decades of experience in the industry and have transacted well over $1B in real estate sales? Funny how having the education, licensing, experience and wherewithal to see what the rules are and then transact business in a way that complies with them leads to so much success isn't it? But hey man as you said "bishing is so boring"
And now you are attacking me.. because I am tired of that childish crap. sigh.. go at it friend. Let me see if electrons bombared at my screen thereby forming letters on my screen hurt me in any way...
Well what do you know. It just doesnt phase me at all. Yaaay!
Who are you kidding feller. The guy simply asked "what would you tell yoursefl if you had a second go" that's it. Your $1B in sales and your amazing awesomeness and education has no place for this specific question. Are you really going to sit there and tell me your rant was well placed? Come now.
But if it makes you feel better... let it all out! There there. Feel better now?
phhhst
BTW...
You telling anyone that because you have done $1B in sales is by no means a result, motive, consequence or indication you are right or correct.
:D
BTW2
Anyone that needs yell bark and force their point across to prove and try hard to make sure they are right, by trowing up all sorts of unrelated things to drive their point... often really is not right.. and very insecure.
Just an FYI ;)
Jerryll you might be my favorite BP member. I enjoy when we conversate on topics. However, if you're going to come on and speak from a position of authority to those who are looking to learn you should educate yourself on the legalities of the topic. Blindly pushing a false narrative either on purpose or out of ignorance only perpetuates it further. This is not the recipe for success.
He's attacking you @Jerryll Noorden because he's threatened. Just do your thing man. There's plenty for everybody even though he doesn't seem to think so.....
@James Wise completely false. I tell my CLIENTS up front I will be making a profit off of them. It even says it in my contract. Next, I don't sell the property, I always advertise Assignable contract for sell with pics of the property that is stated in the contract.
Yes there are some wholesalers that lie and try to cover up what they are doing, but those are the ones reaching out to you. Seems to me like your doing a little dishonest yourself.
@Bob Daniels my lawyer says I'm doing it legally. If you ever close I the state of Georgia you should use my closing attorney, o'Conner in vidalia Georgia
You jealous Realtors need to quit spreading Disinformation, yes there are some states where assigning contracts is illegal but it's not illegal nationwide. Maybe you should pinpoint which states you know are illegal instead of spreading lies. You'd think licensed Realtors know that different states have different laws.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
I would say to stay consistent with your marketing and make it happen. Take action wether it’s slow or fast or whatever the case may be. I would also suggest partnering up with a licensed broker. This is what I have done.
Reason for this is simple. You’re generating leads through your marketing and you don’t want those leads to go to waste if your offer is not accepted. If you have a good relationship or partnership with a broker you can refer him to the property owner and have him sign them up for a listing.
Many offers are not accepted at times and it’s best to convert those leads to a realtor that will be able to help the people out going the traditional route.
Bada bing bada Boom!
The problem with wholesaling as taught by the gurus (aside from any legal issues of brokering without a license which have been well-covered in this thread) is that they teach you that if you can't find a buyer to just bail on the deal. This is a huge disservice to the seller who thought you were going to buy the house. The legal, moral and ethical way to do this is to actually buy the property. Once you have title you have a number of options- wholesale the deal to another buyer, do a little bit of cleanup and repairs and wholetail the deal, do a full blown fix and flip, or fix up and hold the property as a rental. What is the problem with this model? You can't get do this if you don't have access to some kind of capital to finance the deal which is why what the gurus teach is so popular. At bare minimum if you want to do contract assignments and double closes (check the laws in your state), you should be prepared to actually close on the deal yourself if your buyer doesn't come through. Just my 2 cents for what it's worth.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Good thing you’re not in Michigan drilling the Title companies over here with your penal codes. According to this article everyone needs a license even if you’re selling a business or business oppertunity which in my opinion is a bunch of bologna.
Wholesaling is big business in Michigan and I don’t think it’s going anywhere anytime soon.
How’s the Ohio market been for you? I live only 40 mins from Ohio and have considered Toledo for a few rentals but I couldn’t seem to find that booming feeling over there that I do in Detroit. My commute to Toledo is the same as my commute to Detroit. I’m right in the middle. The Only upside I see is cheap car insurance and that’s about it.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Good thing you’re not in Michigan drilling the Title companies over here with your penal codes. According to this article everyone needs a license even if you’re selling a business or business oppertunity which in my opinion is a bunch of bologna.
LOL, your OPINION doesn't matter. It literally says you need a RE license to sell a business (which is the same in most states I've seen and done business in).
Why are you guys all making this so difficult? A brain dead monkey can go get his RE license. It's not difficult. It's a freaking formality. Just go get it done.
There is PLENTY of money to be made the legal and ethical way. I'd bet James & Jay have made more money in then everyone else combined in this thread.
@James Wise Man I'm sorry to say but your the type of people we should stay away from! Why cut a wholesaler out of the deal if they brought you an opportunity that you would never find! I've dealt with sellers and let me tell you when your open and honest to them and get what they want they don't care what you do the property as long as you help solve their problem. All I can say is how would you feel if an end buyer pushed you out the way and your $10k or $20k check was vanished after investing money and time to find that property?
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Good thing you’re not in Michigan drilling the Title companies over here with your penal codes. According to this article everyone needs a license even if you’re selling a business or business oppertunity which in my opinion is a bunch of bologna.
LOL, your OPINION doesn't matter. It literally says you need a RE license to sell a business (which is the same in most states I've seen and done business in).
Why are you guys all making this so difficult? A brain dead monkey can go get his RE license. It's not difficult. It's a freaking formality. Just go get it done.
There is PLENTY of money to be made the legal and ethical way. I'd bet James & Jay have made more money in then everyone else combined in this thread.
My opinion matters to me and many people I do business with and also build and sell businesses to.
Getting a real estate license is something I’ve considered but really have no reason to.
Sounds like you got a thing for James and Jay.
@James Wise I disagree
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Good thing you’re not in Michigan drilling the Title companies over here with your penal codes. According to this article everyone needs a license even if you’re selling a business or business oppertunity which in my opinion is a bunch of bologna.
LOL, your OPINION doesn't matter. It literally says you need a RE license to sell a business (which is the same in most states I've seen and done business in).
Why are you guys all making this so difficult? A brain dead monkey can go get his RE license. It's not difficult. It's a freaking formality. Just go get it done.
There is PLENTY of money to be made the legal and ethical way. I'd bet James & Jay have made more money in then everyone else combined in this thread.
My opinion matters to me and many people I do business with and also build and sell businesses to.
Getting a real estate license is something I’ve considered but really have no reason to.
Sounds like you got a thing for James and Jay.
Your opinion means nothing when it comes to what is legal or not.
I don't like taxes, but legally I still have to pay them.
Keep running an illegal brokerage. I'll keep making money with no worries of a state auditor at my door.
@James Wise Man I'm sorry to say but your the type of people we should stay away from! Why cut a wholesaler out of the deal if they brought you an opportunity that you would never find! I've dealt with sellers and let me tell you when your open and honest to them and get what they want they don't care what you do the property as long as you help solve their problem. All I can say is how would you feel if an end buyer pushed you out the way and your $10k or $20k check was vanished after investing money and time to find that property?
You are missing the point. What does a seller being happy with the service you provide have to do with the law? Your fight isn't with me.
As for a potential client trying to push me out of a commission that is very rare as we utilize contracts to protect ourselves when brokering deals. In the rare event a client has gone ahead and ignored enforceable contracts I have of course sought legal action to make sure I got my just compensation. This is yet another reason why it makes no sense for anyone to attemot to operate their business without legal compliance. Juat leaving yourself open to endless liability.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
Well 1st thing I need to tell you all is that Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.
It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.
Now that we've got the above out of the way let me explain to you that brokering real estate or connecting buyers and sellers is a pretty lucrative job if you are really good at it. Things you would need to focus on to excel at it are as follows.
In Michigan people are doing this all day. If it was illegal I don’t think reputable businesses such as title companies and attourneys wouldn’t be facilitating the transactions. I could be wrong but I’ve heard in Ohio it was affecting the traditional real estate business and all of the realtors joined an alliance and protested against the title companies from doing these transactions so the wholesaling in Ohio is dead since then.
Wouldn't it make more sense to research the law as opposed to making an assumption because you've seen other people do it? Below is information on Michigan specifically.
http://www.legislature.mi.gov/...
"(u) "Real estate broker" means an individual or business entity that, with intent to collect or receive a fee, compensation, or valuable consideration, sells or offers for sale, buys or offers to buy, provides or offers to provide market analyses of, lists or offers or attempts to list, or negotiates the purchase, sale, or exchange of real estate; that negotiates the mortgage of real estate; that negotiates for the construction of a building on real estate; that leases or offers or rents or offers for rent real estate or the improvements on the real estate for others, as a whole or partial vocation; that engages in property management as a whole or partial vocation; that sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others; or that, as owner or otherwise, engages in the sale of real estate as a principal vocation. (v) "Real estate salesperson" means an individual who for compensation or valuable consideration is employed either directly or indirectly by a licensed real estate broker to sell or offer to sell, buy or offer to buy, provide or offer to provide market analyses of, list or offer or attempt to list, or negotiate the purchase, sale, or exchange of real estate; to negotiate the mortgage of real estate; to negotiate for the construction of a building on real estate, or to lease or offer to lease, or rent or offer for rent, real estate; who is employed by a real estate broker to engage in property management; or who sells or offers for sale, buys or offers to buy, leases or offers to lease, or negotiates the purchase or sale or exchange of a business, business opportunity, or the goodwill of an existing business for others, as a whole or partial vocation. (w) "Service provision agreement" means a buyer agency agreement or listing agreement that is executed by a real estate broker and a client and establishes an agency relationship. (x) "Sponsor" means a person that represents to the public that the courses it conducts for purposes of this article fulfill the requirements of section 2504a for continuing education."
Good thing you’re not in Michigan drilling the Title companies over here with your penal codes. According to this article everyone needs a license even if you’re selling a business or business oppertunity which in my opinion is a bunch of bologna.
LOL, your OPINION doesn't matter. It literally says you need a RE license to sell a business (which is the same in most states I've seen and done business in).
Why are you guys all making this so difficult? A brain dead monkey can go get his RE license. It's not difficult. It's a freaking formality. Just go get it done.
There is PLENTY of money to be made the legal and ethical way. I'd bet James & Jay have made more money in then everyone else combined in this thread.
My opinion matters to me and many people I do business with and also build and sell businesses to.
Getting a real estate license is something I’ve considered but really have no reason to.
Sounds like you got a thing for James and Jay.
Your opinion means nothing when it comes to what is legal or not.
I don't like taxes, but legally I still have to pay them.
Keep running an illegal brokerage. I'll keep making money with no worries of a state auditor at my door.
I don’t run any illegal brokerage ?
I sell stuff all the time. I do have a couple brokers I use if needed. Haters will hate. Best of luck to you and your business and your auditors.
Who here is a full time wholesaler? If you could go back to the past and talk to the ‘you’ that was JUST starting out before having closed your first deal, what would you tell yourself knowing everything you know today? Your best tips, tricks, and advice. the must-do’s and the must-don’ts of wholesaling! All comments are welcomed!!
I'm not a full-time wholesaler but I have done some in the past & I know some people who are very successful, almost full-time wholesalers. Some with real estate licenses, some who do not. Their key to success:
@Matt Hatton
We do not need a license to wholesale houses. Don't fall for people's uneducated bs.
It's interesting to see brokers like @Jay Hinrichs and @James Wise boasting about how they are so successful and how they do everything right while talking down to others when someone is just looking for some help. No one should trust any broker that attempts to give legal advice for any state, much less the entire USA, and talks badly about an entire segment of the industry.
The two people mentioned above are commonly found trolling on threads about wholesaling with the pure intention of talking bad about it as if every wholesaler is acting illegally and dishonestly...so take what they say with that grain of salt.
@Matt Hatton to answer your question I would connect and align with individuals or teams with a track record of success wholesaling properties (if that's what you want to do) and learn the pros and cons of how they do it. Thousands of people legally wholesale every day in the USA.
Wholesaling in Ohio - done the right way is NOT illegal contrary to what others say.
Here's a video interview with representatives of Ohio Department of Commerce:
https://www.youtube.com/watch?v=9fi54S8nwUA
But, you have to do it the right way.
1. Put subtantial EMD ($1,000 or more) - not $10 or $100 as taught by the gurus
2. Market the contract not the property
3. Close on the deal as much as you can or line up the funding and close on the property if you can't find a buyer for your contract (the alternative is to walk away from a substantial EMD so the seller still benefits)
4. Disclose, disclose, disclose - tell the seller what you intend to do and tell the buyer you're assigning the contract
5. Use the right contract - not those guru contracts that may or may not be valid in your state
I bought some great deals from wholesalers. And I don't cut them out. That's just unethical.
Of course, not all wholesalers do things the right way and I don't buy the majority of my deals from them because I can find my deals directly. And if you can get licensed, in my opinion, there's no harm in doing so and it can actually benefit you.
Having a real estate license benefitted me when I re-started my real estate career. So get licensed if you can....
But please - stop spreading the LIE that wholesaling is illegal. Not illegal if you do it the right way - and that's from Ohio's Department of Commerce, the very department that gives real estate license to real estate agents!
Having said the above, that's Ohio - my home state. Ask your state's Department of Commerce to verify.
4. Disclose, disclose, disclose - tell the seller what you intend to do and tell the buyer you're assigning the contract
I have already posted that video in this thread, and while I agree with most of your points I strongly disagree with #4. Rewatch the video starting at 7:34 to 8:47 and they clearly specify that you MUST enter the contract with the intention of closing on the property, not as a way to circumvent license law. It doesn't matter if you attempt to be honest with the seller and tell them that you intend on assigning the contract by finding another buyer. If from the start your primary goal is to wholesale this contract off then you have already violated license law, and that is one of the big problems that the majority of wholesalers run into.
That is why I said it is possible to be an investor who happens to wholesale a few deals, but it is impossible to have wholesaling be your full time primary business
Been full time now since I left army in Jan. Been wholesaling the last few years I was In. Then when it came time to reenlist. I looked at my expenses versus what I was bringing in from real estate and decided to call it quits after 11 years. My wife and I have another small business and Im disabled veteran so I do have some type of fixed income coming in.I would tell myself to be consistent. Never stop marketing. There will be times where you just don't get calls so you have to budget and plan for that. Always follow up. No now doesn't mean No later. Just because a deal is signed and at title company doesn't mean it will close. Had a deal in escrow for a year and a half before it closed because of title issues. affidavits of heirships suck. I would've learn to be more creative with deals, Subject to, and owner financing. Another thing I learned is be quick. When people calling they not just calling you, they are calling other investors. So if you don't make that appointment ASAP and early in morning another investor will get the deal. I would Answer my phone faster too. Also choose a farm area in your city and market the hell out of it. Other things I learned also but that's the meat and potatoes. I cant train my competition.
@James Wise I have to disagree. Experienced wholesalers know what to say. If you don't advertise yourself as an agent. Than it is totally legal. Brokers are always upset wholesalers taking deals from their real estate agents. The need for real estate agents and brokers will be gone in not to distant future anyway because of technology and amazon. If you new don't take this kind of advice. Its fear mongering, unhelpful, and unwarranted. I don't know why this guy is in the BiggerPockets community if you do not intend to help. Wholesaling change my life. I went from a double digit salary to triple digits. Do your research and don't advertise yourself as a an agent. You will be totally fine. Ignore all advice that has broker under it with their license number.
P.S. You will notice the only ones hating on wholesalers are always brokers. Been that way since I joined BP. Scroll the forums and you will notice it too.