Full time wholesalers
Flipper/Rehabber · Jacksonville, FL · Member since 2019 · 30 posts · 53 votes
Full time wholesalers
Most Popular Reply
Wholesaler · Mansfield, TX · Member since 2015 · 216 posts · 146 votes
7yI 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.
216 Replies
- Flipper/Rehabber · Winston Salem, NC · Member since 2018 · 33 posts · 24 votes7y
@James Wise
- Flipper/Rehabber · Winston Salem, NC · Member since 2018 · 33 posts · 24 votes7y
@James Wise
James I have to disagree with you on this.
Wholesaling is very real and a lot are doing it. I have to think you are so pro agent that you can’t see this.
There is an agent in my area making over 1 mil a year. Right here in my very city and yes I’ve meet him and know him. You may know him also. Max Maxwell. I’m studying everything about him right now to learn this.
You don’t have to have a license. It’s called assigning a contract and investors have been doing it long before there were ever brokers. Mater of fact it was in our North Carolina offer to purchase not to many years ago and still may be but I haven’t looked at N.C. offer to purchase in a few years. It could be done but had to be disclosed to all parties. That rule still applies but it is perfectly fine as far as I know.
As far as agents making money. Your an agent and you know the rule-20% of agents sell 80% of market. So 80% go hungry. The turnover rate is more than I change my underwear. And the fees and people in your pocket is crazy. How many times you hear “you made so much money off of me you should feel guilty” and in the back of your mind you think if I broke even I’ll be lucky as many houses as you looked at? And don’t tell me I’m wrong. I was an agent for many years. And I wasn’t a poor dumb one who couldn’t figure it out. At my peak I sold 36 million. I got out because after all expenses and cost of business my wife said all that money and this is how much of it we get. And I ran lean to. I worked 100 hrs a week because I was to cheap to hire an assistant. I finally did and worked my money worth out of her.
Never the less, brokerage is loosing grip. There are more than 1 way to skin this cat and wholesaling is growing and becoming one of them. I know agents don’t like us but it’s the new market and wholesalers are a good answer to people with house problems.
- Developer · Cincinnati, OH · Member since 2018 · 1k+ posts · 3k+ votes7y
Originally posted by @Bob Daniels:
Originally posted by @Michael Ealy:
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
No - you're mistaken.
You can wholesale a deal and actually close on it (using their cash or borrowed cash from a transactional lender) and then sell it immediately afterwards. That's called a double close. I've been in lot of those transactions as the end buyer and I've seen wholesalers did it.
So, you can wholesale deals as a full time primary business and do so legally - but you need to do it correctly.
- Flipper/Rehabber · Winston Salem, NC · Member since 2018 · 33 posts · 24 votes7y
@Matt Hatton
Matt you don’t need a license to wholesale. You need a license to work at a broker firm or to claim you are a broker. There is no law saying you can’t walk in someone’s house and offer to purchase it and have them sign a contract an attorney drew up for you and then assign that contract to an investor. The only law in that you might come close to breaking is telling sellers you may flip to an investor in which if your using an attorneys contract he should have somewhere in that they initial or sign they understand this and are ok with it. Mater of fact you may not want your license. Because then if something does happen and you go to court, guess who courts look at as who should of been the protector of everyone’s rights? Even if you were in right. They will say you should of drove this ship. Your better to not have license and walk in court on level playing field as other party I think. Some dispute that. A lot of good arguments on both sides of that one.
So listen to his words. To broker a deal you have to have a license. He’s right. To purchase a house and assign that contract to someone else you do not. They are way 2 different things.
- Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes7y
@Michael Ealy Great information!
And where is the moderation in this thread? You have people calling others scabs and others advocating for cutting people out of deals while at the same time boasting about being ethical. This is as degenerated as I've ever seen a thread on here.
I guess the powers that be of Bigger Pockets are unethical, why even have a wholesaling sub-forum if it's so unethical?
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Alex Khan:
Originally posted by @James Wise:
Originally posted by @Matt Hatton:
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.
- An in depth knowledge of the market.
- Marketing skills.
- Sales skills.
- Negotiation skills.
- Accurately estimate rehab costs.
- Understand how to much time it would cost to run a renovation on the properties you are presenting.
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.
Alex title companies don't care if the transactions violate license law.. they only care about respa … And same with closing attorneys.. they just facilitate closes they don't defend against license issues.. its for sure state specific though no question there.. but if the act of bringing two parties together for compensation did not require a license then why is ANY ONE licensed why have a real estate license industry at all.. Be like China no licenses for anything.. ???
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Logan Causey:
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.
LAws are the same in every state its really about enforcement.. here is one state that enforce's it.
Oregon
Hello Jay,
Thank you for getting back to me. The advertising copy you attached to your email came out perfectly and will be very helpful. Thanks!
The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction. Addressing the problems is like trying to put out small individual fires in a forest that is burning. The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.
Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.
Best regards,
Frances Hlawatsch | Financial Investigator
State of Oregon - Real Estate Agency
I go tired of the is it legal is it not.. sent in a copy of a flyer I got via e mail for someone assigning a home they did not own.. state opened an investigation this person is now licensed.. but in a lot of markets were much of this acitivty happens in lower value assest I just think the state does not care .. and does not enforce the laws.. just like some states wont really enforce ICE or drug laws.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Austin Smither Langley:
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.
I never boasted how successful I am or am not. .actually I lost about 10 million in the 08 to 2011 and I write about it.. real estate crashed I had 40 million of it LOL.. wrong place wrong time.. Also I have not sold real estate at the consumer level in over 20 years the reason I keep my CA license is to simply make referrals fee's very occasionally and to Broker HML loans.. the subject was just the legality of doing it . its not legal the way those that advertise properties they don't own do it.. simple as that.. whether the states want to follow up that's up to them.. that's my only point.. Also I think like many things real estate related its a hot button because of the allure of easy money quickly.. can it happen sure some will do it.. can those that have licenses make big bucks sure but not all by any means depends on where your living and the price points of the real estate..
I have no turf to protect just commenting on the laws of the land that's all.. and I never boast or at least I don't think I have about how much money I make or don't make.. other than my unfortunate set back during the GFC and being to heavy into real estate.. I freely admit it..
But now today is a new day and things are looking up.. !! at least for now..
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Damarius Gilbert:
@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.
Did you read any of the revised code content I posted? At no point does it say it's cool so long as you don't represent yourself as an agent. I do not understand your argument here. I posted the actual law and you just don't accept that it exists? I am lost my man. - Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Alex Khan:
Originally posted by @James Wise:
Originally posted by @Matt Hatton:
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.
- An in depth knowledge of the market.
- Marketing skills.
- Sales skills.
- Negotiation skills.
- Accurately estimate rehab costs.
- Understand how to much time it would cost to run a renovation on the properties you are presenting.
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.
Alex title companies don't care if the transactions violate license law.. they only care about respa … And same with closing attorneys.. they just facilitate closes they don't defend against license issues.. its for sure state specific though no question there.. but if the act of bringing two parties together for compensation did not require a license then why is ANY ONE licensed why have a real estate license industry at all.. Be like China no licenses for anything.. ???
Another thing I would like to note as it pertains to the education and experience level of those speaking from positions of authority. How many of them out there own a real estate brokerage or in this example a title company? I am an owner of both. Both are highly regulated, but by totally different bodies. I do not make the rules, I am simply explaining what they are and a lot of you are too damn bone headed for your own good lol. - Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
@Michael Ealy Great information!
And where is the moderation in this thread? You have people calling others scabs and others advocating for cutting people out of deals while at the same time boasting about being ethical. This is as degenerated as I've ever seen a thread on here.
I guess the powers that be of Bigger Pockets are unethical, why even have a wholesaling sub-forum if it's so unethical?
Interesting take from a Realtor in Arizona. Below has been taken directly from Arizona's Department of Real Estate. What is your reasoning for thinking that this doesn't apply to you?
Referral or Finder’s Fees:
- Referral or finder’s fees for residential sales or leasing may not be paid to an unlicensed person.
- Only a licensee may receive compensation resulting from a real estate transaction and such compensation should be paid at the direction of the licensee’s broker.
Unlicensed Activity (Inactive / Expired Licenses):
- If a licensee conducts real estate activity after the expiration or inactivation of his/her license, the licensee has conducted unlicensed real estate activity.
- Immediately upon determining unlicensed activity has been conducted, the licensee should notify his/her broker and contact the Department’s Licensing Staff.
- Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes7y
I'm not sure what you are asking? I am a licensed person. Everyone I deal with is licensed. I rarely deal with unrepresented sellers.
If an unlicensed person does buy a property and wants to sell it to me, that's perfectly legal.
If I buy a property and then want to turn around and sell it to someone else, that's perfectly legal.
I agree that tying up a property with no intention to close and then looking for an end buyer is unethical and is a no-no.
I think that video that Michael posted does a pretty good job of summing everything up to my understanding.
- Specialist · El Paso, TX · Member since 2016 · 105 posts · 84 votes7y
@James Wise Sure Brother, Like I said before. I rarely read advice from brokers or read any reply that starts off criticizing wholesaling. I took trec classes to hear it from the horses mouth. If you don't present yourself as an AGENT, treat sellers like customers,and don't market the property to the public new wholesalers will be fine. Only people that have problems with it are brokers. Brokers who opinions or interpretations ( Because I know they taught you at real estate school not to practice law) don't write my pay checks or any other wholesalers pay check. Just their Agents. Thanks for proving my point.I'm leaving it at that. Happy Hunting
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
I'm not sure what you are asking? I am a licensed person. Everyone I deal with is licensed. I rarely deal with unrepresented sellers.
If an unlicensed person does buy a property and wants to sell it to me, that's perfectly legal.
If I buy a property and then want to turn around and sell it to someone else, that's perfectly legal.
I agree that tying up a property with no intention to close and then looking for an end buyer is unethical and is a no-no.
I think that video that Michael posted does a pretty good job of summing everything up to my understanding.
You're either for or against cutting out unlicensed individuals trying to earn a fee and or commission during a sale. Which one is it? Based on your commentary it sounds like you're adamantly against it.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Damarius Gilbert:
@James Wise Sure Brother, Like I said before. I rarely read advice from brokers or read any reply that starts off criticizing wholesaling. I took trec classes to hear it from the horses mouth. If you don't present yourself as an AGENT, treat sellers like customers,and don't market the property to the public new wholesalers will be fine. Only people that have problems with it are brokers. Brokers who opinions or interpretations ( Because I know they taught you at real estate school not to practice law) don't write my pay checks or any other wholesalers pay check. Just their Agents. Thanks for proving my point.I'm leaving it at that. Happy Hunting
Well their ya go. That's the answer. I posted actual state law and you simply ignore it because it's not what you want to hear and was posted by someone whom you don't want to hear it from. I guess you feel like Ignorance is bliss for you.
- Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes7y
I am against an unlicensed (Or licensed) person getting a property under contract with no ability to close or intent to close.
If an unlicensed person owns a property however, and wants to sell it to me, then sure, nothing wrong with that.
If an LLC enters contract with a buyer with every intent and ability to buy and close that property, and then that person decides that they want to assign the rights of their contract to me, and I am a willing and able buyer, then there is nothing wrong with that as long as they are marketing the contract and not the property. If I bail for whatever reason, then that LLC should still close that transaction, or forfeit their earnest money, which should be substantial (At least 1% of the sales price IMO).
In that instance, they are not earning a commission. They are assigning their rights to the contract that they fully intended to close on. It's not the same as brokering real estate.
At least here in AZ that's fairly common.
- Specialist · El Paso, TX · Member since 2016 · 105 posts · 84 votes7y
@James Wise I guess calling a person of color ignorant makes you feel good huh
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
I am against an unlicensed (Or licensed) person getting a property under contract with no ability to close or intent to close.
If an unlicensed person owns a property however, and wants to sell it to me, then sure, nothing wrong with that.
If an LLC enters contract with a buyer with every intent and ability to buy and close that property, and then that person decides that they want to assign the rights of their contract to me, and I am a willing and able buyer, then there is nothing wrong with that as long as they are marketing the contract and not the property. If I bail for whatever reason, then that LLC should still close that transaction, or forfeit their earnest money, which should be substantial (At least 1% of the sales price IMO).
In that instance, they are not earning a commission. They are assigning their rights to the contract that they fully intended to close on. It's not the same as brokering real estate.
At least here in AZ that's fairly common.
In regards to the scenario where an unlicensed owner of an LLC assigns a deal to you, a licensee.....Your state didn't say commission. Your state said compensation. Is this LLC assigning their contract to you for an amount higher than what they originally placed it under contract for and keeping the spread? That sure sounds like compensation.
- Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes7y
@James Wise I guess in that instance if I were an unlicensed individual looking to do that I would probably seek legal counsel from a real estate attorney here locally
Well, I wouldn't, I would just get my license, but one might
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Damarius Gilbert:
@James Wise I guess calling a person of color ignorant makes you feel good huh
Stick to the topic at hand Damarius. If you've got a fact based point for your opinion present it. Otherwise just accept that you were wrong.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
@James Wise I guess in that instance if I were an unlicensed individual looking to do that I would probably seek legal counsel from a real estate attorney here locally
Well, I wouldn't, I would just get my license, but one might
So what happened to all the venom earlier? Were you unaware of your state's policies when you originally chimed in?
- Specialist · El Paso, TX · Member since 2016 · 105 posts · 84 votes7y
@James Wise You have already been reported. Pretty Sure you didn't see where I posted I went to TREC Classes. "ignorance" I know the people who use those type of words when speaking about people of color. A little dog whistle. Have a good night and God Bless You.
- Realtor · Tempe, AZ · Member since 2017 · 541 posts · 442 votes7y
I don't understand how it seems like every post like this seems to degenerate to name calling ("scabs" whatever that is, doesn't sound nice) and that the thread is typically derailed. If wholesaling, or buying and then immediately reselling properties, was not ethical, why would Bigger Pockets have an entire sub-forum dedicated to it? Maybe your beef should be with them to remove it?
Also, I didn't like the idea that if someone had a property under contract that you were interested in that you would just try to cut them out and go directly to the seller. That's shady in my opinion. Especially if that person has a contract that they are capable of closing and plan on closing.
I like @Michael Ealy's taken on it personally, that closely mirrors how I feel about it. The grey area stuff I would advice people to just speak with a real estate attorney.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Damarius Gilbert:
@James Wise You have already been reported. Pretty Sure you didn't see where I posted I went to TREC Classes. "ignorance" I know the people who use those type of words when speaking about people of color. A little dog whistle. Have a good night and God Bless You.
The information disproving your theory is on the TREC website. I have also pasted it below. 1101.002. DEFINITIONS. In this chapter: (1) "Broker" (A) means a person who, in exchange for a commission or other valuable consideration or with the expectation of receiving a commission or other valuable consideration, performs for another person one of the following acts: (i) sells, exchanges, purchases, or leases real estate; (ii) offers to sell, exchange, purchase, or lease real estate; (iii) negotiates or attempts to negotiate the listing, sale, exchange, purchase, or lease of real estate; (iv) lists or offers, attempts, or agrees to list real estate for sale, lease, or exchange; (v) auctions or offers, attempts, or agrees to auction real estate; (vi) deals in options on real estate, including a lease to purchase or buying, selling, or offering to buy or sell options on real estate; (vii) aids or offers or attempts to aid in locating or obtaining real estate for purchase or lease; (viii) procures or assists in procuring a prospect to effect the sale, exchange, or lease of real estate; (ix) procures or assists in procuring property to effect the sale, exchange, or lease of real estate; (x) controls the acceptance or deposit of rent from a resident of a single-family residential real property unit; (xi) provides a written analysis, opinion, or conclusion relating to the estimated price of real property if the analysis, opinion, or conclusion: (a) is not referred to as an appraisal; (b) is provided in the ordinary course of the person's business; (c) is related to the actual or potential management, acquisition, disposition, or encumbrance of an interest in real property; (xii) advises or offers advice to an owner of real estate concerning the negotiation or completion of a short sale; (B) includes a person who: (i) is employed by or for an owner of real estate to sell any portion of the real estate; (ii) engages in the business of charging an advance fee or contracting to collect a fee under a contract that requires the person primarily to promote the sale of real estate by: (a) listing the real estate in a publication primarily used for listing real estate; (b) referring information about the real estate to brokers.
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes7y
Originally posted by @Dustin P.:
I don't understand how it seems like every post like this seems to degenerate to name calling ("scabs" whatever that is, doesn't sound nice) and that the thread is typically derailed. If wholesaling, or buying and then immediately reselling properties, was not ethical, why would Bigger Pockets have an entire sub-forum dedicated to it? Maybe your beef should be with them to remove it?
Also, I didn't like the idea that if someone had a property under contract that you were interested in that you would just try to cut them out and go directly to the seller. That's shady in my opinion. Especially if that person has a contract that they are capable of closing and plan on closing.
I like @Michael Ealy's taken on it personally, that closely mirrors how I feel about it. The grey area stuff I would advice people to just speak with a real estate attorney.
Contacting me and trying to assign the contract to me is pretty clear proof that they do not intend to close on the contract.
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