Oklahoma Proposes Legislation Against Wholesaling!

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Oklahoma Proposes Legislation Against Wholesaling!

Jeff Filali

Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes

Oklahoma Proposes Legislation Against Wholesaling!

This passed the sub-committee unanimously by 7-0 vote, and now would move on to be voted on.

Oklahoma HB 3104

This act shall be known and may be cited as the "Predatory Real Estate Wholesaler Prohibition Act".

Read the bill: CLICK HERE

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Dean Carter

Rental Property Investor · Fayetteville, NC · Member since 2016 · 67 posts · 37 votes

No one can force a wholesale deal on a seller. Their choice. This seems drastic.

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Stephen J DavisBusiness Member
Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
6y
Wow. Bogus news.
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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Stephen J Davis How is it bogus? It’s from the State Legislation website.
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Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
6y
@Jeff Filali
Licensed real estate brokers have been clambering for this for years. Guess the number of incompetent wanna be wholesalers has increased to the point where even relatively free market supporting state legislatures are considering acting against free market interests.
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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
Originally posted by @Don Konipol:
@Jeff Filali
Licensed real estate brokers have been clambering for this for years. Guess the number of incompetent wanna be wholesalers has increased to the point where even relatively free market supporting state legislatures are considering acting against free market interests.

Yes, it’s getting out of control throughout the nation. Way too many gurus teaching newbies unethical & shady tactics. I get contacted multiple times a day by wholesalers with deals priced way too high because they offer whatever it takes to get it under contract with zero intent or ability to ever close, if they can’t “broker a deal”, they just walk away leaving homeowners in even worse position. Then you have all the daisy-chainers who don’t even have the property under contract. It’s makes it harder for the rest of us legitimate investors to do deals. There are some well intended, and ethical wholesalers out there, but the bad ones are starting to far outweigh the good ones.

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Dean Carter
Rental Property Investor · Fayetteville, NC · Member since 2016 · 67 posts · 37 votes
6y
No one can force a wholesale deal on a seller. Their choice. This seems drastic.
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Dean Carter
Rental Property Investor · Fayetteville, NC · Member since 2016 · 67 posts · 37 votes
6y
Originally posted by @Jeff Filali:
Originally posted by @Don Konipol:
@Jeff Filali
Licensed real estate brokers have been clambering for this for years. Guess the number of incompetent wanna be wholesalers has increased to the point where even relatively free market supporting state legislatures are considering acting against free market interests.

Yes, it’s getting out of control throughout the nation. Way too many gurus teaching newbies unethical & shady tactics. I get contacted multiple times a day by wholesalers with deals priced way too high because they offer whatever it takes to get it under contract with zero intent or ability to ever close, if they can’t “broker a deal”, they just walk away leaving homeowners in even worse position. Then you have all the daisy-chainers who don’t even have the property under contract. It’s makes it harder for the rest of us legitimate investors to do deals. There are some well intended, and ethical wholesalers out there, but the bad ones are starting to far outweigh the good ones.

Ignorant newbie question. Just curious how a deal falling thru after a 7-10 day IP puts a homeowner in a worse position?

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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Dean Carter The issue is there’s tons of unethical & uneducated wholesalers in the market doing full 30 day or longer periods not to do due their diligence, but just to market the property for potential end buyers, then they just walk away the last minute before closing because they can’t find a buyer & don’t have 2 cents to their names to ever close, or get funding. They outbid all the legitimate wholesalers & investors offering too much and could never find a buyer at their prices. I receive 100’s of emails a month from wholesalers with overpriced deals. Especially the “virtual” wholesalers who have never been to the property, and base their numbers off Zillow’s inflated estimates.

I recently purchased a property from a homeowner who had went through multiple bad experiences. One where wholesalers kept extending closing dates for over 90 days and still just walked away. The homeowners kept extending because the wholesalers convinced them they would be able to close in a few more weeks. They almost lost the home over it. All because the wholesalers offered too much and couldn’t find a buyer.
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Dean Carter
Rental Property Investor · Fayetteville, NC · Member since 2016 · 67 posts · 37 votes
6y
Originally posted by @Jeff Filali:
@Dean Carter The issue is there’s tons of unethical & uneducated wholesalers in the market doing full 30 day or longer periods not to do due their diligence, but just to market the property for potential end buyers, then they just walk away the last minute before closing because they can’t find a buyer & don’t have 2 cents to their names to ever close, or get funding. They outbid all the legitimate wholesalers & investors offering too much and could never find a buyer at their prices. I receive 100’s of emails a month from wholesalers with overpriced deals. Especially the “virtual” wholesalers who have never been to the property, and base their numbers off Zillow’s inflated estimates.

I recently purchased a property from a homeowner who had went through multiple bad experiences. One where wholesalers kept extending closing dates for over 90 days and still just walked away. The homeowners kept extending because the wholesalers convinced them they would be able to close in a few more weeks. They almost lost the home over it. All because the wholesalers offered too much and couldn’t find a buyer.

Jeff,
Yeah that's bs for a wholesaler to do that. Not the way I do plan to do things. Thanks for the reply.

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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
I wrote more on this topic on my BP Blog:
Oklahoma’s proposed legislation HB3104 the "Predatory Real Estate Wholesaler Prohibition Act".
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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
Looks to be moving forward for vote. This is a good change.

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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
Update: HB3104 passed the House vote today 86-3. Now it will go to the Senate.

#HB3104 #OklahomaWholesaleLaw
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Jeff Filali
OP
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y

UPDATE: HB3104 today Engrossed, Signed, & sent to Senate

#HB3104 #OklahomaWholesaleLaw
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Dean Carter
Rental Property Investor · Fayetteville, NC · Member since 2016 · 67 posts · 37 votes
6y
Hope this isn't a sign of things to come across the country.
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Orlando Robinson
Member since 2020 · 1 post · 0 votes
6y
Hello all! I really hate that this law is attempting to be passed. The problem is the National Association or Realtors are pushing the issue as they are "losing" money to wholesalers when they normally don't go after the same types of properties. However, there is a loop hole.... Transactional funding.... With Tranactional funding you are actually buying the property, it is being transferred into your name then you can sell it to your investor as a purchase vs. a wholesale deal. There is no law that says you cannot sell your own property, whether you've owned it for years or until you walk into the other closing room to sell to your investor....
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Gabriel Johnson
Investor · Charleston, SC · Member since 2018 · 32 posts · 34 votes
6y
The legislation doesn’t make it sound like licensed agents would have any more of a right to market equitable interest than the average joe unlicensed investor. So the assignment of contracts, whether by agent not not, would be made illegal?
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