Oklahoma Proposes Legislation Against Wholesaling!

15 Replies

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

@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.

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. 

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?  

 

@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. 

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.

 

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....

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?