Wholesaling in Illinois in 2020?

Question

As a new real estate investor, I am trying to find my niche. My end game is SFH / MFH income properties, but I was thinking about ways to build up to those options.

I was considering wholesaling, but I have been reading that it’s all but illegal, without being a licensed real estate agent, in Illinois in 2020. You can do only one (1) wholesale deal per year, which seems challenging to build out a solid foundation.

Can anyone provide clarity?

Also if you are wholesaling in Illinois, would you advise this path for a new investor? Or do you invest mostly out of state?

Thanks for clarity,

Jelani

Zoran Stanoev · Answer

If your goal is income producing properties, I’d recommend starting there.  Wholesaling is difficult to do. It’s basically finding deals, which is the hardest part of investing.  There are professional, full-time wholesalers that you’re going to be competing against and it’s going to be a lot harder than you think.  Save that time and energy and start working on income producing properties if that’s your goal.

Barry Pekin · Answer

@Jelani Tate,

Another option is to just become licensed.  It has its benefits, and when you're acting as an investor instead of an agent, you basically need to disclose that fact.

Of course, do your research.  The devil's in the details!

Lydia R. · Answer

@Jelani Tate Hi Jelani! Although Im not in IL I do think I have a solution for you. Why not use transactional funding or hard/private money to close on your wholesale deals and then sell them to investors. There is no law about selling a property that you own. I still think wholesaling is a viable option, I think that wholesalers just have to adjust their thinking/approach in order to continue being successful. Those who are able to change and adapt to new circumstances survive and those who are unable will go out if business. Hope this helps! Feel free to reach out if you have other questions!