How do you start wholesaling in Illinois with the new laws?

Question

Looking for knowledgeable investors working the Illinois market to learn wholesale strategies with the new laws in place.

Will Barnard · Answer

Get your license, that is a very good start for a number of reasons. The other way to wholesale legally in any state is simply to make sure you have the money (doesn’t have to be yours) to close on the deal, then once you own it, market it for resale. Another way around is to go work direct for a rehabber as an acquisitions person, get their criteria, go hunt for the product and when it is found, turn it over to them. So long as you work for the actual buyer, you are not brokering without a license.

Account Closed · Answer

In my experience, this is a very competitive profession and sometimes hard to navigate, especially with these new rules and regulations and the uncertainty with how the law is going to play out on a practical level.

The State of Illinois revised the Licensing Act which has changed the definition of "Broker." The new definition essentially says that any person or entity engaged in wholesaling real estate cannot wholesale more than one deal in a 12 month period. If you intend to wholesale more than the allotted 1 transaction per a year, you will want to pursue a Broker's license.

Zoran Stanoev · Answer

@Nathan Graham

If you’re planning on doing more than 1 deal per 12 months, get licensed. If someone offers you a “guaranteed” work around, I’d be very skeptical. The new law is broad and without a single case having been filed, its difficult to know how the new law will be applied.

Branden Van Matre · Answer

Maybe have a business name or "doing business as"? Then its not necessarily a person. There is probably a clause that states the company or owner/board member needs a broker license. Or actually close and then actually sell it? RE is pretty cheap in most of IL compared to other areas. Maybe we could elected officials.  It would be great if violated the constitution and we could sue the state or deem it unlawful? Maybe it stemmed from the buying and selling senate seats!!! Too soon!

Christopher Petrillo · Answer

I would say either get your license or just chose another state for now. Virtual wholesaling isn't bad.

Barry Pekin · Answer

@Nathan Graham,

I keep hearing predictions all over the place about how this will be overturned, upheld, enforced, not enforced, adopted by other states, etc.  Personally, if I were in IL, I would pursue my license.  In fact, I may do that eventually anyway.  As my Jewish grandmother said about chicken soup, "It can't hurt!"

George Skidis · Answer

With the new law you should choose another state.

How do you start wholesaling in Illinois with the new laws?

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