All Forum Posts by: Chris Williams

Not too hard for someone who reads and understand plain English, which is what it takes to understand the law. Or, if one can't read and comprehend it, pay $300 to an attorney and let them explain it to you. As long as wholesaling is legal it shouldn't be hard to do it while complying with the law. If they ban it, then court challenges are likely and how it will settle is to be seen. 

No one new is going scale a wholesaling business into 10 markets. The best wholesalers are local home buyers, not virtual wholesalers. You can only be good at the job if you know the market like the back of your hand. You have to be able to talk with the sellers about who else you helped down the block.

Also, wholesaling is 25x more time consuming than most other real estate endeavors, so it's more than a 9 to 5 if you get good at it. Also, where the money comes from is majorly important since 99 percent of wholesalers don't have their own money so start every conversation off with a lie.

A lot of wholesalers are trying to pick apart the description of "wholesaling" and making assumptions on the "marketing" aspect of the new bill. There's a line that says the assignment of contract bit is not illegal, but that's meant as a contractual tool. Not as a business practice.

Essentially what this boils down to is a ban on the practice of "wholesaling" as a business. They're trying to funnel investors into taking the title or employing an agent. I know a lot of folks think agents are silly, but the reason they're doing this to protect the public. In their view, to be a licensed agent, you must learn the laws, pass tests, comply with a supervising broker and pass a background test. You don't have to do any of those things to wholesale a property.

You can still actively market the sale of any property you own yourself without an agent. This legislation is meant to stop unlicensed individuals from being compensated by any means associated with buying and selling real estate for others. In their view, that's no different than acting as a real estate salesperson without licensure.

You can assign contracts all you want, but you can't market them to prospective buyers or receive any compensation from doing so. And double closings will not work because you're still typically marketing the property for sale prior to taking ownership.

Just line up bridge debt and take title to the property. We've been doing this for 4 years in preparation for this. I've also been warning wholesalers about this for about 2 years. The REC released a bulletin warning this was eventual last summer.

Investment Info:

Single-family residence wholesale investment.

Purchase price: $28,000
Sale price: $41,500

Partner Driven, in collaboration with our partner Matt Rzodkiewicz, successfully completed a whole-tailing deal on Pennsylvania Ave, Rochester, PA. We secured the property for $28,000 and sold it for $41,500. This quick and profitable transaction highlighted our efficient whole-tailing strategy and ability to maximize returns with minimal investment. The deal exemplifies Partner Driven's commitment to delivering outstanding results for our partners and showcases the strength of our collaborative

What made you interested in investing in this type of deal?

We were interested in the Pennsylvania Ave deal in Rochester, PA, due to several key factors: Low Purchase Price: The property was secured for just $28,000, presenting a low-risk investment. Quick Turnaround: Whole-tailing allows for rapid transactions, minimizing holding costs. Profit Potential: Selling for $41,500 offered a clear profit margin. Partnership: Collaborating with Matt Rzodkiewicz provided valuable local insights and expertise.

How did you find this deal and how did you negotiate it?

We found the Pennsylvania Ave deal through our partner, Matt Rzodkiewicz, who identified the opportunity and brought it directly to us from the seller. Leveraging Matt's local market knowledge, we secured the property for $28,000. Our combined expertise and strategic approach enabled us to negotiate favorable terms, ensuring a successful whole-tailing transaction for Partner Driven.

How did you finance this deal?

We financed the Pennsylvania Ave deal using Partner Driven's capital, covering the $28,000 purchase price. This approach allowed us to proceed swiftly and efficiently, ensuring the project stayed on track and was completed without delays. Our financial backing highlighted our commitment to providing the necessary resources for successful real estate investments.

How did you add value to the deal?

We added value to the Pennsylvania Ave deal by implementing our efficient whole-tailing strategy. First, we secured the property at a favorable price of $28,000. We then focused on marketing the property effectively to attract buyers quickly. By leveraging our network and expertise, we were able to sell the property for $41,500. This approach required minimal additional investment, maximizing profit and demonstrating Partner Driven's ability to enhance property value through strategic actions.

What was the outcome?

The outcome of the Pennsylvania Ave deal in Rochester, PA, was highly successful. We purchased the property for $28,000 and sold it for $41,500 using our efficient whole-tailing and double closing process. This approach allowed us to take ownership and quickly resell the property, providing greater control and flexibility. The quick and profitable transaction highlighted our effective strategy and ability to maximize returns with minimal investment.

Lessons learned? Challenges?

Lessons Learned: We learned the value of sourcing deals directly from sellers, as Matt Rzodkiewicz did, which leads to favorable purchase prices. The efficiency of the double closing process was evident, providing greater control and flexibility in whole-tailing. Additionally, quick and effective marketing proved crucial in attracting buyers swiftly.
Challenges: We faced challenges in ensuring correct pricing and marketing for a quick sale and managing the double closing process.

my thought is states are really cracking down on this  Look what SC did.. Not sure i would put much time and energy into starting wholesaling bizz.. tough way to make a buck and being outlawed left and right across the country. 

@Tom Gimer

Seeing conflicting posts on this - not a wholesaler but curious about laws as we invest in most states.

Seeing both sides saying its still legal and others where it is not

Also with most wholesalers, while technically legal most states do not allow you to advertise property you do not own without a license and that is where most do not follow the law