All Forum Posts by: Account Closed

It's a wishful thinking. As of this moment there is no such a thing as "fiduciary duty to seller" if you are out there making an offer to property owner as a wholesaler. There are protections under MD Loss Mitigation Laws already afforded to those who are 60 days past due on their loans, and to those who are not capable of comprehending and consenting to sign a contract,  but if you go to an ADULT who owns a home and who is not in pre-foreclosure in MD and has his mental faculties INTACT, then you can make an offer (which should be for the wholesale value minus a fee you will be adding to your assignment agreement), and it's perfectly legal thing to do. It doesn't matter how many brokers and REA feel pained and whine and slander guys who don't have a license yet able to make money off their sweat. Come October 1, 2024 and wholesalers will have to disclose to sellers what exactly they are doing, but that should not be a big deal. However, if 2023 MD HB0301 [ https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/HB0301?ys=2023RS ] , which failed miserably that same year, gets reintroduced and passes into law in 2025 then I hope to see lots of lawsuits challenging MD on it. It doesn't ban wholesaling per se. It bans anyone , including home owners and flippers, even buyers and renters and individuals engaging in buying, selling, offering to buy or sell any real estate in excess of one per year, unless they have REA license. It's such a brazen , communist and fascist overreach by state that it must surely be taken to court if it becomes a law next year. Then Plaintiffs shall ask for permanent injunction until after the merits of the case are decided by courts. I won't be surprised if it passes and becomes a law, after all US is steadily and progressively plunging itself into a lawless, Orwellian, Third World Country status lately. But surely those who goad the country and states to an abyss should be challenged in courts of law, the last resort of Citizenry to bring grievances and ask for righting the wrong. 

I wrote earlier that if wholesaling works out for me in MD (I will have at least 1 year to try it and see where it goes) , I will get a REA license. It takes 60 hours class, an exam and sponsorship from local REA. I just don't see how adding bureaucracy , burden of state and board regulations and adding costs to each transaction will benefit the business. After all this is not retail business, it's mean to find and supply cheap properties to investors many of whom rely on HML to finance the project. Someone will pay for this and it will be sellers who will get less for their property and retail buyers who will pay more for after repair house. And all this could be handled with existing laws in the books.

 If a wholesaler (or anyone) can pressure an investor to buy anything then that "investor" is an idiot who should never be in the business of investing in RE. Before COVID I was looking for a rehab property and almost got sold one by a licensed and registered in state database Real Estate Agent. She was my (buyer's) agent, not sellers'. She knew I was in it to make profit and was going to suffer severe loss if the property was a bad deal. She pushed it on me nevertheless. And I, being a newbie and an idiot, was willing to buy it. I had down payment and closing costs in cash ready. I was saved by HML who denied the loan, that was a free and valuable lesson. If the deal is bad don't buy it. Learn your trade before investing your money in RE.

Quote from @Chris Williams:

Quote from @Nate Marshall:

Quote from @Will Gaston:

@Alan Asriants there is a ton of nuance to these situations, but I am personally done with wholesalers who require me to tell an owner that I am their "business partner."

Transparency is best for all those acting in good faith.

The wholesaling gurus are amongst the worst. EMD funding gurus are catching up. Hamas gurus are like in 3rd now.

 Yep. Real estate costs money. I think a lot of people want to run a business without any cash and are suprised that they have to have some capital to run a business over the long haul. It is not as easy as buy my course = be a millionaire lol. 

 In wholesaling you need capital for effective marketing. If you don't  you will have to drive for dollars and just go from one neighborhood to another, to market in person. It's tedious thing to do and can burn you up quickly, but some people say they were able to get deals that way. Even that is not free: your time is has opportunity cost and gas is not free. Realistically, though, at bare minimum you should have enough money to subscribe to pop-streams, run your facebook ads, make cold calls, have CRM software, some money to invest into automations and etc. But the amount of the money required in wholesaling is nowhere near what it takes to  purchase a home for cash, close on it and either rehab or resell to a highest bidder. There are also less headaches and risks. You don't have deal with contractors who may ghost you and bring to screeching halt your renovation project or loose your sleep over ever changing market conditions. If you can 100% finance the whole transaction and scale it relying on your capital then good for you, but a lot of rehabbers I know use hard money. They have skin in the game and put up large chunk of their own money, but what you do when your interest payments add up and crews you hire take their sweet time to finish the project? You will be lucky to break even. No such concerns exist in wholesaling. Once you assign the contract and get your fee you are done. As long as you can repeat the cycle you should continue getting cash flow. And if you fail miserably your losses will be in the amount of money you spend in marketing, and opportunity cost for the time dedicated to it. All bearable risks compared to putting $100K+ of your cash into any deal (at bare minimum) and then loosing it all due to slight mistake or unforeseeable events that you can't control. It's not about easy path to become a billionaire over night. Anyone who smokes a dream pipe will be hugely disappointed. It's about alternatives and minimal monetary investment required to make things work. Of course, if I had couple of million dollars in cash sitting in a bank account and doing nothing for me, wholesaling wouldn't be something I would consider. But it's an error to judge others' circumstances based on your own and preposterous to demand that others do things in a way that is most convenient for you. Each individual has to make a choice based on their own individual circumstances. For a lot of people wholesaling is a bad business to get involved in. Someone with $10+ mil cash may find it highly unattractive, time and energy consuming, with less reward that other things one could do with their capital. But for others it's a good stepping stone into RE. Rate of success in this business should be about the same as in any other ventures, where a lot depends on what you do, how you do it and how efficient you are at doing it. None of those things make wholesaling or wholesalers evil , malicious or doomed to fail per se. 

 You can, but it's called ad hominem and slander. I say it's OK to slander me because I see no harm in it at this moment.

This being said, slanders and ad hominems are the only refuges of those who can't argue the case based on its' merits. 

 Good for you, I am doing the same. But it's not federal law, it's MD Bill which didn't pass in 2023. Could be reintroduced in future. Not a law yet. 

 Yes, you can own the company and it can do business in the US. You don't need a visa for that. Lots of foreign companies operate in the US, with shareholders not even living in the US. But you can't be employed by your business. You will have to have someone else do it for you. You could, for instance, buy a rental property and employ property management firm to take care of it, but you can't work for your company in any capacity and get paid for it. Of course you can collect the income generated by your business. Plenty of immigration attorneys are out there that can assist. 

I don't know this attorney and don't endorse him, just found this article on the subject: https://www.chugh.com/news/h-1b-visas-and-entrepreneurship-can-h-1b-and-h-4-visa-holders-start-a-business?/h-1b-visas-and-entrepreneurship-can-h-1b-and-h-4-visa-holders-start-a-business#:~:text=An%20H%2D1B%20holder%20can,the%20company%20in%20any%20capacity. 

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. 

After carefully reading and researching the matter I am happy to say that wholesaling is not anywhere near dying. Knee-jerk attorneys who say they won't close in some states and jubilant REA/Brokers may disagree, but the attorneys who understand plain English advise that there is no ban on wholesaling coming. What is more likely to occur is transparency (wholesaler disclosing that he is a wholesaler, not marketing to public, making clear that he assigns an interest in the contract and not selling a property he owns and etc.). None of those things are likely to kill wholesaling as a business practice, despite passionate desire of brokers and some REA to the contrary.