All Forum Posts by: Frank Eimiller
Frank Eimiller has started 9 posts and replied 257 times.
Post: Re-Introduction - Oshkosh, WI
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
welcome again to BP!! I'll keep your name in mind going forward Kevin
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Originally posted by @Crystal Smith:
Originally posted by @Frank Eimiller:
How can someone wholesale without a real estate license?
- Put the property you want to sell under a legal binding contract.
- Assign the contract to another buyer for a fee or
- Close on the property. Unless there's a deed restriction you can immediately sell it (called a double close) or hold it for a while then sell it w/o making any improvements
Put the term wholesaling aside.
Interesting, thank you for the post! I thought wholesaling was exactly those things-- maybe i was confused
In your state, that entire process is legal w/out a real estate license?
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Originally posted by @Account Closed:
Originally posted by @Frank Eimiller:
Originally posted by @Hattie Dizmond:
@Account Closed hit the nail on the head. The key is "equitable interest"...as in, you can't market a property you don't have "equitable interest" in without a license.
Disclaimer...I'm not a lawyer. This isn't legal advice. Check the laws in your state.
Unless it's already disallowed by law in your state, as a wholesaler, you gain equitable interest by having an effective (signed by both buyer and seller) sales contract with EMD attached. Then, as a wholesaler, you ARE NOT selling the property, you are selling your contract. Period.
There are a lot of people on this site who are likely to jump in and start the wholesale bashing. There are good wholesalers and bad wholesalers, just like good and bad licensed agents. Sell what you own. You own the contract. You paid for the right to the contract. It's a lot like an NFL team trading (selling) a draft pick. If I hold the #1 overall pick and don't believe there is a fit for my team at #1. I can sell that draft pick for your lower #1, plus your #2, #3 and your #1 next year. I didn't sell the player. I don't own a player. I sold what I own...the pick.
Thanks for chiming in, that's a really good analogy!
I don't think bashing this situation like you said is completely fair-- I was at the Y and someone was telling me about a property they just having sitting, nobody is marketing to this market, who knows how many people live out of state, etc with houses just sitting.
Without going to far into it or getting a license (i don't intend to) maybe I should just work with my broker and try to work out finder fees? Essentially i'll just be doing marketing for him? Just tossing around ideas! Hopefully nobody gets offended by how "green" I am to the subject haha.
Your broker will not pay you a finder's fee because you are not licensed. In fact, he can't by law (at least in Ohio).
You are better off working this deal with an experienced wholesaler if you want to get paid.
Awesome. Thanks Rod
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Originally posted by @David Dachtera:
Originally posted by @Frank Eimiller:
Absolutely. Thanks for your input!
I'm more than anything looking how to possibly structure my "Wholesaling," Essentially I just want to get paid for finding deals, What do you think that would look like?
That's what is known as "being a bird-dog": you find a deal for someone else. If they are successful at offering and closing on it, they can bury your "bird dog" fee in certain expenses paid from buyer funds at closing on the HUD-1 (or its successor).
David J Dachtera
"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict
As a bird dog could I write or track down owners and just inquire information about their property then refer them to my broker friends? I assume from what others are saying I can't outright tell them I'm "going to pay cash and close quickly?"
Thanks for joining the discussion!
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Originally posted by @Hattie Dizmond:
@Account Closed hit the nail on the head. The key is "equitable interest"...as in, you can't market a property you don't have "equitable interest" in without a license.
Disclaimer...I'm not a lawyer. This isn't legal advice. Check the laws in your state.
Unless it's already disallowed by law in your state, as a wholesaler, you gain equitable interest by having an effective (signed by both buyer and seller) sales contract with EMD attached. Then, as a wholesaler, you ARE NOT selling the property, you are selling your contract. Period.
There are a lot of people on this site who are likely to jump in and start the wholesale bashing. There are good wholesalers and bad wholesalers, just like good and bad licensed agents. Sell what you own. You own the contract. You paid for the right to the contract. It's a lot like an NFL team trading (selling) a draft pick. If I hold the #1 overall pick and don't believe there is a fit for my team at #1. I can sell that draft pick for your lower #1, plus your #2, #3 and your #1 next year. I didn't sell the player. I don't own a player. I sold what I own...the pick.
Thanks for chiming in, that's a really good analogy!
I don't think bashing this situation like you said is completely fair-- I was at the Y and someone was telling me about a property they just having sitting, nobody is marketing to this market, who knows how many people live out of state, etc with houses just sitting.
Without going to far into it or getting a license (i don't intend to) maybe I should just work with my broker and try to work out finder fees? Essentially i'll just be doing marketing for him? Just tossing around ideas! Hopefully nobody gets offended by how "green" I am to the subject haha.
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Absolutely. Thanks for your input!
I'm more than anything looking how to possibly structure my "Wholesaling," Essentially I just want to get paid for finding deals, What do you think that would look like?
Post: "Wholesaling" without a real estate license?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
How can someone wholesale without a real estate license? Although i'm not too familiar with the entire method of "wholesaling" anyways, I know there are opportunities for it in my market. (I live in a city of 43k people and I've NEVER seen a "We buy houses" card, letter, or sign.) Without getting too far into it, can I team up with a broker, bring him deals, and essentially get a finders fee and let him take care of it?
I'm just throwing around the idea as I actually have time to drive for dollars and I have time to market and write hand written notes and keeping a few deals a year to flip would be awesome as well-- without doing all of the research now, is looking more into the idea a good idea?
Post: Architect keeps giving us the run around what to due?
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
That price is definitely goofy-- threaten to file a complaint and reach out to the person who referred him to you
Post: My first house flip
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
My name isn't Brad. How is that for a fun fact
Post: My FIRST wholesale!!!!
- Rental Property Investor
- Fond Du Lac, WI
- Posts 261
- Votes 78
Congratulations! This is awesome!