All Forum Posts by: Ken T.

@Ken T., you have tried very hard throughout this thread to defend Wholesaling, but then you said: "The wholesaler still would have backed out of the deal if they did not find an end buyer so according to most its "morally" still wrong but 100 percent legal". Do you REALLY defend wholesalers who renege?

You also posited: "let me ask you, are they representing others if they double close"? But why ask that? Sellers couldn't care less whether there is a single or double close. But no sort of closing happened here! THAT is what is INDEFENSIBLE! Do you get it?...

@Mark Fergusoncome on man! You are a broker. You know what activities are considered brokering! If not, they are in the statutes.

We have an MLS...multiple listing service. Why don't "wholesalers" have a WMLS--wholesalers multiple listing service? BECAUSE representing others in real estate transactions, for a fee, is a licensed activity.

I feel like I am taking a test:) a state licensing exam!

 He entered into a contract under good faith that he was a cash buyer intending to close on my property himself.  He never actually intended to close.  He paraded strangers through my property, including a phony inspector.  In our first conversation, I had told him I had several other appointments with other interested parties coming to see my house, the following week.  I canceled those appts based on having an offer, from someone who represented themselves as a cash buyer intent on closing on my property.  And while I understand there is an inspection period for him to find my property unacceptable, he never inspected my property.  He told me he couldn't find a buyer, so he couldn't close, once I confronted him about wholesaling my property.  My understanding is that you enter into a contract in good faith, meaning you intend to do what you are stating, which is close.  Sometimes things happen and the contract falls through, and that is not fraudulent.  However, misrepresenting yourself and having no intention of following the contract is definitely a violation of a good faith agreement. 

I spoke with another wholesaler, and he was perfectly honest about his intentions, and what he would need/want from me.  While l can definitely understand the debate of legality, since he would be marketing my property and brokering a sale unlicensed, his honesty about what his intentions were speaks volumes. 

You state it is "not an illegal activity". It is an illegal activity if they fine you or issue a cease and desist. It IS an illegal activity if the actions are in violation of state law. Your or my opinion may not matter...but the state boards do! I checked on one "wholesaler" this morning.  Their name not only appears on the state website for unlicensed complaints, there is a finding of "legally sufficient".  There are other names that appear with "legally insufficient" as the finding. Apparently, on  one "wholesaler" i looked up this morning, there is prima facie  evidence that their activity IS illegal. If something is illegal, I don't know how anyone except those with disregard for the laws can defend the action.

 Brokering without a license is illegal in every state. And even if they are investigated and let off with a warning to be sure they behave, they will now be on the real estate commissions radar. Nothing disinfects like sunlight.

BTW, I have a house in CT. Owned in an LLC. Undoubtedly shows up on many of the lists wholesalers buy. And I know how to report brokering without a license in Connecticut as well as anywhere else.

If one finds that his business model requires intentionally misleading people, perhaps one ought to find a new business model.

That is why complaints are important, and why I have decided to file a formal complaint against any and every wholesaler who contacts me.  They will get a C&D, and then they will never get a license and pollute the legitimate industry.