All Forum Posts by: Brian Gibbons
Brian Gibbons has started 114 posts and replied 4413 times.
Post: Getting Busted in Ohio for Wholesaling and Praticing RE without a License
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Post: Are wholesalers unlicensed brokers?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Maybe instead of a picture of a house and trees and the walkway you could put up a scanned signed document :)
Post: Starting From The Ground Up
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Bruce Thomas:
Is there any way to start in multi family investing when you don't have the money to invest? I am not looking for something for nothing but creative ways around this objection. I ask because it would take about 3 lifetimes to build up a significant amount of money to play with. Any suggestions would be welcomed.
I love Oklahoma City single-family houses where you can cheaply do lease options and assign them and I would get your license and make 3%
[post edited]
Post: Are wholesalers unlicensed brokers?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Account Closed:
The different types of contracts have been mentioned here, and thru out posts and replies on BP. I haven't seen any that address the Executory Contract which is applicable in REI, IMO.
See
Post: Are wholesalers unlicensed brokers?
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Originally posted by @Joel Owens:
The reality is people with no money see wholesaling as a way to make a quick buck.
Heck even getting licensed you have to go through a school and pass a test and then take a state test to pass. Then you have to find a broker and pay dues. So it does cost money and skin in the game to get going.
Do not count on your local real estate commission giving you a legal opinion on anything. They avoid it like the plague! lol
If it is not defined 100% their answer from everything I have seen is NO. The commissions will error on the side of caution every time to CYA themselves.
Let's play out a hypothetical situation. Wholesaler goes out and does a bunch of deals. Doesn't know if it is legal and confused. Makes 60k in fees before the commission deems them to be in violation. They slap them with a 500 dollar or 1,000 fine and say do not do it again. Was it worth it to the wholesaler?? Many would say YES. Just like illegal oil, chemical dumping in the oceans. Until laws were passed where the penalty exceeded the potential savings or money made then people and companies kept doing it.
Some people making money say it is much easier to ask for forgiveness then ask for permission to do something.
From what I know for certain, OH, FL and CA require you to have a license to market for sale any property you do not have legal title to, including assigning lease option agreements.
Post: Getting Busted in Ohio for Wholesaling and Praticing RE without a License
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Michael Q has some unusual contracting going on, he is a lic broker in Calif and has a wonderful reputation, asking questions "piecemeal" without knowing all the particulars, I really can't comment on 1 clause.
Being a principal and being on title, you can lease, sell, mortgage, assign, etc.
@Account Closed might have some insight.
Post: Shortsale help!
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Post: Getting Busted in Ohio for Wholesaling and Praticing RE without a License
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
Therein is the big question of this thread.....
Ohio and Florida and California, if you ask the DRE - Department of Real Estate -
"In My Humble Opinion" they would say
"Don't market anything until you have legal title and are a principal owner."
Please prove me wrong.
We are not selling cars for a friend here. We are selling real estate.
You can get CA title quickly on a sub2, AITD All Inclusive Trust Deed or a ILC Installment Land Contract
Post: Getting Busted in Ohio for Wholesaling and Praticing RE without a License
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
I must be really stupid and ignorant but I just do not get
"the sales and purchase agreement converts you from prospective purchaser to seller."
I hope Michael can explain that.
I know you can act "agent for", and
you can act as a principal, as in buyer-purchaser, seller-owner, optionor, optionee, lessor, lessee.
Are you getting on title by purchasing on sub2 first, then selling as a principal?
Post: ?What would you do???
- Investor
- Sherman Oaks, CA
- Posts 6,088
- Votes 3,921
You have to be careful with lease options, charging above market rent.
Here are some tips to prevent the lease option from being a disguised installment sale.
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1. The rent should be at or near fair rental value. Breece Veneer & Panel Co., 232 F .2d 319. Get a written opinion of the rental value from a qualified real estate professional.
2. Keep rent credits toward the option price to a minimum. Generally, 20% or less is considered reasonable.
3. The option price should be at or near fair market value. Get a written opinion of the market value from a qualified real estate professional. Breece Veneer & Panel Co., Ibid.
4. Try not to tie-in substantial lessee improvements with the option exercise.
5. Do not pass legal (or equitable) title to the optionee\lessee\buyer.
6. Demonstrate that you intend to do a lease-option and that you believe the rent and option price to be reasonable. See Benton, 197 F.2d, 745; Lester, 32 TC, 711. Use arm's length lease-option documents along with the counsel of qualified professionals.