All Forum Posts by: Zoran Stanoev

If you do that, you'll also likely need to be licensed. A "person" can be a corporation so if the corporation is set up to engage in the business of wholesaling, all members will need to be licensed.  Make sure you talk to your attorney.  

@John Thedford

In your opinion, is all wholesaling bad/are all wholesalers bad? What if there is no dishonesty, full disclosure, and the assignment of a contract is marketed?

I don't know if you've read David Greene's BRRRR book, but I'd definitely recommend it. One of the big takeaways from it is that you start have a legit plan for saving money. Yes, there are definitely ways to get in real estate without capital, but don't ignore that aspect of it. Good luck.

@Jay Hinrichs sure thing.  here goes...

protecting the consumer (sellers) from "de facto brokerages" was the main reason for the new law. licensees have to make certain disclosures that unlicensed wholesalers don't and the Realtors Assoc does not like this. they made a comment along the lines of, "we want a licensee in every transaction." They also don't like the fact that a wholesaler holds themselves out to be a buyer, but has no intention of actually buying the property or the funds to actually close. 

They pointed out that the change was not made as a new section that prohibits or bans wholesaling.  rather, the new law was included as part of the definition of what constitutes activities that fall under the purview of a broker. 

I've heard numerous ideas or strategies for how to circumvent or not fall within the new law. Some are very creative, but personally, i'd be very suspect to work with any brokerage or person stating with confidence that they have found a work around. in my opinion, unless you're licensed, you can't be sure. I think there's a lot of broad language in the act and an argument can be made that all of the new ideas and strategies violate the new law. 

The people on the call made the law and although they can and did kinda guess how it will be enforced, until the issue is before a judge, you can't be sure how it'll be applied. 

@John Thedford I'm not sure how your comment helps the person that posted this question or how it's even applicable given that you're in florida and not illinois. 

@John Meza the Chicagoland Investor Empowerment Series meetup had a meeting about this last night. Joe and Dan actually had a conversation (that was recorded) with the sponsoring senator and other people involved in the passing of the new law.  It was very beneficial and learned a lot. However, it is difficult to know for sure how the law will be interpreted by the courts and how it will be enforced.  I'd definitely recommend setting up a meeting with your attorney.  Good luck.

sorry, but i don't have a title company to refer.  i don't buy at auctions. 

Illinois uses title companies and not attorneys for closings so you'll need to build a relationship with a tittle company. make sure it's one you trust - if they've got a better relationship with someone else, they'll pass along their great finds to them.  good luck

That's way too much.  You're going to scare most sellers if you put that much paperwork in front of them. If you're buying a property (i.e. putting it under contract) a Purchase and Sale Agreement is all that you need.  Anything else can be handled during the due diligence period.  Once it's under contract, it's "locked up" so then you can move forward with the other stuff if you need it.  For example, if you're paying cash, the reals for the mortgage info is not relevant. And from my experience, the credibility packer would be overkill and unnecessary.  I can't imagine that there would be anything in there that would sway them. Sometimes, looking less professional and more like an every day person is your best bet.  Don't over think it. Good luck 

It'll definitely be interesting to see how the law is applied and enforced. If there's one thing you can be certain of, if there's a chance the state can make some money, they'll be pursuing its enforcement.  

@Thomas Moran

I can understand why you’d be a little unsettled but do your due diligence and see what happens. If there is an issue the wholesaler is hiding, you’ll find it. Obviously, if the wholesaler tries to limit your ability to conduct proper due diligence, that’s a red flag. Good luck.