ok, so I’ve not yet begun wholesaling, I just bought my signs and they should be here soon so I intend on walking into this slowly at first to get the hang of it.
Anyhow, I contacted a title company of which I know the owner of, I figured he would be a great person to have do all my closings. I asked him for a couple names of some of his biggest investor/cash buyers and explained to him that I would be wholesaling. He replied with some things I’d rather not hear. I’m not going to get discouraged over it but he presented me with some “FYI” information and I’d like to know the workarounds here in maryland that wholesalers are using.
here is a cut and paste of his response. Tell me what you think…
“In this State what you are trying to do is risky because it is a Democratic
State. What I mean is that Senator Barbara Mikulski has defined a “flip” as
someone who immediately sells a property for more than they buy it for. If
you only obtain a fee but do not take title you run the risk of taking fees
for the sale of real estate without being a licensed broker. I know it is
the American way to make money but this State sucks. I used to know
investors when times were good but I don’t really see that many anymore. No
one is buying because financing is so hard.” :shocked
So? I went to a boot camp in Philadelphia not too long ago and the fellows that were running it said that in philly, there are some tricky things to get around but they ended up succeeding by use of the term “consultation fee” as what they receive when they do a wholesale deal.
I’m from Maryland, and here’s my “FYI”. Find another Title Company. Obviously the person you talked to doesn’t know jack about wholesaling. Wholesaling has nothing to do with illegal flipping. Any investor friendly title company would know that. Barbara Mikulski is a little troll U.S Senator not the governor nor a member of the Maryland General Assembly. Also wholesaling has nothing in common with brokering real estate. A realtor obtains a listing agreement from the seller to find a buyer on the seller’s behalf. A wholesaler is selling his or her “interest” in the property through a sales contract. Since wholesalers aren’t listing the property for the seller, the wholesaler isn’t acting in the capacity of a Realtor. More and more investors are using private finance as a way to not have to go to the banks for financing. There are still buyers who know where to get the money for the deals, you just have to know where to look.