Hello all :biggrin
I’m one of the many newbies and I want to apologize in advance for my rookie questions. Once I become successful(I WILL be in the 5% category, not the 95%) I will look forward to passing on knowledge gained to other investors.
BTW, I live in Texas!
:helpA few questions:
- Has a legitimate wholesaler(no mortgage fraud, etc.) ever been charged by a State for acting as a broker/agent?
2)What would you recommend to begin wholesaling(until I build some cash reserves):
a)setup an entity(LLC, S corp, LP, etc.)
b)doing business in my name
c) doing business under an Assumed Name of Doing Business As
d) is it possible to get a business name or start a business without having an entity(dumb,sorry) :banghead
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Is it illegal to advertise “referral” fees or “commissions” on the back of business cards if I’m unlicensed.
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Are “referral” fees or “commission” fees given to Birddogs by an unlicensed wholesaler illegal?
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Are there any Texas(DFW especially) wholesalers on these forums, beginner or pro, that are currently assigning contracts and making a living off of it? Any additional help you can provide would be extremely helpful.
Thank You all, with patience and determination I will absolutely succeed in this business. It’s always been my dream to be my own boss and I will make that dream a reality.
Thank You :beer
ASD Homes
Wow, 7 days go by and not one response. I’m not sure if that’s good or bad, what do ya’ll think. HA/HA
You may want to post this under the “Bird Dogs, Wholesaling” forum.
I will say that if you don’t own the property and are paid a commission to sell or buy that property on someone else’s behalf, it is illegal. If you contract the purchase of the property and have the writen right to assign that purchase contract (and do so for a fee) it is perfectly legit.
It is also perfectly legal to pay someone else for doing “Market Research”, “Consulting”, or “Business Management Services”, etc related to real estate without a R.E. sales license. But I would ask the experts in the Bird Dog forum for specifics.
As far as Asset Protection, I’m a little surprised nobody has responded. I’m not an expert on this, but I wouldn’t do anything these days w/o forming a business entity like an LLC or S-corp or whatever is appropriate for your business. I do house flipping/rehabs and operate under an LLC. You can have an online company file an LLC for you for about $300 to $600 including an EIN but I would consult with a CPA or AP person in this forum first. Technically, you don’t have to form a separate entity but it protects you from the nasties (if you run it right).
I would also make sure your purchase contracts for wholesaling are properly worded for your state laws (added amendments to the “standard” Texas RE purchase agreement) and make sure your earnst money is fully protected in that contract. Of course, you probably already know this and have taken a course or read up on it.
Keep in mind that a “legitiment wholesaler” does not act as a “broker/agent.” He contracts the right to purchase a property and then sells the purchase rights in accordance with the “right to assign” clause in the contract. A good friend of mine does this - there is nothing wrong with it so long as you follow the rules.