I am a wholesaler and RE investor in Philadelphia, PA. My company currently wholesales about 6-10 properties per month and we buy about 2 multiunits monthly. Though my rental units provide a decent return and the equity is great, the lionshare of my cash flow comes from my wholesale deals.
As of April of this year, Pennsylvania has begun to tax wholesale deals as 2 separate transaction. Transfer tax has to be paid for the first transactio between the seller and wholesaler then again between the wholesaler and the buyer. This is on a single closing, not a double close situation. Additionally, the state of Maryland has recently deemed wholesaling properties without a double closing as illegal.
Combined with the current upheavals in the real estate and mortgage markets, these factors give me quite a bit of concern. Does anyone else see similar legislation creeping up in their state. I would also be interested in specualtion about how the market may evolve.