Hello every body, can anyone tell me is it illegal to wholesale in real estate and do you need a real estate license ? thank you.
Hi,
Is it perfectly legal to wholesale property in all 50 states. What is the premise of American Capitalism? Buy low sell high!
We have been providing services for profit since Plymouth Rock and Jamestown!
Under state law you control the property by contract and you have the legal right to assign or use transactional funding or all cash to control a real property (Real Estate).
Much like you buy a car and your paper (Loan) is sold (Assigned) to a new service provider who bought your loan and collects your debt! Or like a debt collector buys your contract from your original creditor and collects it or attempts to collect it themselves and by purchase has the legal right to do so!
You do not need a real estate license unless you want a career as a realtor?
GR
If it were, REIClub.com wouldn’t have a discussion forum about it so people can share ideas and learn in order to do the business. 
No, you don’t need a real estate license. Some wholesalers will go through the trouble mostly to get MLS access.
The reason why you do not need a real estate license to wholesale is because you are not selling “real estate.” You are selling your rights or interest in a contract. You are not representing a buyer or a seller but rather you are the middleman who is selling the right to purchase that real estate. That is the difference.
I have lost several deals bcuz Realtors told my sellers that what I was doing was Illegal.
I even had a bird dog tell me that he was going thru Real Estate School and wat I was doing was illegal. I explained to him that when an ordinary person goes thru RE school it somehow makes them ignorant and arrogant and they think they know every thing there is to know about Real Estate and even real estate law.
I explained the concept of equitable interest and the fact that a contract and earnest deposit gives me the legal right to buy and sell any property, It was too late, his mind had already been taken over by schooled ignorance, just like most realtors this guy was closed minded.
I told him to go ahead and get his license and work for 3% and fight over the bones. But when he had wasted years and was ready to make some real money to contact me.
Am I the only one that has a difficult time with these know it alls. I have lost thousands of dollars and experienced tons of aggravation with these AH’s. I had one realtor ask me if I had just finished an investor home study course. I said no, did u just graduate from realtor school. He says I’v seen you guys come and go. I told him I’ve seen u guys come and go , mostly go. I then asked him if he knew the difference between a realtor and a catfish? He didnt reply so I happily told him. Well, one is a bottom feeding scum sucker and the other is a fish. He wasnt laughing, but I was.
I just left the office of a real estate broker with over 20 years as an agent and she said she had never heard of Wholesaling! One of her agents have approached me on behalf of a buyer who wanted to buy one of the properties I had under contract. Since there was no provision to pay a commission in the first contract I told her I would pay her a flat fee of $600 - pretty generous on a $42k property. She then tells me it all still has to go through her broker, yada, yada and it just seems it’s making it more difficult than it’s worth when I’ve other seasoned investors who know the process and are ready to close. I guess I felt sorry for the buyer who is a local small business owner really wanting to get some rental properties.
I can’t believe how clueless some agents are about wholesaling. We had a former agent come to one of our local REI club events and she said she learned more about real estate in one day with us than her years as an agent! Way too many agents are taught only one way to do transactions and for less than 3% commission once their broker gets their cut. I’ve also lost lots of deal b/c agents work as blockers instead of advocates to get a property sold b/c they want the highest commission possible. Just saw a property go to foreclosure that was for sale with an agent but she was just too busy to really try to sell the house. They had a ton of equity in the house too!
Yes this business is totally legal. People are doing this all over the country day in and day out.
You don’t need a license in wholesaling real estate. The investors that do attain their licenses mainly do so for access to the MLS.
Another YES, here. Just be honest and ethical in your dealings.