Hello my name is Heidi Green and I’m new around here, and it’s great to be here! My biggest fear is doing wholesaling in Ohio!
The commissions for real estate is pretty touch on those without a broker or real estate license!
How can I successfully do wholesaling without being sued by the seller or buyer, and keep Ohio Real Estate Commissioner off my back and not fining me?
Thanks for your time!
Simple answer:
Always have a purchase agreement signed with the seller, before you assign the purchase agreement to a buyer.
A purchase agreement is effectively a short term option agreement, which gives you ‘equitable interest in the property.’ The PA gives you control of the property for as long as the contract stipulates.
The PA gives you the ability to legally market the house for resale and/or pre-lease it, in advance of a closing. All that without acting as an agent.
In other words, agency agreements do not give the agent equitable interest. Without equitable interest, ONLY agents can market properties they don’t own (yet or ever). However, a purchase agreement gives anyone the right to market and resell, or offer to sell a given property.
You won’t be in any trouble as long as you have a signed purchase agreement with the seller. The PA is your license to market, assign, pre-lease, and/or flip a property you don’t own.
The legality of wholesaling real estate is often questioned. If you ask a realtor, it’s definitely illegal.
With a realtor license they have total knowledge of real estate law and they are experts, NOT.
I sometimes get bird dog applicants that tell me they are in the process of getting their license. I immediately know they are not good candidates for wholesaling.
If your scared to even get started, you may not have the mindset to succeed. It takes a thick skin and a thick head and focused determination. Or in my case, simple desperation.
Good luck
Rando
Here’s the thing, yes you might get turned in and fined for something totally legal. The real estate commission once sought to fine and out law For Sale By Owner because owners don’t have a license. Let that sink in and if you can’t be hard headed enough to fight them don’t get in the game. Take a look on bigger pockets and it will show you what randoskie says. People take a 60h course and think they have a legal degree. This means they will also turn you in when you can close in 10 days and Results can’t even promise 30 days. I need money for my family so I’m willing to push forward but do you need it that bad?
No. “Turned in?” Perhaps. “Fined?” No.
Fined for what? This doesn’t happen.
My distrust in government of any sort leads me to believe they will try to take my money. I will take your word for it because I respect your opinion. Either way it would not stop me.