Hi, I am new at wholesaling here in Idaho and trying to get a contract written up to be able to do assignments. My attorney is saying I will most likely need a real estate or brokers license to do so. Is there any truth to this?
You only need a ‘legal interest’ in the property, which includes either a purchase agreement or an option agreement, or any other agreement that gives you control over the property for a given time.
You’re assigning your legal interest in the property. You’re not representing a seller with a listing agreement.
That said, lots of wholesalers will actually get a purchase agreement, simply for the purpose of finding a buyer for the seller …without ever taking title. This would be called an ‘assignment’ transaction.
I think our resident wholesaler Randoskie does wholesaling this way. I could be wrong.
Thank you javipa! Now will this same strategy work nationwide? Are there any places you or anyone knows that it won’t? And is one purchase agreement form better than another? I will do my homework but can you tell me where to get a good one or point me in the right direction. Thank you!
No, it was not necessary.
But if you are presenting your self as a seller to some body in the deal… then at that time you need to show a license.
Else, it was not required exactly.
Now that ought to confuse…if you cannot dazzle them with brilliance, then baffle them with BS.
Hate to be cynical once again but I would be cautious about the advice of an attorney when investing in real estate…one man’s humble opinion is they appear to cause conflict which then creates new legal fees.
Perhaps one might ask, show me the law which prevents me from contracting on a piece of property, and then prevents me from assigning my interests to a third party. If the law does not exist, you have your answer!
By the way, I’ve read the Constitution and it clearly allows each of us an unlimited right to contract with one another…check it out!
Hope this helps.