So im confused here. Ive looked into it, researched it, talked to many investors about it, but i still dont see how wholesaling is any different from acting as a realtor. The less creative investors have been outright against it, the others have really been wary of it, advising i treat it like im marketing for investors or something.
Is wholesaling really just acting like a realtor? Can someone describe to me how they go about avoiding these similarities and convincing them your just a investor?
Basically i want a description of wholesaling that better clarifies this problem.
Hey…
Wholesaling isnt acting as a real estate agent… Cus youre taking title… Are you talking about assigning? if so then you can do limited amounts of them… But dont ever assign a deal… follow your mentors advice…
And do your homework and stop writing on the boards until youre done…
Michael
JJ,
YOu’re a principal in the transaction which gives you the right to assign your contract to someone else.
When you actually take title to the property as with a double or simultaneous closing (even if it’s for 5 minutes) as the owner you have every right to sell the property.
There are 1 day loans out there you can use for these closings, but assignments are probably the most risk way to do wholesaling.
Please, get a hold of a good wholesaling manual and get the basics down.
Don’t be discouraged. I know you’re almost there.
Dennis
JJ
It’s easy to see why your confused. Actually many methods are just an inch away from needing a license in many states and I expect some states in the future will get stricter with “disguised brokering”.
But basically in most states you are exempt currently because you never get into an "agency " relationship, and theoretically you can’t be an agent for yourself.
To JJ:
I haven’t even done a deal yet so my credibility is lacking but I asked a similar question to the one you have. I had a title guy tell me that what I am doing will require a broker’s license. At any rate, a poster on here put it in such a way that I totally understood, so I will attempt to quote him.
"You don’t need a broker’s license because you are not brokering a deal. You’re simply putting a property under contract and at closing, you are (and here is the key phrase) selling your interest in the contract
to someone else.
Makes sense. but, unfortunately after reading responses to your original post, now I’m confused! “assigning”? Here’s my understanding of the wholesale process as it was described in the wholesale class I went to in philly.
- market for properties
- decide which properties are deals that are able to be done (win/win/win situations)
- put the house under contract with the seller
- advertise the property to your buyers
- put the contract under contract with your buyer (assignment contract)
- settlement table
- stop at the bank on your way home and deposit your paycheck
If you don’t have a listing agreement with the seller to represent him or her in selling their house, then you aren’t acting as a Realtor. Agents represent the sellers or buyer. By you having a purchase or option contract, you are representing yourself instead.