Thread: Anyone wholesale real estate?

Originally Posted by CityConnection

But he has to disclose that he is a registered real estate agent to the seller or any other party. Also, I don't know about your state but I'm sure there are rules about this in your Real Estate Brokers Act. Just food for thought.

He doesn't have a license, yet, so doesn't need to disclose anything. Even if he has a license, the disclosure is simply a one-line entry on the purchase and sale agreement (often just a check box on many standard forms). There is nothing scary about disclosing that the purchaser or members of the purchaser are licensed agents or brokers acting as principals. Also, there is no state in which one must have a license to act as a principal. Thus, he can form an LLC and be the member empowered to conduct purchase and sale transactions, without a license of any kind.

Originally Posted by DialM

He doesn't have a license, yet, so doesn't need to disclose anything. Even if he has a license, the disclosure is simply a one-line entry on the purchase and sale agreement (often just a check box on many standard forms). There is nothing scary about disclosing that the purchaser or members of the purchaser are licensed agents or brokers acting as principals. Also, there is no state in which one must have a license to act as a principal. Thus, he can form an LLC and be the member empowered to conduct purchase and sale transactions, without a license of any kind.

I don't know about the states, but I know in Ontario we need to disclose information if we know any "substantial" information. We have a separate form for disclosures in Ontario.

Originally Posted by CityConnection

I don't know about the states, but I know in Ontario we need to disclose information if we know any "substantial" information. We have a separate form for disclosures in Ontario.

I'm still not getting your point. Who cares about disclosing their license? I'd be willing to wager that one doesn't have to have a license to buy real estate in Canada, either. I'd go further out on a limb and guess that a partner in a Canadian partnership doesn't need a license to buy real estate on behalf of the partnership. But I could be wrong about that. I know there is no LLC equivalent in Canada, and I am not familiar with the Canadian limited partnership laws, but I would be very surprised if a GP had to get a real estate license just to conduct transactions for a limited partnership.

The guy I'm working with is a broker, and as far as disclosing the fact that I'm (gonna be) a licensed agent, that shouldn't be an issue either.
What I'll be doing with this short sale thing is being done right now, but he wants to expand and take on more leads. I'm really excited about this, and still working away at the wholesaling thing as well...

What I'm trying to work on now is determining ARV's (After Repaired Value) of properties, I wouldn't be having any problems with it except that most of the properties that people are contacting me about are odd ball properties... Lots of land (2.5 acres vs ~.5 that most of the houses in this town have), unique locations (golf course), etc., so coming up with accurate comps is a little more tricky than, say, a 3/2 ranch on .4 acres in an older neighborhood or whatever. Just makes the learning process more interesting!

Its a tough market around here.. alot investors who would purchase wholesale from a guy like you are holding on to their money. You picked a tough time to get started.
I would definately get my licence so you can also work the retail end of it to suppliment your income.

We / I try and find those properties, sell them to investors and then when they are finished rehabbing or are ready to list, we try and make them a deal to have the listing.
Double dip. commission when aquiring the property and when selling. Also if you wholesaled the property it to them, you get the money on the paper flip.

Funny I stumbled across this thread. I am actually in a similar situation to you SpeedinPenguin. Haven't done any mailing campaigns yet, but I have put out 50 bandit signs. Response has been better than I thought, but the problem is that most people that call me have no equity in the house and are usually upside down. I outsourced those to a guy doing shortsales but its tough to try to do shortsales on low end, cheap homes, and not really worth the time and headache.

I am actually going to go out tomorrow to do what has been mentioned in this thread already, and that is to drive the streets and look for abandoned/boarded up, and ugly homes. and like you mentioned, I have plenty of buyers calling me looking for deals with cash in hand. Selling a good/great deal won't be a problem.

PM me if you want to chat about it some more.