Legal ramifications of Wholesaling

[Solomon Oh]

Dear members of Bigger Pockets in Washington state-

Before jumping into wholesaling, I wanted to make sure all of my ducks were lined up in a row. I spoke to a lawyer about my contracts and the legality of this enterprise known as "wholesaling". He was concerned with the practice and thought I was "equity" skimming and essentially planning to defraud consumers out of their money.

I came across the Washington State Attorney General's page http://atg.wa.gov/hb2791prjune08.aspx#.UyfgGfldWJE

and it does seem that wholesaling could be questionable.

Is there ANY legal information/experience someone could provide me with that could help me calm my nerves and get started? I am really excited to start, but do not want to face any legal issues... such as end up in jail or pay damages up to 100k.

Thanks,

Sol

[Bryan L.]

I'm not going to tell you the wholesaling is illegal, but the easiest way to avoid any questions it to actually buy the house. With money. Either cash, borrowed, or partnered (or maybe even with seller-financing). Get the deed. And then sell it to someone else.