Investor · Philadelphia, PA · Member since 2010 · 56 posts · 22 votes
Hi there,
I have wholesaled properties for the past 5+ years without a broker's license. Title companies that we've closed with and my RE attorney have never questioned whether we have a license or whether what we are doing is legal. However, I find it hard to explain to those who don't understand that a license is not necessary (i.e., anyone not familiar with the business). My answer has always been that I am not representing either the buyer or the seller in the transaction since I am only selling my contract to purchase the property.
So, for any PA investors and I guess investors in general, how do you answer this question: "Do you have a broker's license and if you don't, isn't what you're doing illegal?"
"I am not acting as an agent or representing anyone. I am a principle in the transaction. Because I have a contract on the property that gives me an equitable and controlling interest, which also means that I can market it for sale and convey my interest to another party if I so choose."
It's a mouthful, and most people won't totally understand it. Some never will, because they are set on the idea that it's something illegal. That's fine. Just explain what you're doing and carry on. As long as you are fully disclosing you're in the clear.