Are the legalities is Wholesaling more strict in Ohio?

Question

I’m a new investor from Columbus, Ohio and I’ve seen several places where people have brought in question the legalities of Wholesaling here in Ohio.

From my understanding it pertains mainly to assignment of contract.

The bandit signs are everywhere here, so I know deals are being done, but I just want to make sure that I’m doing things the right way based off of my own city.

Anyone have any insight on this?

Jay Hinrichs · Answer

hey there was another guy that just posted about OHIO wholesale and there was a U tube by Jeff Watson.. ( not sure who he is but sounds like some sort of guru type)

I would watch that. but here is what he said.

1. to wholesale legally you have to have intent and capacity to close on contracts you tie up.. other wise you have no contract. this precludes most no money just getting started folks.

2. you can only sell the contract. which we hear a bunch.. issue is i have yet to see a wholesaler who does not send a pic of the house and sq ft bd ba etc.. he says you do that illegal.

3. he said Ohio is leading the nation on enforcement and its going to other states like whats happening here in Oregon.

4. his main take away was close then resell.. of course he talked about double close..

its worth a watch its not the normal guru talking about equitable interest which he quash's

Robert Ellis · Answer

I'd recommend talking to the division of real estate in the state of ohio as well as a columbus ohio attorney to answer questions about that. someone that specializes in real estate. no one will give you a clear answer, better thing is just to get licensed so you don't have to worry about if you are in the gray or not.

Kurt Phillips · Answer

@Rhandell Mitchell this is quite hilarious.  Take @Robert Ellis advice about doing your own homework.  @Brandon Sturgill I'm sure means well but he is a real estate broker and agent.  Hence, by default, the wholesaler is his competition.  Unfortunately, he has used fear tactics and slammed Vena Cox-Jones unduly.  How dare Vena earn money for teaching people her expertise.  I have not personally bought her courses but I have heard her speak on several occasions as well as read a few of her books.  She is a wealth of knowledge and deserves to be paid for what she is willing to teach the investor community.

Wholesaling is a viable and legitimate way to earn money.  Its not easy and you certainly need to be careful about what you say and how you go about it - especially if you get your real estate agent license.  I love wholesalers and wish there were more good ones around to bring me deals!

Brandon Sturgill · Answer

@Rhandell Mitchell  watch this

https://youtu.be/9fi54S8nwUA

After several conversations with the compliance officer at the Division, they are still a bit vague, but firm on the "for a fee, for another" language. Transparency and advertising are important as well. The bottom line is that it's illegal for an unlicensed individual to accept money for "brokering" a transaction...and it is also illegal to advertise anything about a property you do not own...no images or advertisements for sale...you can, however, advertise a contract for sale.

There are very few wholesalers in this city that are following those basic guidelines...so, in combination with the climate of the market, my personal prediction is that the hammer will drop soon...and these guys will be like shooting fish in a barrell.

If you decide to wholesale, you can likely get by with breaking the rules without repercussion for now...but I would look to see what is happening in Oregon right now...so, it's only a matter of time.

The sad part is the slime like vena jones-cox and others are charging newbies thousands of dollars on courses to promote an "illegal" activity...it's like teaching people how to speed at driving school...

Best of luck

Brandon Sturgill · Answer

@Kurt Phillips I think you have incorrectly assumed what my firm does. Wholesalers are not even on the same planet...we don't have competition.

Brandon Sturgill · Answer

@Kurt Phillips Blue Ocean Strategies ;)

Kurt Phillips · Answer

@Brandon Sturgill I must say I love that!  Perfect rebuttal.  I believe you and I would likely agree on many things regarding business.

Rhandell Mitchell · Answer

Thanks @Brandon Sturgill, I'll check this out right away. I signed up for Hondros last night so hopefully I'll have my license soon!

Brandon Sturgill · Answer

@Rhandell Mitchell Having a license is not a silver bullet...it's really not even a requirement to be successful as an investor...but it gives you significantly more opportunity at about every level. Good luck!

Robert Ellis · Answer

in some capacity ys

Are the legalities is Wholesaling more strict in Ohio?

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