DO YOU NEED A LICENSE TO BECOME A WHOLESALER

[Dikeem S Hill]

Hope all is well,

I am new to #BiggerPockets. The reason why I decided to sign up for the site was  to gain more insight on Real Estate. I recently purchased an Whole Selling training guide for a real estate 'Guru', in which he speaks about being an Real Estate Entrepreneur without obtaining a license to flip and sell discounted properties. Being a newbie in the industry I feel its best for me to get as much information on wholesaling and the general terminology of real estate in order to truly become successful. 

My question is should look into become certified to become a wholesaler or is it not necessary, as the 'Guru' says. 

Thank You!

[Karen Rittenhouse]

@Dikeem S Hill No, you do not need a license and wholesaling is legal in every state.

The reason is that you do not need a license to buy and/or sell anything for yourself - anything you own. With wholesaling, you purchase the property, actually close on it, then resell just like any house that you purchase to live in. The difference is, you do not live in it you simply purchase and sell both at a discount and in a very short time frame.

The reason so many say you might need a license is that they confuse wholesaling with assigning. With assignments, you do not close on the sale, you never own the property. You simply get the property under contract and sell the contract (assign the contract) to a buyer. Assignments are not legal in all 50 states.

Good luck to you and thanks for asking!