Washington laws regarding wholesaling

[Lynn Knaak]

I need to know if I would need a license in Washington State to wholesale, I’ve had people tell me you don’t need one and others saying you do need one. Ive tried finding the answer for myself but no luck so far. My plan is to definitely get one in the near future though, I’m just wondering if I really do need to get one before I start. 

[Jay Hinrichs]

Originally posted by @Maurice Smith:

@Lynn Knaak I would definitely encourage everyone to put a set of questions together and sit down for an hour or so, and get the basics surrounding the legality of wholesaling in your state.

That's said, if you are seeking some additional opinions for personal consumption/consideration, I'd personally recommend engaging at your local REIA. Make sure the REIA is part of the National REIA too. You will find ever sort of investor their; including, wholesalers. If your state is not wholesale-friendly you will likely find licensed individuals that wholesale as well. After all, it's just one of many exit strategies, which I am sure you are aware.

BP is a great place, but I’ve found SOME members to be particularly unwelcoming to wholesalers. I have gained a lot of value, education, and even access to capital at the local REIAs.

Lastly, get the license. It just expands the options you can offer the seller. If the property is marketable in current condition and a cash offer isn’t right for them, you can list it. One of the first conversations I had with my real estate attorney after general legalities, was about how to ethically and effectively wholesale as a licensed individual. I’d have that conversation and let an attorney give you their professional legal opinion.

There is ONLY ONE PLACE to go find this answer and its free.. go to the department of real estate walk in talk to an enforcement officer and lay out your bizz plan  full plan..  if its just tie someone up with no ability to close it and assign the contract and thats your bizz model explain that and then ask if a license is needed.. then ask if you can legally advertise a home you do not own ??  ask them if a small amount of Earnest money and a purchase contract is considered equitable interest ( Oregon it is not)   Lawyers will give you both sides one will say fine will say no..  and for sure the public does not know they are not the ones who make the laws and enforce them. so why would you ask anyone other that the state agency ??? i dont get it..   well in fact I do get it.. people just want to hear what they want to hear so if Johnny says its OK it must be OK..