Wholesaling in TN Illegal w/o license -- Coming down the pipeline

[Allan Smith]

We learned today at the https://www.tnreia.com meeting that the TN attorney general has given verbal instruction to start enforcing wholesalers who don't have a license.

I wanted to open up the conversation to inform those that don't know, and also let the discussion unfold as to backup strategies folks have and how they think this will change things.

[Mindy Jensen]

Originally posted by @Adam Lowe:

@Jay Hinrichs

 I don't think they're going to have much luck cracking down on this. Unless they pass a law where you can't assign contracts anymore....

While I am not familiar with the TN laws regarding wholesaling, I do know that both Florida and Ohio Divisions of Real Estate look down on the 'assignment of contract' method of wholesaling. (As Jay shared, Oregon is also looking at this 'method' of investing. You can be certain most if not all other states are as well.) 

If you do not have the financial ability to close on the property, you can find yourself in hot water with them. The 'Buying a property then turning around and selling it for more money' method of wholesaling is not what they are trying to stop, it's the 'get it under contract, cancel when you can't find a buyer, lie to the seller' method they so vehemently oppose.