Learning honest wholesaling in Columbus

Learning honest wholesaling in Columbus

Investor · Columbus OH · Member since 2020 · 13 posts · 11 votes

Hello. I am trying to start wholesaling in Columbus. I am not new to investing but am new to wholesaling. I've been working hard to educate myself on the end to end process (e.g., souring leads, negotiations, calculating MAO's, double closings vs. assignments, understanding the different markets/neighborhoods in Columbus, etc. etc.). The part that I'm stuck at is wholesaling nuances in OH specifically. I understand that a broker's license is needed to legitimately wholesale a property, and that without one, you can only market one's legal interest in the property. Is there a resource (a book, training, website, or anything else) anyone can recommend that will help me understand this area better? I understand that marketing the legal interest to a property means you cannot market photos of the property, but I see plenty of wholesalers do this, while still advertising that it's a "contract for sale".

Similarly, how does one show the property to investor buyers without photos? Can I even allow end buyers access to scout the property physically if I'm not legally allowed to market the property itself?

And if I can only market a contract for sale, can I even claim to the seller that I can "provide a cash offer"? Can I legitimately sell my services as a cash offer even though I'm not the end buyer? 

Any guidance / direction would be appreciated. I've hit a roadblock and am having trouble findings answers to the above. Thanks!

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Investor · Columbus, OH · Member since 2018 · 44 posts · 48 votes
5y
Originally posted by @Mahinda Horapakse:

Hello. I am trying to start wholesaling in Columbus. I am not new to investing but am new to wholesaling. I've been working hard to educate myself on the end to end process (e.g., souring leads, negotiations, calculating MAO's, double closings vs. assignments, understanding the different markets/neighborhoods in Columbus, etc. etc.). The part that I'm stuck at is wholesaling nuances in OH specifically. I understand that a broker's license is needed to legitimately wholesale a property, and that without one, you can only market one's legal interest in the property. Is there a resource (a book, training, website, or anything else) anyone can recommend that will help me understand this area better? I understand that marketing the legal interest to a property means you cannot market photos of the property, but I see plenty of wholesalers do this, while still advertising that it's a "contract for sale".

Similarly, how does one show the property to investor buyers without photos? Can I even allow end buyers access to scout the property physically if I'm not legally allowed to market the property itself?

And if I can only market a contract for sale, can I even claim to the seller that I can "provide a cash offer"? Can I legitimately sell my services as a cash offer even though I'm not the end buyer? 

Any guidance / direction would be appreciated. I've hit a roadblock and am having trouble findings answers to the above. Thanks!

Hey Mahinda,

I'd be happy to jump on a call with you sometime and walk you through the process, as well as the do's and don'ts. Feel free to reach out to me to setup a time to chat. Thanks!

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  • Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Mahinda Horapakse:

    Hello. I am trying to start wholesaling in Columbus. I am not new to investing but am new to wholesaling. I've been working hard to educate myself on the end to end process (e.g., souring leads, negotiations, calculating MAO's, double closings vs. assignments, understanding the different markets/neighborhoods in Columbus, etc. etc.). The part that I'm stuck at is wholesaling nuances in OH specifically. I understand that a broker's license is needed to legitimately wholesale a property, and that without one, you can only market one's legal interest in the property. Is there a resource (a book, training, website, or anything else) anyone can recommend that will help me understand this area better? I understand that marketing the legal interest to a property means you cannot market photos of the property, but I see plenty of wholesalers do this, while still advertising that it's a "contract for sale".

    Similarly, how does one show the property to investor buyers without photos? Can I even allow end buyers access to scout the property physically if I'm not legally allowed to market the property itself?

    And if I can only market a contract for sale, can I even claim to the seller that I can "provide a cash offer"? Can I legitimately sell my services as a cash offer even though I'm not the end buyer? 

    Any guidance / direction would be appreciated. I've hit a roadblock and am having trouble findings answers to the above. Thanks!

    Hi Mahinda, I would reach out to several of the bigger wholesalers here in Columbus and see what they have to say. I would get connected to the CREAM group on Facebook, you'll find a lot of good connections there. Good luck!

  • Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    5y

    Why not get your real estate license.  Go all in - or don't go at all.  Wholesaling in my state isn't even legal and those who do dabble are not the ones getting the bigger deals/pay-off.  Challenge yourself to do more, be more...

  • Investor · Columbus, OH · Member since 2018 · 44 posts · 48 votes
    5y
    Originally posted by @Mahinda Horapakse:

    Hello. I am trying to start wholesaling in Columbus. I am not new to investing but am new to wholesaling. I've been working hard to educate myself on the end to end process (e.g., souring leads, negotiations, calculating MAO's, double closings vs. assignments, understanding the different markets/neighborhoods in Columbus, etc. etc.). The part that I'm stuck at is wholesaling nuances in OH specifically. I understand that a broker's license is needed to legitimately wholesale a property, and that without one, you can only market one's legal interest in the property. Is there a resource (a book, training, website, or anything else) anyone can recommend that will help me understand this area better? I understand that marketing the legal interest to a property means you cannot market photos of the property, but I see plenty of wholesalers do this, while still advertising that it's a "contract for sale".

    Similarly, how does one show the property to investor buyers without photos? Can I even allow end buyers access to scout the property physically if I'm not legally allowed to market the property itself?

    And if I can only market a contract for sale, can I even claim to the seller that I can "provide a cash offer"? Can I legitimately sell my services as a cash offer even though I'm not the end buyer? 

    Any guidance / direction would be appreciated. I've hit a roadblock and am having trouble findings answers to the above. Thanks!

    Hey Mahinda,

    I'd be happy to jump on a call with you sometime and walk you through the process, as well as the do's and don'ts. Feel free to reach out to me to setup a time to chat. Thanks!

  • Real Estate Agent · Delaware, OH · Member since 2016 · 2 posts · 2 votes
    5y

    Here is a video that is linked on the Ohio Division of Real Estate website. Interview with attorneys from the division 

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Mahinda Horapakse:

    Hello. I am trying to start wholesaling in Columbus. I am not new to investing but am new to wholesaling. I've been working hard to educate myself on the end to end process (e.g., souring leads, negotiations, calculating MAO's, double closings vs. assignments, understanding the different markets/neighborhoods in Columbus, etc. etc.). The part that I'm stuck at is wholesaling nuances in OH specifically. I understand that a broker's license is needed to legitimately wholesale a property, and that without one, you can only market one's legal interest in the property. Is there a resource (a book, training, website, or anything else) anyone can recommend that will help me understand this area better? I understand that marketing the legal interest to a property means you cannot market photos of the property, but I see plenty of wholesalers do this, while still advertising that it's a "contract for sale".

    Similarly, how does one show the property to investor buyers without photos? Can I even allow end buyers access to scout the property physically if I'm not legally allowed to market the property itself?

    And if I can only market a contract for sale, can I even claim to the seller that I can "provide a cash offer"? Can I legitimately sell my services as a cash offer even though I'm not the end buyer? 

    Any guidance / direction would be appreciated. I've hit a roadblock and am having trouble findings answers to the above. Thanks!

    Here is a good video The Ohio Division of Real Estate made about wholesaling in Ohio https://www.youtube.com/watch?v=9fi54S8nwUA https://www.com.ohio.gov/real/

    Pretty much you cannot do it but everyone does anyways. The division is pretty slow to respond to things.

  • Investor · Columbus OH · Member since 2020 · 13 posts · 11 votes
    5y

    @Remington Lyman@Patricia Steiner@Richard Shearrow@Zeke Liston@Sean GrabowThank you for the responses. @Sean Grabowthat would be really appreciated. Thank you so much for the offer. I'll send you a note

  • Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y

    @Mahinda Horapakse most of the properties I deal with here in Columbus OH are off market properties, what I assume would be similar to what you consider wholesaling. I find that #1 you need to gather as much information upfront as possible. Even if you can't get photos of the property, get a description or condition report of the inside. Also gather what their price would be. #2 get a legitimate buyer who can make an offer based on your description given. Most times my investors won't even see the inside of the property before they are in contract. Not sure how you continue the rest, as I do my work as a licensed agent working on behalf of my clients.

  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    There are plenty of wrong ways to wholesale and less ways to do it right. As others said, I would reach out to those who are successful in doing it. If you want to jump into this as a career I would also consider getting your real estate sales license for down the road. @Mahinda Horapakse

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