The Death of the Wholesaler?

[Dan Powers]

https://fusion.inquirer.com/ne...

I found this article that states in a few months the traditional "wholesaler" will have to get some sort of wholesaling licensee that will apparently add regulation to the profession. On the other side of things it also states how the majority of these wholesale transactions happen in the shadows and are rarely known the to public. Im curious to see how this regulation will be followed through, who is enforcing this regulation, and just the overall effectiveness of the law.

They say the law is meant to prohibit “knowingly make any substantial misrepresentations, make any false promises, untruthfully advertise, or engage in any conduct which demonstrates bad faith, dishonesty, untrustworthiness, or incompetency.” but I'm struggling to see how this will be enforced if the majority of the transactions happen outside the public eye.

I want to hear everyones thoughts on will this be successful. Are the ways of the modern day wholesaler coming to an end, or will this simply be another bump in the road the wholesaler has to overcome?

Dan Powers - Real Estate Agent

[Simon W.]

From the article, it seems like the whole idea of the law is to not make false promises. I don't understand how can the Purchase Agreement will show false promises. 

It's a fair game. Wholesaler are reaching out to people who aren't thinking of selling, most agents have those listings from a listing broker so I am not sure what this license is trying to accomplish.

It can't be enforced, because it is literally an assignment contract. Assignments are legal just like how you can buy an "Option" into stock and then sell that contract. 

"The Greater Philadelphia Association of REALTORS has endorsed the bill." from another article.

It seems like agents are pissed that they can't make as much money as some of these wholesalers. The seller cries later to find out that s/he sold the house for much lower. If you don't know how much your house is worth, that's your fault to even agree to sell. Don't bother shopping around and getting a second opinion or get an appraiser? 

I don't get why people have to always play the victim when it was themselves that didn't do the homework.

No one pointed a gun to have the person sell it at a lower price.