Real Estate Investor mentor tells me it's illegal to wholesale

[Seldon Rios]

Hello everyone!

I have recently been in contact with a local real estate investor who's been investing for over 25 years. He agreed to take me in as an apprentice. I asked him that I would like to get into real estate investing by wholesaling. He claims that wholesaling is illegal in New Mexico without a real estate license. He says the only way to invest without a license is by purchasing the property and selling it afterwards; or a double-close.

I have read Brandon Turner's The Book on Rental Property Investing, and The Book on Investing In Real Estate with No (and Low) Money Down, and have listened to hours of podcasts since last year. I don't have any experience in real estate investing, but my mentor has over 25 years; so I don't want to overstep my bounds. 

Does anybody know if wholesaling (assignment contracts) are illegal in New Mexico without a real estate license?

Thank you all!

[Chris Seveney]

@Seldon Rios

Most states it’s illegal based on the way people wholesale because the moment they market a property (or what they say contract) to third parties is not legal as it falls under brokering.

Chances of getting caught are probably slim to none and slim left town.