Met with an investor yesterday, said wholesaling has potential liability issues

[Kyle Cabral]

Hi All,

My partner and I met with our first private lender yesterday, he was very knowledgeable, successful and in general a good guy. We were throwing out questions about REI and came across wholesaling and he said that the strategy can work but has a potential flaw. The flaw he says is that if someone really wanted to get you in trouble, they could, because when you are providing your buyer with a P&S, you are essentially acting as a real estate agent/professional without a license. Was this a valid point by him? If others got wind of wholesaling, could they technically get you in trouble, etc.

Thanks,
Kyle

[Jeremy T.]

This may be an idiotic question, but wouldn't obtaining a license in the state you are wholesaling help to mitigate this issue?