Idaho "Dealer in Options" Law

[Josh T.]

Hello,

My name is Josh Thompson and am new to BP and Loving the podcasts by the way.  Josh & Brandon crack me up!  

I have recently found interest in REI. (A LOT of interest) My wife would say I am obsessed:)

In Idaho, we have a "dealer in options" law.  The way I understand it, the law seems to get in the way of a "legit" wholesale deal without a real estate license.  I was wondering if anyone could give me some insight on this? 

Thanks in advance!

Josh

[Jeff Rappaport]

Hey Josh, I am currently wholesaling properties in Idaho and Utah. I can tell you it is much easier to wholesale in Idaho than in Utah. I have had a run in with the Division of Real Estate in Utah which caused me to chat with the Division in Idaho. You should know that I rarely do any double closings or transaction funding. I almost always do assignments. When you put the property under contract you should make sure you make it very clear what is going to happen. In Idaho, the contract is assignable. However, I will always include an addendum with certain disclosures. For example, I will say I am a "for profit" company; not a licensed realtor: not an attorney and not offering any legal advice; and this contract is fully assignable. I have run that by the Division and they were very happy with it. I would also tell you to make sure you seek out the right type of professionals to work with. Make sure you have an investor friendly title company and realtor. I would also make sure whatever paperwork you are going to use for each type of transaction (cash, L/O, owner financing etc) you run by a real estate attorney. You only have to do it once! Hope that helps! Let me know if I can help in any other way.