?How do you legally execute a wholesaling transaction?

[Account Closed]

What are the legalities behind wholesaling? If i am not a licensed Real Estate Agent, is this ok? I am curious to know the laws & rules behind this. Thanks!

[Karl Krentzel]

Originally posted by @Account Closed:

What are the legalities behind wholesaling? If i am not a licensed Real Estate Agent, is this ok? I am curious to know the laws & rules behind this. Thanks!

 Great question Grace!

While I am no attorney, I am a Realtor® and Licensed Broker in the State of Arizona who does wholesale, and helps people across the country with the sales skills to do the same.  

Your ability to put a property under contract and subsequently sell it is generally protected under the Contract Clause of the Constitution (Basically says that the State can't make a law that prohibits the otherwise lawful execution of certain contracts.) 

There are some states that restrict wholesale activity (Ohio comes to mind), but there is no law against flipping property on a "double close"

It's helpful to remember in wholesaling, there are two forms of transfer of title you generally deal with.  Assignment of contract (where you simply give up your right to the contract) and Double Close (where you close with either the end use buyer's funds, or your own through transactional funding.) 

So long as you remember that you are a principal in the transaction, and act accordingly, you will be fine!

Happy hunting!

Have a Powerful Sales Day!