Getting Busted in Ohio for Wholesaling and Praticing RE without a License

[Brian Gibbons]

Read Ch 4735

Get a lawyer

Get licensed and do wholesaling in OH

02 July 2014

http://www.com.ohio.gov/documents/Fall10REdiscipline.pdf

LYNETTE S. MALY, Twinsburg, Ohio, was found by the Commission to have violated Revised
Code 4735.02, unlicensed activity, and was accessed a civil penalty in the amount of $500.00,
when she held herself out as engaged in the business of real estate, while not licensed under
Revised Code Chapter 4735.

SHARI L. MORTER, Stow, Ohio, was found by the Commission to have violated Revised Code
4735.02, unlicensed activity, and was accessed a civil penalty in the amount of $500.00, when
she held herself out as engaged in the business of real estate, while not licensed under Revised
Code Chapter 4735.


MIKE ZUREN, Willoughby, Ohio, was found by the Commission to have violated Revised Code
4735.02, unlicensed activity, and was accessed a civil penalty in the amount of $1,000.00. The
Commission found that Mr. Zuren, when in expectation of collecting a fee, commission or other
valuable consideration, held itself out as engaged in the business of selling real estate in a
publication and offered or attempted to offer, listed or attempted to list 20 real estate properties
in the publication, without first being licensed under Revised Code Chapter 4735.

SHARI L. MORTER, Stow, Ohio, was found by the Commission to have violated Revised Code
4735.02, unlicensed activity, and was accessed a civil penalty in the amount of $500.00, when
she held herself out as engaged in the business of real estate, while not licensed under Revised
Code Chapter 4735.

GARY UNDERHILL, Wooster, Ohio, as the result of an investigation of the formal complaint,
was found by the Commission to have violated Revised Code 4735.02, unlicensed activity, and
was accessed a civil penalty in the amount of $2,500.00. The Commission found that Mr.
Underhill attempted to or assisted in the negotiation of the sale, exchange, purchase, rental or
leasing of real estate on 47 occasions without first being licensed under Revised Code Chapter
4735.


PAM BALINT, Ravenna, Ohio, was found by the Commission to have violated Revised Code 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $3,500.00. The Commission found that Ms. Balint acted as a real estate broker or real estate salesperson without being licensed under Chapter 4735. Ms. Balint’s conduct included accepting phone calls inquiring about the subject property and directing or assisting in the procuring of a prospective buyer to purchase the subject property. In addition, on five occasions Ms. Balint advertised or held herself out as engaged in the business of selling real estate. She placed signs with her phone number on it in the subject property’s yard. She ran an ad in a newspaper regarding real estate for sale with her phone number and name. She provided a flyer marketing the subject
property with her name and phone number on it. She marketed the property on the phone on two occasions.

EVIE KIDDER, Akron, Ohio, was found by the Commission to have violated Revised Code 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $21,000.00. The Commission found that she consistently took actions to list, negotiate the sale of, sell a property, and made several requests to collect a commission on the sale of a property. Ms. Kidder acted as a real estate broker or real estate salesperson without being licensed under Chapter 4735.

TONY HOFFMAN, Akron, Ohio, was found by the Commission to have violated Revised Code 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $21,000.00. The Commission found that he consistently took actions to list, negotiate the sale of, and sell a property and made several requests to collect a commission on the sale of a property. Mr. Hoffman acted as a real estate broker or real estate salesperson without being licensed under Chapter 4735.

DIANE SHELTROWN, Waynesville, Ohio, was found by the Commission to have violated R.C. 4735.02, unlicensed activity, but no penalty was imposed. Ms. Sheltrown, on 2 separate dates, directed and assisted in the procuring of prospects which was calculated to result in the sale of a property and she intended or expected to receive compensation or other valuable consideration for the conduct.

MUNNA AGARWAL, Euclid, Ohio, was found by the Commission to have violated ORC 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $1,000.00. The Commission found that Mr. Agarwal agreed to negotiate and negotiated a potential purchase of property, agreed to list and listed, agreed to offer and offered a property for sale, advertised and held himself out as engaged in the business of selling real estate, directed and assisted in the procuring of prospects and in the negotiation of a transaction which was calculated to result in the sale of a property and intended or expected to receive compensation or other valuable consideration for the above conduct, while not licensed under Chapter
4735.

ELYHUE E. DUFF, Akron, Ohio, was found by the Commission to have violated ORC 4735.02, unlicensed activity, and was assessed a civil penalty in the amount of $1,000.00. The Commission found that Mr. Duff assisted in the procuring of a prospect and negotiation of a transaction, which was calculated to result in the sale of a property, wrote a sales contract for the parties, and intended or expected to receive compensation or other valuable consideration for the above conduct, while not licensed under Chapter 4735.

[Brian Gibbons]

@Josh Caldwell

The option release in OH I wish would work.  It is a technique recommended by 

Attorney Jeff Watson.

I think buying on-with

• sub2, 
• transactional funding, 
• land contact, 
• private money credit partner, 

then reselling

 is the way to go in OH.

[Jay Hinrichs]

@Josh Caldwell@Brian Gibbons

  in theory your advice to gather all your lawyers sounds good until you have to pay for said lawyers... most folks start in wholesaling because they are very tight on funds last thing they probably can do is stroke a 5k retainer check have their team of lawyers get right on this on how to circumvent the laws.. and even if a lawyer says its OK that does not mean crud if the state says it is not.. you lose that one every time unless you have really deep pockets to fight it...

you should look at those videos that the ATTORNEY did with the state regulators they talk about all the strategies you mention and none of them will stand up... IF brought in front of this particular states regulators... lets face it this wholesaling without a license will be the next target Just like what happened to Us in the mortgage industry were I was HML for 25 years then had to go out and get an NMLS license... ( hated studing for that thing).

The answer she is clear.. you buy the property THEN  you sell the property.. Many states do not allow a double close... Its the whole reason my company exists is to facilitate these transactions and keep people out of big trouble and any one who does big volume is a target.. I had one of my guys in MS get a cease and desist.. then still went down the wrong path and they arrested him on a Friday night so he could not get bail until Monday sitting in Jail over the weekend = no fun.

And here on BP its all hearsay anyway non of us are the regulators we can all have our opinions but they don't mean squat at the end of the day..

[John Hamilton]

This thread has definitely run away, but amazingly still on topic, most of the time.

Anyway, getting a license in my opinion is the best option, unless you do one of two things, if I followed the findings/advise on this thread correctly:

1) Buy outright and then resell, (L/O, Wrap and Subject To was also mentioned but doesn't require purchase, per se), as in flipping. No license needed. Money? YES!

2) Double closing on an assigned contract, with the intent to "buy". Assumptions there are is "assigning" even allowed in your state and with title companies, you can show full intent on you/LLC purchasing said property (loan processing; Transactional, HML, LOC, Uncle Joe), and you don't market "publicly" to other investors or buyers (you should have a list of buyers and know their criteria if you do this type of investing).

The thing is way too many wholesalers (bad and good) have been doing numerous deals since the housing bubble burst. The "gurus" - people selling a BS program to make money off of suckers - and others in the industry have made billions off of telling unsuspecting folks with no money, credit, or jobs in some cases, they could be rich in one deal with no money and no risk. Well, if it sounds too good to be true, it usually is.

The governments (local and feds) are just now catching up with passing laws on making things illegal when it comes to RE, where they weren't "illegal" 5 years ago, or even 2. All the government wants is to follow up on complaints (real or not) and to get their cut (license, registering, etc) and stop the "illegal" practice. They make money individually knowing what the laws are and what is coming down the pike. But, I digress.

It's all about risk, right? If you are willing to do something in a grey area, or knowing it's not going to outweigh the benefits, but you know it's illegal, then more power to you. If you are someone who doesn't like risks, get licensed. 

I for one, am still unsure, if being licensed, can I really do all of RE wheeling and dealing and still reap the same benefits (cash) and still remain ethical with full disclosure and still operate at a positive. I do see a couple of advantages though, without doing research of any kind, and that is to have access to the MLS and post properties for sale, get credibility with other RE pros and the general public, get commission on an actual sale and hopefully still make some money on the side or in deals with your own money.

Rhetorical Questions are: Can I advertise my own properties on the MLS? Who gets a cut? What if I can't? What then? Isn't it a conflict of interest if I get someone to sell to me at a price I can move to then charge the buyer more, even with full disclosure? Is this practice frowned upon by the powers that be? What is a reasonable "more"? Is 50% unethical or even allowed? What if I personally want to purchase a house on the MLS (not sure I would ever do that, but it can happen, I guess) to flip?

All I'm saying is just to say getting licensed makes things better, I don't know. There is too much I don't know about it (pros and cons) in having a license. 

I'd rather buy the stupid house and flip it or fix and flip. Saves me from having to deal with a broker, the NRA (or whatever the alphabet regs are called), listings that I get 3% on (even though I did 90-100% of the work to get it sold), dealing with sellers who think their house is worth more than it is and blaming you because there house isn't sold because they were stubborn on their asking price, dealing with buyers because you can't find that "perfect" house at their unreasonable price, investors who call you for comps without intending or means to buy the target house let alone a pack of gum, or want deals to assign and walk away because they can't close (happens to other wholesalers, too), or a number of headaches that I would have to take on being a licensed RE agent as well as an investor.

Not sure if this helped anyone out, but I was chiming in with my opinion and observance of this long thread (I think this one should get an award).

For grins and giggles, I'll be researching more about licensing and brokers in my area and State laws in Florida regarding RE investing. If there is a definite advantage, why not do it? If not, then I'm happy with just fixing and flipping. I'll make more money than wholesaling anyway. Wholesaling never sat right with me anyway. I for one would disclose to the seller that I intend to buy (and I would) but reserve the right to sell my option subject to funding. The buyer doesn't need to know anything except that you have a contract and your selling your option to buy to them at a certain price. At least, that's what I thought wholesaling was, even though that person may be buying to use to live in and not resell. 

[Brian Gibbons]

@John Hamilton

Florida is cracking down on people brokering paperwork as if they are OWNERs, and they not on title.  Ohio and California too.  

Advertising residential property with pictures, not citing they are selling an agreement.  

Wholesalers telling sellers they have CASH BUYERS-INVESTORS and not closing if their so called "cash investor" does not buy, wasting 3+ precious months of summer marketing time.

Now don't get me wrong, 

Agents that take a listing (buying a listing) and not being straight with the owner about pricing the property as per SOLD COMPS are hurting sellers too.  Property does not get sold.  But that is not the issue in this thread.

Get licensed and act as a principal, disclose you are not acting as a fiduciary agent, and give the seller an offer.

[Chris Martin]

Can't someone lock this thing???

@John Harvey

Your post reveals the reality that many states want people licensed, largely, so they will theoretically become consciously competent. Right now, "wholesalers" (I hate that word) are mostly unconsciously incompetent. They are largely without experience, have not done "a deal", and clueless in many regards. Exceptions? Certainly. But my belief is that by requiring that people get licensed, various states feel that people will see "the system" of brokerage and that "system" really has no place for a "traditional wholesaler". Brokers will get commissions, just like the system ordered!

I have nothing against people or companies selling contracts. Banks in Ohio advertise "their" property before the foreclosure has been perfected. They don't own it. Anyone complaining? Any disciplinary actions? No. And honestly, there shouldn't be(2). Laws are created to curb abuse. The premise is that abuse is not in the "system"(1) created by states and the industry. Any abuse in the system is statutorily eradicated (ask any politician;) Different states see different levels of "abuse". Example: look at a standard contract in SC (pg 4) and there is a Megan's Law clause. Many people don't know about this because only 15 or so states have this clause. In reality, in Ohio specifically, LameO wholesalers prompted the ORC changes (see my post many pages ago) and as a result OH cracked down.

Get licensed then screw with people (sellers) with "traditional" wholesaler tactics... and you will be disciplined by the "system" and eventually lose your license. When you get licensed, you are the "system".

(1) Don't bellyache about the bank bailout. The banks paid it all back and billions in excess... and taxpayers "won" economically. Don't agree? Show FACTS in a separate thread. You will lose the argument.
(2) In OH (like many other states), banks have "rights" but technically until they get the deed, they are not owners. With lenders, this phenomonon happens in all 50 states from what I've seen.

[John Hamilton]

@Chris Martin  

Yes the system seems to be the only way legally to conduct any type of real estate transactions, as most states are cracking down, probably based on behavior and ethics of most wholesalers (generally speaking) and complaints from sellers and RE agents/brokers.

I don't argue (not arguing really, just playing devil's advocate) whether or not the banks paid back their bailout. However, did they do what they were supposed to do and open up their lending to pump back into the economy (start-ups, LOC, refi, harps)? I don't think they did that, which was, I believe, one of the mandates for the bailout. I may be wrong.

@Brian Gibbons

@Brian Gibbons

 You are wise beyond your years. I eventually will opt in to get licensed, since I live in Florida and used to live in California and Ohio. I still have family there and may want to conduct business in each state at some point. I'm sure I'll have to get licensed in each state and a business license, too.

I guess the wholesale, as we know it, investor i slowly coming to an end. I know that wholesale tactics (bringing and buyer and seller together) was done before the housing bubble burst. Lately, It was just so prevalent and too many dangerous and ignorant people doing wholesaling that it's demise was inevitable.

Like I said, I will stick to fix and flips or other ways to be principal on title. If I do get a license, I do see advantages outweigh the disadvantages. 

[Bill Gulley]

John, agents can and do list on the MLS properties they own, you'll see the disclosure "Owner/Agent", they pay their broker and the selling broker/agent, if they have any sense they won't take a commission.

John, I often think like a regulator since I was one. I'm just pro-investor/operator.

Chris, it depends if the state is a title or lien state as to the bank's ability to advertise, in a lien state, as Ohio, the courts may give permission to advertise subject to the proceedings. Title states, the mortgagee holds title, owners retain owner's title rights. 

Get a license, act as an agent!

Or, buy it yourself, then flip it for big profits, but only after you enhanced the value of the property......go paint it. LOL

Indemnification by the banks has been taken care of, but I'd like to see more jail time and not just for the peons. That can still happen. 

Brian, 337 posts? 17 pages of this stuff? There are some horrible opinions in this book!!!

All real estate is local. :)

[Bill Gulley]

John, agents can and do list on the MLS properties they own, you'll see the disclosure "Owner/Agent", they pay their broker and the selling broker/agent, if they have any sense they won't take a commission.

John, I often think like a regulator since I was one. I'm just pro-investor/operator.

Chris, it depends if the state is a title or lien state as to the bank's ability to advertise, in a lien state, as Ohio, the courts may give permission to advertise subject to the proceedings. Title states, the mortgagee holds title, owners retain owner's title rights. 

Get a license, act as an agent!

Or, buy it yourself, then flip it for big profits, but only after you enhanced the value of the property......go paint it. LOL

Indemnification by the banks has been taken care of, but I'd like to see more jail time and not just for the peons. That can still happen. 

Brian, 337 posts? 17 pages of this stuff? There are some horrible opinions in this book!!!

All real estate is local. :)

[Michele Rok]

is there any way around this? Just if I control the paper and sell to a buyer I have to have my license? Why?

[Account Closed]

The NAR and other agencies have massive amounts of money at stake and therefore they heavily lobby lawmakers. You have at most a few million liquid???? Game Over.

IMO, Government and lobbyists are the problem here. Unfortunately, self starters and do'ers are the casualty. The American entrepreneur has become outlawed.

[Brian Gibbons]

@Bill Gulley

There's a lot of pages in this thread but I think if people would just listen to the sane ones they would be steered  down the right path

Having some time with the sales license can only help you

Getting on title can only help you

[Bill Gulley]

Originally posted by @Brian Gibbons:

@Bill Gulley

There's a lot of pages in this thread but I think if people would just listen to the sane ones they would be steered  down the right path

Having some time with the sales license can only help you

Getting on title can only help you

 You can't teach someone who is not willing to learn. When the mouth (or fingers) are engaged, the ears are closed. I'm actually concerned about younger newbies, a study was done in 2011 I believe it was, 60% of college students were identified as having some type of personality disorder, 60%! They also spent less than 6 hours a week, a week, doing out of classroom studying. Much of the blame was on technology, high social pressures to achieve and tech devices that were never turned off! What ever happened to logic and drinking beer in college?

What we have is a failure to communicate!  :) 

[Brian Gibbons]

Well I coach boy 10 - 18 in lacrosse, where they have to work together.  

I believe there has been a cultural change I have seen in the last 15 years or so, there's a bit of lip and disrespect to their team mates at times, not all but many.  It is "clique-y"

clique
noun \'klek, 'klik\
: a small group of people who spend time together and who are not friendly to other people

Just recently a Jets player hit their own quarterback over an argument in the lockerroom and broke his jaw!

http://espn.go.com/new-york/nfl/story/_/id/1341688...

NO espirit de corps any more

esprit de corps

noun esprit de corps \is-ˌprē-də-ˈkȯr\

: feelings of loyalty, enthusiasm, and devotion to a group among people who are members of the group

The level of excellence in school I think is hurt by molly coddling

mollycoddle (mol'e-kod'l)
v.tr. mollycoddled, mollycoddling, mollycoddles
To be overprotective and indulgent toward. See Synonyms at pamper.
n.
A person, especially a man or a boy, who is pampered and overprotected.
[molly, milksop (from Molly, nickname for Mary) + coddle.]
mol'lycod'dler n.

Over praising kids is a big mistake.

Everybody gets a trophy. Just for showing up!

This article

http://www.nytimes.com/2013/09/25/opinion/losing-i...

Losing is good for you!...

When children make mistakes, our job should not be to spin those losses into decorated victories. Instead, our job is to help kids overcome setbacks, to help them see that progress over time is more important than a particular win or loss, and to help them graciously congratulate the child who succeeded when they failed. To do that, we need to refuse all the meaningless plastic and tin destined for landfills. We have to stop letting the Trophy-Industrial Complex run our children’s lives.

Real estate is about being tough and dealing with alot of failure before success.

If you were a trophy kid (trophy just for showing up) growing up, you just just might not make it in real estate.

The EQ (Emotional Quotient) is more important than IQ, or book smarts.

http://www.forbes.com/sites/travisbradberry/2014/0...

Emotional intelligence is the single biggest predictor of performance in the workplace and the strongest driver of leadership and personal excellence.

Of all the people we’ve studied at work, we’ve found that 90% of top performers are also high in emotional intelligence. On the flip side, just 20% of bottom performers are high in emotional intelligence. You can be a top performer without emotional intelligence, but the chances are slim. Naturally, people with a high degree of emotional intelligence make more money—an average of $29,000 more per year than people with a low degree of emotional intelligence. The link between emotional intelligence and earnings is so direct that every point increase in emotional intelligence adds $1,300 to an annual salary. These findings hold true for people in all industries, at all levels, in every region of the world. We haven’t yet been able to find a job in which performance and pay aren’t tied closely to emotional intelligence.

I find many US Veterans and NCAA Student Athletes have strong EQ.

What do you think, @Bill Gulley

Is USA just WAY TOO SOFT?

by the way, USA low in test scores internationally...

http://www.usnews.com/education/blogs/high-school-...

[Bill Gulley]

True. 

Every generation gets softer, my kids drove their own cars, I drove mom's car or my bike, my dad rode a bike or walked to school. His dad didn't have a bike, he walked 2 miles. His dad didn't have a horse, he walked 5 miles and wrapped his shoes up in the winter.  His dad may have killed breakfast before going to work to go to school, he did go to school. That's as far back as I can go. 

Today, kids don't even leave home, they plant their underwear covered butts in front of a computer to go to school, while drinking a beer probably.

Just give me a button to push, I want it now! No time to learn, no time to listen, just show me the steps so I can go to the dance and get some money. LOL 

Ahhh, the twenty's :) 

[James Wise]

Originally posted by @Michele Rok:

is there any way around this? Just if I control the paper and sell to a buyer I have to have my license? Why?

You can buy it then do whatever you like with it.

If you do not want to buy it but would like to earn money by selling it to someone who does want to buy it that is great. I do that every day as a real estate broker.

[Jerry Stanford]

@James Wise...This seems to be a pretty hot topic.  I always understood and accepted your point of view. I see they have been cracking down in OH.  It hasn't gotten there yet but I believe it's trying to go that way here in IL because the Attorney General  see a lot of complaints from people who were taken advantage of.  It is all about the laws in each state and each state is different.  I've run into quite a few people who do not want to list with a broker due to the commission. It's an immediate turn off for them. I believe having a license does help cover a lot of bases and I believe it is worth it for many reasons.  Would the general advice for a new investor with no money, no deals or investing experience be 1) to get a license and become a broker or  2) wait until you have enough money to buy the property yourself or 3) do a subject to in order to take ownership of the property??

[James Wise]

Originally posted by @Jerry Stanford:

@James Wise...This seems to be a pretty hot topic.  I always understood and accepted your point of view. I see they have been cracking down in OH.  It hasn't gotten there yet but I believe it's trying to go that way here in IL because the Attorney General  see a lot of complaints from people who were taken advantage of.  It is all about the laws in each state and each state is different.  I've run into quite a few people who do not want to list with a broker due to the commission. It's an immediate turn off for them. I believe having a license does help cover a lot of bases and I believe it is worth it for many reasons.  Would the general advice for a new investor with no money, no deals or investing experience be 1) to get a license and become a broker or  2) wait until you have enough money to buy the property yourself or 3) do a subject to in order to take ownership of the property??

 I would suggest doing number 1.

After you have saved you can buy your own properties. Doing number 1 will increase your earnings and help you get to number 2 faster.

I have never looked into subject to as it seems predatory to me. You are taking the only asset the seller has "house" and leaving them with all of the liability "loan"

[Jerry Stanford]

@James Wise...Subject was one of the things the IL Attorney General was trying to crack down on because so many people were being left with the loan and no resolution. 

[Barbara Wallace]

Originally posted by @John Horner:

Originally posted by @Brian Gibbons:

If you're in Ohio or California or Florida get license if you're doing wholesaling

whether it's option contracts or sale and purchase agreements that are assigned, get licensed and act as a principal

 So my business partner has his license and called the Ohio Div of RE earlier this week to ask about marketing properties with equitable interest.  The fellow on the phone instantly went into primal jerk attack mode and instantly threatened my partner with fines and loss of license.  He said "You must OWN any property that you are going to market without a listing agreement".

But the article shared from the Ohio Div of RE Newsletter clearly states that it is OK to do this IF you are licensed.

What the heck is going on?  How are they so disconnected from each other?  

 That's because they do not know what they are talking about.  One hand does not know what the other is doing. Check out the video posted further up the page.

[Logan Hicks]

Numbers game people.

Cost of doing business is what this is.

Take HSBC for example. During the major campaign to force Iran from building a nuclear facility capable of enriching uranium, we placed a financial embargo on them.

HSBC was caught moving money for Iran at a steep markup of 5-8%.

The total moved money ranged in the billions.

US government fined them a few million dollars in penalties. No arrests made.

TL;DR, play dumb, pay the fine. Rinse, Lather, Repeat.

Ill pay fines all day as long as theres no criminal penalty associated with it.

If I can make 1 million dollars on a bulk wholesale, and only be fined up to 50k for gettng caught, but its completely illegal as an agent, Im more than happy to play the scooby Doo. 

Also, Non-US citizens cant have civil judgements deemed against them on the local level, as US courts dont hold jurisdiction on foreign non-citizen individuals in foreign countries. Can a judgement be ruled in the US? Sure. But creditors have no authority to collect on that judgement in the country of the foreign individual.

Orchestration of the sell of real estate isnt punishable by any courts, regardless of license status. Theres also no such thing as conspiracy to commit the distribution of real estate.

Only the attempt to sell the property directly by acting as an agent or broker is.

However, its not illegal or in civil violation for one individual to make a specific sign, a separate individual to post a said sign at a location, and for a foreign individuals information to be on the said sign. The fourth person is simply there to unlock the door and walk through the house with you.

Collectively, you accomplish the exact same objective, the key difference is you do it outside of the enforcement jurisdiction of the local, state, and federal authority. 

Sometimes you gotta play dirty to get ahead ;)

[Brent Coombs]

@Logan Hicks, in Ohio, in court, good luck with that defense!...

[Logan Hicks]

@Brent Coombs Why would I show up to court? I didnt do anything wrong.

On top of that, the only person that can be deemed at fault would be the foreign individual, who cant be penalized, because enforcibility is limited to the borders of the state by the state courts, and can only be raised by additional pursuits to the federal level at best.

Even at the federal level, they cant seize assets, they cant seize funds, or lien property unless its owned by the foreigner, and they cant arrest anyone, because no crime was commited by the other 3 parties.

The absolute most they could attempt to do is maybe attempt to pursue the judgement in a foreign court, who doesnt have to legally honor the foreign judgement, and they probably wont. On top of that, collection efforts will almost always be placed on the burden of the US Federal or state courts, who outsource to local US based debt collectors, who dont possess the means to collect debts in foreign countries. Maybe call and annoy them maybe, at best, but then US collections laws apply to the US collection companies, complicating their collections efforts substantially. Humorously enough, this could actually lead to counter suits for collections practices violations, and end up getting the states and/or collections agencies sued and/or fined.

If you talk to most collections companies, they wont even attempt to collect foreign debts.

[Brent Coombs]

@Logan Hicks, and here I was thinking you were using metaphors and euphemisms, because this thread is about what might happen to YOU if you practice Wholesaling RE in Ohio without a License!...

[Michael Quarles]

1- get a license (I wouldn't) but if so take a net listing. 

2- actually buy the property then sell it (so many ways to accomplish this )

3- make all the money.  

[Jay Hinrichs]

@Logan Hicks  correct on the foreign status and collection efforts but I don't see a lot of foreigners in the wholesaling trades  I suppose there are a bunch trying James Wise talks about Aussies calling him with smoking deals that are not.

and this is why foreigners cant get loans.. they are non recourse in nature and foreigners can just walk no problem for them.

I don't think your correct if one is caught selling re without a license gets fined then gets caught again I am pretty sure there is the ability to get jail time.

AS quarles says just man up and buy the frigging thing.. these houses generally are 20 to 50k in the lower end wholesale and if you don't have any cash find a cash partner.

that takes all of the guess work out of it. and makes you stand up as a proud investor not someone like yourself who see 's this as a game and does not care about enforcement actions.