is wholesaling illegal?

[Felix Goldstein]

That was really my biggest challange when getting started investing in real estate. i didn't read a lot of the post in the wholesale catagory, but i have not seen one taht address this. When i got started it seemed like everyone told me that "wholesaling" is illegal.  doesn't anyone know that it IS LEGAL to market a property as your own as soon as you have it under a purchase agreement or an option to purchase.  It will be interesting to read everyones responses.  

To bad toooo many "wholesalers" sign Joint venture or co-wholesale agreements. then they end up brokering without a license and that is illegal.

[Christopher Brainard]

@Felix Goldstein

Well, since nobody else has responded to this nonsense, I suppose I will reiterate my previous points, for I fear that newer members to the website might read your dribble and think it has some merit. 

1) You do not own a property by putting it under contract. A contract is an agreement between a seller to sell the property and a buyer to buy it at a certain price in a certain time frame. No more, no less. Until you execute the contract (ie: Close & Convey Title) you have a piece of paper and a promise. It doesn't matter if you single close, double close, or triple close. Your entire theory is flawed because under no circumstance do you "own" the property until the contract is executed - this is why people are getting into trouble. 

2) You can not advertise a property that you do not own without being considered a broker. That's the definition of brokering without a license. Clearly, you are breaking the law. I don't care, but don't want you to lead others down that path. You even called the Ohio Board and they told you the same thing, you are in denial.

3) It is clear that you are not an attorney. I firmly agree on this point. You need to consult one as soon as possible so they can explain the finer points of wholesaling to you, especially in Ohio.

4) In no situation above have you acted as a principal, you need to own the property to be a principal. See point #1.

In closing, this website is devoted to helping people become better investors. It is so the new people can learn from the experiences that those of us who came before them have learned. You are welcome to ask any questions you want here and we will do our best to answer them with the best information we have, but please don't ask a question then tell us we're wrong when you don't get the answer you want. It is insulting and detrimental to the people who are here to learn.

-Christopher