NJ Wholesaling w/o license

[Hannah Canario]

Hello!

I recently moved to NJ from NYC and had to leave my job in the city so I started thinking about pursuing opportunities in real estate. I'm having a hard time convincing my husband(he doesn't like to take risks at all) to let me take a real estate course and become a licensed agent. 

So, I want to secure a wholesale deal to not only raise funds to get my license, but show him that it's also possible to achieve success in real estate. 

What are some things I can and cannot do as a wholesaler in NJ without a real estate license? Is it still possible to execute successful deals?

[Chris Piper]

You're welcome @Hannah Canario. There aren't any risks per se to being a wholesaler. If your husband is worried about you getting sued being a wholesaler, I would suggest you form an LLC. Definitely not necessary, but if it makes him feel better then why not. I would also suggest if you do form an LLC such as Canario Investments LLC, that you incorporate in either Deleware or Neveada where they don't collect ANY corporate taxes. You don't need to live in a state to incorporate there. You just need a registered agent acting on your behalf. If you go through Inc Now(I have used them and would recommend them), It's around $250, and includes a registered agent in the state of incorporation for one year. Then it's around $100 per year for the agent.

Back to the risks of wholesaling. As I said, there aren't any really. Here are some minor risks, but I wouldn't really call them risks. 1. You put a property under contract and can't sell it by the closing date. It sucks, but it happens. As long as you put contingencies to allow you to back out of a deal, then it's no problem. You want to make sure you figure out all the numbers on a property before making an offer to make sure it's a good deal. I wouldn't recommend making a habit out of backing out of deals, or no one will take you seriously as a wholesaler. The numbers are VERY important to know before putting a deal under contract and to know your MPP(max purchase price). Cash buyers will not take you seriously if you estimate repairs at $10K on a deal and they turn out to be $30K. 2. A cash buyer goes around you and cuts you out of a deal. Again, it sucks but it does happen. In that case, you simply never work with that buyer again. 

Other than that, keep in mind to start wholesaling, you need deals. You need motivate sellers blowing up your phone begging you to take their house. If they're not motivated, then you do not want to work with them. You'll only get great deals by working with motivated sellers who will sell to you at deeply discounted prices because of whatever situation they are in. Bandit signs work well for cash buyers and motivated sellers. Also, to find HOT markets where cash buyers are buying, check out my post https://www.biggerpockets.com/forums/93/topics/249804-this-is-how-to-find-the-hot-markets-in-your-area-for-free. Some people think it's better to build a buyer's list first, then get deals under contract. It's kind of a catch 22. In the end, you need deals first to get moving. Regardless, you should always be looking for motivated sellers, and cash buyers. Once you start building a buyer's list, when you get a deal under contact, you just email your buyers, and wait for the phone to ring. If you have any other questions, let me know.