Wholesaler Crackdown

[Davit Gharibyan]

Hello, does anyone know if Minnesota is wholesaler friendly state. I read in a blog post that some states are cracking down on wholesalers.

Any advise is greatly appreciated.

[Brian Gibbons]

if you want to do well in Wholesaling do the following:

Understand that you've got to find rehabbers and find out what they want; go to REIA's and have a sheet of paper that you can fill out to know exactly what they want; I have a questionnaire if you want to contact me.

Secondly you need to learn how to price a job, which is not the easiest thing to do; The best way to do that is to go to BiggerPockets resources and order the book " how to price rehabs" @J Scott

You only have one chance to impress a rehabber,

if you don't know what a good deal is, you need to learn

Understand your local state laws as far as what an agents activities are and what are their definitions, being a licensed agent, especially in Florida, California, and Ohio. 

You cannot advertise a house for sale that you do not own. 

You can advertise you have a contract for sale.

Get a sale and purchase agreement that can be legally assigned and sold for an 1 to 2% assignment fee

If you don't want the rehabber to know how much you paid for it, find transactional funding or get on title somehow with private lender funding or find a joint venture partner to provide funding or get on title with Hardmoney lender funding so that you can buy at first and then resell it.

Illegal Wholesaling only means that you're not telling the truth to the seller, and you have no intention of ever buying it, hence the reasons for all of this loud noise about illegal wholesaling.

Wholesaling is legal in every state as long as you follow good business practices.

@Jay Hinrichs

@Bill Gulley