Ohio Wholesale Deal

[Josh Childers]

I've recently moved from Texas to Ohio and currently working on the paperwork for my first wholesale deal in Dayton, OH. I'm licensed in the state and know that disclosure is absolutely neccessary. With that being said, the representation disclosure form in Ohio states who I represent in the transaction. Therefore, when signing the contract I represent myself as the  buyer, however, after assigning the contract I have ownership interest as the seller? Therefor I'm representing myself as the seller. I'm curious as to how to fill out the disclosure form and stait my interest in the transaction. Because I don't want to be responsible for representing the seller or the end buyer in which I pass my interest on to. Any suggestions on disclosing my interest in the transaction from a realtor/wholesaler side of things?

[Matt Motil]

The Division is very clear on wholesaling, but that being said, there's nothing they really can do about assignment done the correct way. Net listing is an approved selling method in Ohio, so not sure why that's even a discussion. If a seller understands that they are selling their house at a discount and signs off on it, then they are within their rights to do so. 

The issue arrises when sellers are not informed, are made to think their house is dramatically under market and agree to sell thinking this is their only option. In some cases this is true, in other cases they are being taken advantage of. I have recently dealt with a number of wholesalers in Ohio that do not have a clue what they are doing, are not running their operations like a business, aren't in a position to even be putting properties under contract, and in one case were not even legally able to conduct business in this country. 

What irritates me about this kind of thing is that it takes these homes off the market from people with no intention of buying, gives real estate investors a horrible name, ruins trust and credibility for the seller with dealing with anyone in the future, and makes a huge amount of headaches for those people out there really trying to do it right.