Wholesaling in Germany

[Moritz Fischer]

Hey, 
my name is Moritz Fischer I am from germany and new at BiggerPockets and in real estate. At first of all sorry for my bad english!
so i have read the ultimate beginners guide and i am interested in wholesaling.
So maybe this question is kinda stupid. But is there any possibility to use wholesaling real estate in germany? is it even legal in germany? I ask this cause i cant find any information about Wholesaling in the german language and wholesaling isnt even mentioned on the most german real estate website i have visited so i cause of that I am a bit confused if it is even possible to use the Wholesale strategy in germany. I would be happy if someone can help me out! 

Thanks for helping! 
regards 

[Ken Breeze]

@Moritz Fischer wholesaling doesn't exsist in Germany due to laws and tax-regulations. A double closing for instance wouldn't be practical since capital gains and a property tax (6% of sales price) are immediatly due - twice. An immediate deal breaker. That's how regulations have made it impossible to drive up prices and hinder speculation. The people call it "Spekulationsteuer" vor a reason. 

Imagine how dramatically real estate would drop in the US if our beloved 1031 exchange tax regulation would be eliminated - devastating. Well, that's exactly how it's been in Europe and one of the reasons why it's by far less lucrative compared to the US. If you sell real estate before 12 years, you pay 25% capital gains, rendering any deal impossible. This is why real estate, as we know or hear about from the USA, is only a dream in Europe. 

This is also one of the many reasons why you don't see the common man significantly involved in RE in Europe trying to generate any wealth worth mentioning. This is only possible for high networth individuals and institutions with the capital- and staying power to invest and last longer than 12 years.

This was just a brief journey into cultures that defy wealth creation from the bottom up. But getting back to your initial thought, all this doesn't mean you can't make a commission as a broker. You will need a broker's licence which anyone can apply for (Gewerbeordnung 34c). They do a financial and background-check to make sure you will pay taxes.

But ask yourself, is this really a fun, scalable, and lucrative real estate business strategy to get into? How many deals can you close in a month? Exactly. That's not getting yourself out of the "Rat Race". 

Focus on what you can learn now here on a Bigger Pockets, and I mean like every book, podcast and blog teaching you everything RE, and then, as you progress during the coming two years, build teams and apply that knowledge from Germany in the USA to get your RE carreer started.

See you on the other side ;-)