Questions about wholesaling in Oregon

[Thomas Nagel]

Hello, I was hoping that someone might be able to answer a couple questions about wholesaling in Oregon for me. I'm just starting out. In fact I haven't even done my first deal yet. So, here it goes. I've heard numbers ranging from $100.00 to $1000.00 when it comes to an earnest money deposit. I was hoping someone local to my area might be able to let me know what they've encountered in this department. Also I was curious about assignment of contract. When you sign with the realtor do you sign with "and/or assigns" after your name? Or is this something you wait to do until you find someone to take over the contract? Or am I just completely wrong about how that works all together? I obviously need some help here. If anybody can shine some light on these two questions, I would greatly appreciate it. 

[Jay Hinrichs]

@Omid A.  I finally got tired of is wholesaling the way all you guys do it legal or not..

IE tie up a home and flip the contract.. or assign it..

here is the response I got from the DRE on March 15th of this year.

"The Agency is well aware that unlicensed “wholesalers” are rampant in our jurisdiction. Addressing the problems is like trying to put out small individual fires in a forest that is burning. The Agency’s investigations are complaint driven, so we rely heavily on the public, and our licensees to bring these individuals to our attention.

Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.

Best regards,

Frances Hlawatsch | Financial Investigator

State of Oregon - Real Estate Agency

So I know 2 wholesalers that have gotten wrung up for selling without a license. which is like getting a DUI  about 10 to 15k by the time you pay fine and legal.

I went on to Ask Ms. Frances about transactional funding because I have personally done a lot of that for wholesalers over the years.. and she went on to say that is not legal either for the wholesaler her point was the Agency is going to take the position that the wholesaler came into title in the morning and out in the evening and its a scheme to circumvent the license laws as well .. the thought that they still had to advertise in some form a property they did not own.

So to me its clear to be in the home flipping business in OREGON and do it legally you need to close and hold for more than a minute or a day..

But as she says its complaint driven.. so if I was doing this I would not piss off any agents.. or the public.