New Wholesaler in NJ
I've been doing a lot of research and it seems like wholesaling makes the most sense for me to get into the investing game. I've been on the outside looking in for a few years now and I need to get my foot in the door. Before I start building my buyer's list I have a few questions that I haven't been able to find answers to and maybe someone here can help.
There has been a lot of discussion on here about the strategy being illegal, and while I've read a lot of it, no one seems to have a clear answer. I plan to contact an attorney, but what specific questions and topics should I bring up with them?
Do I need to contact a CPA before starting?
Is an LLC necessary before I find my first deal? If so, what are the cheapest options?
Where do I get the contracts that will be used in the deals? Do they need to be written up from scratch or can I just find them online somewhere and print them out?
Thanks for taking the time to read this. Hope somebody can provide some insight.
Most Popular Reply
Hi Chris Rusoff
There is nothing illegal about wholesaling You are a essentially an off market real estate agent, in the sense that you are selling a property for someone else. When you get your off market deal under contract you are now a buyer of that property and have equitable interest in the deal. This is what gives you the ability to find someone to take your place as Buyer. When you find a buyer to take your place you are merely assigning the contract to them. You could also purchase the property by adding your buyer to the deal. They fund the deal and buy it and then you do a quit claim deed to get them solely on the title, getting your fee at the same time. The reason it is perceived as illegal is because people forget to fully disclose that they are selling the deal to someone else. If everyone is not aware that is when things become complicated. So make sure everyone knows what is going on and you will be perfectly fine. The other thing is to get in contact with your lawyer and have them draw all of your standard contract for purchase of real estate with assigning of the contract as an option.
The other thing to understand when wholesaling is construction costs, the biggest thing a lot of wholesalers forget is to correctly assess the property.
Hope all this helps,
William Lees Jr