Student Paid $5400 For "Wholesaling" Class...Is Violating The Law

[John Thedford]

So found a place for sale on CL. Actually a good area and price caught my eye. So I sent the seller an email on it. After a little info back and forth it became apparent they do not own the property. They are also NOT licensed to broker real estate. I  asked him how this is legal and they stated the practice is "wholesaling".  I love these guys...LOL. So, we have been going back and forth a bit more and I asked them how this is legal. They assured me it totally legal. I asked them how I could learn to do this:_)....and they provided the information for the school that "teaches" it. I could not help but call and find out all the goody details. For ONLY $5400 you can get the instructions how to broker real estate without a license!  Now, the unlicensed broker is in for a little surprise. I have posted this a hundred times:
475.42-brokering without a license is a 3rd degree felony in FL.
475.43-using contracts as a scheme or device to broker real estate is not legal.
Brokering is the following--
A BAR SALE
Advertising
Buying
Appraising
Renting
Selling
Auctioning
Leasing
Exchanging
FOR ANOTHER...so...this gentleman, even though believing he is doing stuff legally, is violating FL law. That $5400 is GONE...and what he was taught is NOT the LEGAL way to "wholesale" in FL. It may work in other states but NOT here.
There are TWO WAYS to legally "wholesale"
1. own it and resell (some guys call this flipping)
2. be licensed as an agent (which allows one to represent others)
This guy paid $5400 for BAD INFORMATION. His name will be appearing on the unlicensed activity records of the state in the near future. Schools and education are great but make sure the people teaching you know what they are talking about. This student has NO CLUE...but he will be getting a FREE education from the State of Florida:):):)

[Jerome K.]

While these posts may be repetitive, it does not make them any less accurate.  I think it's important to share these stories along with the successful "wholesaler" stories out there.  People should be aware of both sides of the business (success and conflict) before jumping into certain activities.  I can certainly understand the appeal that wholesaling has on people, and thus the strong emotional support that it brings.  Nonetheless, it still makes the activity in Florida illegal.