Real Estate license for wholesaling in OKC,OK?

Question

Ron Harris · Answer

Oh, the other commonly taught is: It is illegal to sell real estate without a license (in Oklahoma) unless:

• It is your own property (For sale by owner or your rentals)
• You are an attorney
• You have an "equitable interest" in the property (Assignable Clause as a wholesaler)
• You work for a company that owns the property (think home builders or investment company)

There are always exceptions and other factors so you may want to seek attorney advice (I am not an attorney or legal advice).

Other things to think about: If you are licensed, you'll need permission from your broker to wholesale. You will most likely need to fully disclose that you are an agent/Realtor and your intent to wholesale vs. acting as an agent.

We vetted this out in full with OREC (Oklahoma Real Estate Commission) to allow wholesaler into our real estate brokerage. There is a proper way to do it and it's all about disclosure and doing it correctly.

Hope that helps!

Ron

Ron Harris · Answer

This is from a previous post about wholesalers: I just copy/paste it here.There are good and bad wholesalers in Oklahoma. Most of the high-volume wholesalers are getting a premium for their deals and sometimes they are buying them and "wholetailing" them.

The market will change with the housing bubble and wholesalers will be less valuable as bank own properties "REO's" will be the low hanging fruit, per the investor buyer perspective (just like what happened in 2008). One of the reasons we are teaching our agents to be ready for the change.

Wholesaling in OKC isn't illegal if you use the correct language in your contract "and/or assigns" on the buyer line. I am not a legal advisor and you should seek advice from your attorney...just in case.

OREC Oklahoma Real Estate Commission is looking into the possibilities of making Wholesaling a licensable activity. I won't go into it much here since it'll be 10,000 words long, ha. It's been tabled recently but it is in the future discussions. Agents are going nuts over this!

• Check out local wholesalers Speeedy House buyers (some of my past students).
• Best to come to the LOCAL REIA and meet active wholesalers. Millionaire Possibilities is a great place to meet experienced investors.
• Plenty of Meetups with all levels of experience. Meetup.com

Hope that helps.

Ron

Karen Rittenhouse · Answer

Hi @Alexander Hanna

You do not need a license to wholesale if you are buying and selling the property for yourself. It is the same as buying and selling the property you live in - you don't need a license to purchase and sell anything for yourself. The only time you need a license is if you are helping someone else buy and/or sell which is brokering; then you need a borker's license.

And @Cesar Egas said that with a wholesale you are flipping a contract, not a property. That is not true. With wholesaling, you actually purchase a property and close on it just like any other purchase. The difference is that you then resell at a small mark-up without doing repairs to the property. What Cesar was discussing, selling the contract, is called assignment - you assign the contract rather than selling the property. Again, you don't need a license if you are buying the property for yourself, only if you are assisting or brokering for another.

Cesar Egas · Answer

Hi Alexander, I have done a lot of research about wholesaling, think of wholesaling as flipping, but instead of flipping a property you are flipping a contract, you don't need a license to flip a house or wholesale but having one, knowing the laws, having full access to the MLS, and having the option to work as an agent will give you more options and will also save you money when doing this type of deals. To get your license you have to go through a 90 hours course, pass a test at the school where you took the class and then take the estate exam.

Todd Fullerlove · Answer

I’m working on my first wholesale deal in Oklahoma. Could anyone recommend a wholesaling friendly title company with experience and good to work with?

Karen Rittenhouse · Answer

@Cesar Egas

As you know, there are many ways to buy and sell real estate. There is a TON of confusion on bigger pockets about wholesaling / retailing / assigning / wholetaling. They are all legitimate ways to buy and sell, and all very different.

As I said before "flipping a contract" is not wholesaling and causes confusion when discussed that way. "Flipping a contract" is assignment. You can assign a contract when you never close on the property, never go on title. Very different from wholesaling where you do close on the property and go on title.

Alexander Hanna · Answer

@Ron Harris That was very helpful and informational reading!

I want to graduate to buy and hold investing but I feel that learn to buy, sell and finance deals through the medium of wholesaling could be a good avenue. I had run into hiccups of education gaps and uncertainty and your post gives so good avenues to explore.

You may have noticed but I have joined the millionare possibilities, okc entrepreneur group and real estate investing group on meetup.com

I also am planning on attending the failing forward presentation. I would love to get to know you and more people in the group!

Mike Hill · Answer

@Ron Harris Great info, Ron!

Real Estate license for wholesaling in OKC,OK?

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