Wholesaling in Florida Without Real Estate License

[Alejandro Perez]

Hi, I'm relatively new to REI and was reading up on concerns about wholesaling without a real estate license and being brought to court for brokering real estate without a license since technically we don't typically close nor transfer title under our name when we wholesale.

My question is, can we / should we do a double close or subject to in order to acquire title therefore not broker rather just selling our property even if its bought and sold the same day to avoid the risk of being brought to court for brokering without a license?  Or maybe an affidavit of equitable interest, and if so would this even protect non real estate licensees while wholesaling?  I recently heard if we hold an equitable interest we can wholesale without a license and not worry because we hold equitable interest...not sure this will stick though.

Thank You

[Jay Hinrichs]

I asked the state of Oregon this question and this was the answer pretty much every state has the same laws on the books.. its just up to each state how or if they will enforce them.. the equitable interest theory is just that.. does not hold up if your taken to the matt.

what does work is the sub too come into title and resell that works..

this regulator went on to tell me on the phone that double closings they see as prima facia evidence of selling real estate without a license IE they see one party come into title and flip same day they then make the assumption that they had to market the property they did not own to some buyer in some manner IE e mail blast craigs list etc.. and she went on to say that they see it as some sort of fraud now I did not get that.. but I asked her specifically because I have been a party to these transactional and will no longer do them.

I am thinking where this is all going is you come into title THEN you market.. if you have to hold for 30 to 90 days so be it..

But to each his own.. on how they want to risk the rules and a state that may or may not follow up on un licensed activity as you can see my state will only do something if there is a complaint filed.. but once one is they will actively and aggressively put the fire out.. One of my bird dogs who now works with me as a JV got wrung up for putting a for sale sign in a yard of a home he did not own.. neighbor wanted the house knew my guy did not own it filed complaint.. and its much like getting a DUI cost him about 15k when all said and done.

this is the response I got from the state like I Said I got tired of all the Is this legal is this not and the last thing I am going to do is listen to a lawyer on this stuff its not their money when your wrung up they make it defending you.

"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