Wholesale closing transactions

[Steven Matthew feliciano]

Hello everyone on BP! So I recently just started up my career in wholesaling down in south Florida. And yesterday morning I managed to come to an agreement on an offer with a seller. I explained to the seller how the contract works and he agreed to sign. 1 day prior to this event, I emailed an escrow, title company that does a lot of work with a local real estate wholesale company called BREIA. In the email I stated that I was looking for a reliable escrow, title company I could bring business to. The owner of the company replied to me after I negotiated with my seller and informed me that in order for a wholesale transaction to legally take place I first have to close contract A with my own money, a lender, or transactional funds before I can close my assignment contract. To my understanding this is considered a “Double close” am I right? Is closing simultaneously ilegall? Can anyone refer me to another escrow service I. South Florida?

[Brian Garrett]

Wholesaling in FL is only legal if you are licensed or you own the contract/property.

I'm sure @John Thedford will come chime in with more specifics and details for you.

[John Thedford]

Using assignment contracts to broker is not legal. NOR IS advertising properties you do not own. The reason is, assigning contracts means you are BRINGING A BUYER. A BAR SALE is the acronym for brokerage activities:
Advertising
Buying
Appraising
Renting
Selling
Auctioning
Leasing
Exchanging
FOR ANOTHER...and you ARE selling for another if you assign. If you cannot assign, you cannot SELL the property for the owner. Assignment clauses were NEVER intended so people can broker without a license. Look at the people that put properties under contract and then advertise and/or show them. If they are not licensed, the are BROKERING WITHOUT A LICENSE. Closing and then advertising the properties is fine because you are selling property you own.  I report every person that emails me "deals" they do not own and they end up with a cease and desist from the state.

[Roland Paicely]

Steven, you’ll probably get the same answer from anyone that contributes to this post. @Brian Garrett is exactly right.