Wholesale Oregon Basics

[Luke Lesh]

All-I've flipped properties a few years ago in Oregon and I'd like to take a turn at wholesaling.  My wife is a new broker and though we've been researching the details, our core questions are-Is it legal in Oregon if you aren't a broker and do we need to keep the two entities separate?  What is the best way to develop the best contracts?  Why should or shouldn't I move forward?  Any feedback would be appreciated.  Thank you!-Luke

[Jay Hinrichs]

Originally posted by @Benjamin Ulloa:

@Luke Lesh yes it’s legal if you’re not a broker. I’m an agent and investor and have bought properties from wholesalers with and without their license

not correct  see below from the state of Oregon real estate investigator.

the way wholesaling is taught IE selling contracts or advertising properties you do not own and just have in contract is not legal.

however buying the properties first then reselling is for sure legal I have been doing it for 4 decades.

also in Oregon keep in mind if you doing ANY work on the homes and then selling to the public you need a Developers license , which to get one is simple.. you just need a bond and insurance in the name of the entity that is taking title.. learned this one the hard way with a 5k fine. 

See below an e mail I got from the state of Oregon regarding selling real estate you don't own without a license.

530 Center Street NE, Suite 100, Salem, OR 97301

State of Oregon - Real Estate Agency

Frances Hlawatsch | Financial Investigator

Best regards,

Thank you again for the information, if I have further questions for you during the investigation I will certainly reach out.

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 for getting back to me. The advertising copy you attached to your email came out perfectly and will be very helpful. Thanks!