Wholesaling Course/ Seminar/ Mentor

[Andrew Moullin]

Hey guys!

I was wondering what you thought were the best guys/ courses to invest in to learn the most about Wholesaling?

I have been grinding the last month, now I believe I need someone to coach me through my first deal.

Thanks in advance

Andrew

[Don Konipol]

Originally posted by @James Wise:

Originally posted by @Don Konipol:

@James Wise

While what you say is true 85-95% of the time, there are some legit unlicensed wholesalers out there that are upfront in informing the seller about what they do. I believe that wholesaling May be appropriate in the following situations

1. The seller needs a very fast close and the wholesaler has a cash buyer lined up

2. The property is in an area that brokers won’t actively market

3. The property is in a price range too low for a broker to bother with

4. The property is so unique that it has spent years on MLS unsold

5. The property needs such extensive rehab, or is in unsafe condition, that only investors would be interested.

So, I’m going to tell you that I have actually provided financing in situations where wholesalers were able to complete deals after brokers couldn’t sell the property. For your average everyday property, and most wanna be wholesalers, I agree with you. But again, there are exceptions that need to be acknowledged.

 The situations described above are still by definition brokering real estate. One needs to have a license to legally broker real estate in this country.

Actually, the definition of what's brokering real estate is state specific, and differs state by state.  It's also subject to judicial interpretation by the courts of that state.  but my point is not whether wholesaling may or may not violate a particular real estate commission regulation - its whether there are circumstances where it provides value and benefit to the property owner.

Much of the laws and regs regarding license requirements as to wholesaling rely on INTENT.  Under commercial law of ALL states, it is legal and not a violation of state law to place a property under contract and sell that contract (or more specifically the rights in that contract) to a third party.  The various real estate commissions look at intent to close, if wholesaling and flipping the contract constitutes a pattern, etc. to determine if they have grounds for enforcement action regarding licensing requirements.

I have held brokers licenses in five states, and am currently licensed in 3.  I can tell you that the commission's interpretations of what constitutes an action requiring a real estate license keeps changing, as court cases test interpretations and enforcement.  In many cases two attorneys well versed in real estate agency law will differ on opinions as to the same set of circumstances; further minor differences in circumstances will result in different decisions.  Bottom line is that this issue is nowhere as clear cut as you believe.

I can share with you my own conclusions.  The reason the states have so much trouble enforcing real estate 'wholesaling' as brokering requiring a license stems from the way the original licensing laws were written.  Brokering real estate was interpreted to being an 'agent' of the principal.  Laws and regulations were enacted to license and regulated people acting as agents for real property buyers and sellers.  Wholesalers, as the term is commonly used, do not represent buyers or sellers as agents.  They represent themselves as principals in a transaction.  Expanding the licensing requirements to people not acting as agents requires either a much  broader definition of 'agent', or changing the law regarding licensing to include some principals acting in their own interest.  Neither is clear cut nor easily enforced.

I realize that a lot of conventional advise is that wholesalers should just bite the bullet and get licensed.  However, for the wholesaler this may have a significant downside.  As a licensed agent he, or she, will incur more potential liability in a transaction, and owe a duty to the seller greater than if acting as a principal.  As a practical matter the wholesaler is much more likely to be sued by a disgruntled seller who may have sold too low if he finds out the buyer has a real estate license.

The above should in no way suggest to anyone that I support most wholesalers and the ways they operate.  The inexperienced, unknown;ledgable, as well as the dishonest, or misleading wholesalers, which I am afraid represent the majority out their, can and do great financial damage to home owners often in desperate situations who can ill afford to incur losses.  But to blame all wholesalers is the same as blaming all subject to buyers because many will default at the first sign of problems and ruin the sellers credit.  When done correctly, and honestly, both wholesaling and subject to can help home owners who may not be of interest to brokers.