Wholesaling in Ohio

Wholesaling in Ohio

Investor · Columbus, OH · Member since 2020 · 24 posts · 18 votes

Hey everyone - newer BP member here and I look forward to discussing and connecting with you all.

For my first post I figured why not start off with something I know is a hot topic in the wholesaling world...whether or not wholesaling is legal in Ohio....specifically in Columbus, OH (I realize the city doesn’t change the law, this is just my market).

I feel like I’ve read and read and read but still can’t formulate a clear cut answer. My theory after all the research is this, to sum it up quickly; as long as you are not advertising/communicating a “commission” on the property and you are communicating an “assignment fee” than you are legally in the clear. Furthermore, as long as you are not advertising the PROPERTY itself, rather the CONTRACT itself, you are legally in the clear.

Would love to get some feedback from those in the wholesale and BP community in general with any insight on this!

Thanks all and I look forward to chatting.

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Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y

"as long as you are not advertising/communicating a “commission” on the property and you are communicating an “assignment fee” than you are legally in the clear. "

You're going to get wholesalers spending all day long justifying their behavior.  However, I think arranging the sale of real estate in expectation of a fee without a license isn't right or legal.

Crazy idea - How about calling the Ohio REA in Columbus and asking them?

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  • Stephen J DavisBusiness Member
    Rental Property Investor · Houston, TX · Member since 2017 · 529 posts · 467 votes
    6y

    I think you are right but I am not an attorney. Go spend a couple of hundred on an attorney to answer this question. A forum is not the place for legal questions like this. Good luck and if you can't wholesale, move to flipping. Don't give up.

  • Investor · Columbus, OH · Member since 2020 · 24 posts · 18 votes
    6y

    @Stephen J Davis thanks for the feedback Stephen. Certainly would consult an attorney before doing anything myself. I was just curious as to the BP insight on this and if anyone had direct experience and would not take this as legal advice.

    Cheers!

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    6y
    Originally posted by @Account Closed:

    Hey everyone - newer BP member here and I look forward to discussing and connecting with you all.

    For my first post I figured why not start off with something I know is a hot topic in the wholesaling world...whether or not wholesaling is legal in Ohio....specifically in Columbus, OH (I realize the city doesn’t change the law, this is just my market).

    I feel like I’ve read and read and read but still can’t formulate a clear cut answer. My theory after all the research is this, to sum it up quickly; as long as you are not advertising/communicating a “commission” on the property and you are communicating an “assignment fee” than you are legally in the clear. Furthermore, as long as you are not advertising the PROPERTY itself, rather the CONTRACT itself, you are legally in the clear.

    Would love to get some feedback from those in the wholesale and BP community in general with any insight on this!

    Thanks all and I look forward to chatting.

     I would recommend looking at The Ohio Division of Real Estate's website. They have a video on wholesaling on their main page. It clearly outlines what is illegal regarding wholesaling (basically everything). It appears to be like speeding, a lot of people do it but the only ones that get caught are the ones that do it too much)

  • Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    6y

    @Account Closed here is an excellent blog post by @darrin carey

    https://www.biggerpockets.com/...

  • Investor · Columbus, OH · Member since 2020 · 24 posts · 18 votes
    6y

    @Remington Lyman thanks Remington I’ll certainly look into it. I have read through articles and clauses on their site but still no clear cut answer that I can find. Appreciate the help!

  • Investor · Columbus, OH · Member since 2020 · 24 posts · 18 votes
    6y

    @Michael P. wow great article!! Thanks Michael much appreciated. Certainly some interesting takeaways there.

    I do agree with @Remington Lyman in that it is much like speeding and trying not to get caught, but do believe marketing and intent play the largest factors in how the ODRE views wholesalers.

  • Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "as long as you are not advertising/communicating a “commission” on the property and you are communicating an “assignment fee” than you are legally in the clear. "

    You're going to get wholesalers spending all day long justifying their behavior.  However, I think arranging the sale of real estate in expectation of a fee without a license isn't right or legal.

    Crazy idea - How about calling the Ohio REA in Columbus and asking them?

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