Wholesaling in Illinois/Missouri

[Jaason White]

Good morning everyone!

I'm trying to get my foot in the door in the real estate game but right now I have limited funding so I've looked into the wholesaling side of things. I've looked into the legality of Illinois and i wanted to make sure my interpretation of the law in Illinois correctly. The Way I understand it you can only do one deal a year if you don't have a broker's license, but if you have a broker's license there's no limit; feel free to correct me if I'm wrong in my interpretation. As far as Missouri I'm looking to move there soon but haven't looked into the laws there so any advice in that area is very welcomed. Thanks in advance!

[Lydia R.]

Hi Jason! So this is a common misconception about wholesaling. Wholesaling itself is not illegal anywhere. The actual method of disposition os the deal is what gets heavily regulated in different states. For example Illinois does not allow non licensed persons to complete more than one assignment deal every year. However there are other ways to dispose of a deal. You can double close it and you can get short term funding to close on the property and then list it on the open market. Both of these are still wholesaling and they are legal. I have heard from some Illinois wholesalers (and saw one of the responders to this post mentioned the same thing) that they partner with real estate agents to do assignments and split the proceeds. This is another way to achieve the same outcome. Obviously you should do your own homework when it comes to the legalities in your area but I just wanted to offer my 2 cents! Hope this helps you!