Heads Up Ohio Wholesalers! Potential NEW Legal Ramifications of Wholesaling

[Suzette West]

The other day, I had an interesting conversation with the executive director of the Ohio Department of Commerce. He had called me in response to a complaint I filed against a broker who asked me not to make any offers on any more of her properties in the future. It was apparent that she either does not like--or does not understand--the business of wholesaling. Anyway, the complaint earned me a call from the director who told me that his department is actively pursuing wholesalers in Ohio who are not licensed to "market properties that they do not own." In other words, even though there is a purchase and sale agreement, a wholesaler needs to have a real estate license in order to market the property during the inspection period. Insane!

He called it "unlicensed activity." The funny thing is when I asked him about marketing the contract--as oppose to the property--he never responded.

Anyway, just take this as a heads up that Ohio is not playing nice. They are investigating and fining unlicensed wholesalers $1,000.00 per day per violation.

It's very sad , but true that people tend to fear what they do not understand. I wonder if wholesalers in other industries experience the same type of static?

Take care out there.