All Forum Posts by: Chris DeSisto

Market value on a beat up property is not an exact science... Most are using a range of what something is worth. How can that really and honestly be valued? Finding comps on a torn up home gets a decent ballpark figure. If you are adding another layer to the sale (wholesaler) then it's another cost. Just like any other industry. Amazon sells cheaper cause they ship it right to you. Go to Best buy you'll pay more. 

Samething here, if you don't want to pay that fee, go directly to someone who will fix and flip. Skip the wholesaler. There really is no difference. That's why people try to FSBO, they are trying not to pay realtor fees. Same exact thing.

@Irina Belkofer

That is what I am saying though. You don't want to let agents buy their own properties.. I don't see how making someone get a license makes sense then. Insurance won't cover, well how can they possibly force people to get a license knowing most brokers can't or won't let someone do it? They are making it impossible basically. If I want to wholesale, I can't with or without a license? There is no logic to it. It is like saying a person can't FSBO just because I don't want them too....

So your saying even people with a license do bad things, just as an unlicensed person? Adults have to be responsible for their own decisions. Again, nobody is holding a gun to their head to sign. The passing of blame gets old.

Again, I wouldn't try to rip anyone off but who is to say what is a rip-off and what isn't? The vulnerability of the person? They are old, short, fat, pretty, ugly, tall, can't speak English? Who gets to "regulate" and be the almighty ethical person? If you screw someone you will get what's coming to you. Most people inherently know what is right and wrong, unless they are a sociopath. You know if an old person is dealing with dementia, you have to be pretty low to take advantage of someone like that.

I just don't buy into the victim stuff. I'm sure there are cases, but a lot less than what is perceived. 

@Chris Martin 

im sure the insurance and all that gets dicey... But to require something that can't be used is just so short sited. I mean they know insurance will be an issue, then you can't require people to get a license that prevents them from doing exactly what they are told they can do, but can't cause of insurance.

So you can't do this under a broker but you have to do it under a broker... Seriously... I mean how does something like this get passed? If you are required to get a license they should require that the broker has to let you do it.. but you can't because of insurance.

Hence, you probably can't or shouldn't make people get a license. This is what I mean by regulatory bodies screwing things up. 

Make an entire separate License for wholesaling that has it's own ethics and codes or something. A branch of NAR or something.

@Patrik P 

This is America, correct? You can't do that without a license, but once you get that license, you can't do that here... It's a conflict of interest... Wtf! Why do you require me to get a license then?? 

They want it both ways! 

@Patrice Boenzi

Rules about what buying real estate for yourself? You are not representing anyone but yourself. I wouldn't want to be under the E&O insurance. They are trying to tell you you can't buy a good deal cause you have a license? You have to do what's best for a seller, even though you don't represent them? That's why you disclose that you are a realtor and I am not representing you. That's the point isn't it? Telling them I am here to make a profit for myself. So don't rely on me to help you.

Them forcing people to get a license creates a conflict by nature... Good job regulatory bodies!

@Irina Belkofer

If you disclose that you are not representing them, you can wholesale that way. You can buy real estate as a realtor without using your license. Why would it be different this way? Just cause you have a license doesn't obligate you to pay more for a property just cause you have a license. Seems like the real estate commission is trying to have it both ways. There is a conflict of interest in any type of deal and really makes things worse. No matter what transaction in any walk of life, someone wants to pay less and the other wants to be paid more. 

Also, who is to say what is to much in a deal? Is 5k to much? Is 100k to much? Realtor commissions are all negotiable, why wouldn't this be the same? If a wholesaler wants to make 20k per deal, who is to say that is to much? Wholesaling is a different animal because of all the variables. Just seems like a huge can of worms once regulation gets involved. Governments or commissions have so much red tape they make things worse, most of the time.

I've never wholesaled anything but I just don't trust regulatory bodies to make things better. They just seem to react to a small amount of cases and make a blanket 'fix', just like most of Dodd-Frank. The premise might be good but they almost always make things worse.  

@Irina Belkofer

I just believe the "victim" thing happens a lot less than in reality. Everyone is an adult, take responsibility for yourself. Illinois is a very liberal state, so there isn't much in the way of personal responsibility, when it comes to this type of thing. People shouldn't take advantage of others. I just don't think having a license makes someone ethical. They will swindle an old lady with or without it. Makes no difference.

@Irina Belkofer

People just don't want to do the agent thing. Retail is going to be much different than wholesaling. I'm surprised that you have to get a brokers license vs just a real estate license. I would think it will stunt a lot of deals being done, in general.

Wholesaling for a lot of people could be a side thing to make more money. Most people, want to try and get out of the rat race, they hope this gets them there.

@John Thedford

Everyone is a victim... Not saying anyone should take advantage of people. But nobody is holding a gun to anybody's head and telling them to sign. It should be common sense to get a second opinion, if a wholesaler is trying to contract the property for X amount you can bet there is 10 other wholesalers competing for that house too. Which will probably raise the value.

There is a balance of taking responsibility for yourself and someone trying to screw some old lady out of her equity. A license isn't really going to make an unethical person an ethical person.