All Forum Posts by: Eric Jacobs

Wayne.  I respect your opinion and I generally avoid arguing other than for pay (except with my wife but that's different) but you are mistaken.  First, from a technical legal standpoint (sorry I've been doing this a long time), presumptions are rebuttable meaning that their mere presence does not actually prove anything. Secondly, the statute you cite above presupposes the absence of substantial consideration and that appears to be what you are misreading here. The Florida legislature is known for its less than masterful statutory drafting skills with all due respect but if you look at the preceding sentence which you don't highlight you'll see that the various "devices" which are "otherwise employed to permit an unlicensed person to sell, lease or let real estate...".  If done properly, wholesaling is about selling a contract/ assignment not the sale of real estate.  I likewise have no dog in this fight as I don't really care for wholesaling.  Beyond that, not sure if you are a lawyer or not but if you get two lawyers in a room, you will often find yourself with three opinions.  I'm satisfied my interpretation is beyond opinion and have discussed this matter at some length with counsel at the Florida Division of Real Estate but someone could always disagree.  You know what they say about opinions.  We can just agree to disagree, I'm not trying to convince you :) 

Thanks for the spirited debate.  

While I understand what you are saying I think the ambiguity here comes down to the narrow definition of wholesaling. For a presumption to be imposed, there has to be an absence of substantial consideration.  If someone is for example creating an artifice to get around what they are essentially doing as brokering, that would be a violation of law.  Wholesaling or perhaps more clearly put, putting a property under contract and then selling an assignment is perfectly legal.  We may be disagreeing over different things. There are a lot of "wholesalers" out there.  Some are clearly violating the law, some are clearly not and some are somewhere in the middle.  

They all have their ups and downs. I would just say that if you go to one where you quickly get the vibe the organizer is trying to sell something (i.e. some kind of coaching or get rich quick whatever...) get out of there...meetups should be about networking, sharing opportunities etc...IMHO not about selling your fellow REIA members....if anyone disagrees I'd welcome the input

There’s a lot of “interesting” stuff going on in Canada ... Toronto at least ... 

Personally I don’t do D and F areas.  Having said that I know investors that have made an absolute killing at it.  If you want higher yield and don’t mind high intensity management, there is money to be made there like there is in every other asset class.  The issue is not the property and I wouldn’t be so quick to blame the agent.  Investors too often fail to treat this like a real investment.  They treat their purchase more like a lottery ticket. They often spend more time doing due diligence on a car purchase than they do on a real property purchase.   Newbie or not, people have to understand their model and then invest to that model and not chase yield or appreciation or whatever.  I don’t disagree that the Path of progress is a scam.  It’s objectively not.  If an investor takes a single agent’s advice about where that is...well that’s a problem...

@Jay Hinrichs Developers definitely get presales to satisfy lenders and (they hope) to boost sales.  They often give massive discounts or MFN or other perks to make it happen.  There are a fair amount of “bulk buyers” out there that get big discounts to tie up units which they then break off and sell piece meal below the rack rate but above what they paid making the spread....

I can only speak to Florida where wholesaling is legal despite a lot of bad information on here and elsewhere. I have never personally cared for wholesaling for reasons that are kind of irrelevant but there is nothing illegal about it.  It is NOT brokering under Florida law because by definition you are not engaged in the activity for another person but are doing it presumably for yourself.  There are practices that some wholesalers engage in that may be unlawful but the practice as it in principle should be, is not.  If yo are considering wholesaling just know that you should get legal advice from a lawyer that represents you not a website.  Free advice can be great or it can be worth exactly what you paid for it. 

No .  I generally go to REIAs only when I know someone.  Truthfully, I don’t see a lot down here from wholesalers that I work with that fits my criteria and when I lend, its usually different assets than what might be expected to be common at REIAs.  If I know someone there I usually have a pretty good sense of what type of group it is.   A lot of them are basically pitch fests rather than real networking and I don’t really care for the pitchfest (giving or getting) 

Uh just to be clear, one should not be soliciting or getting legal advice on BP.  Wholesaling is absolutely not illegal in Florida. The question however may be how one defines the particular activity in question.  Putting a property under contract and then "selling" an assignment is not a Chapter 475 Brokerage activity.  It is possible that the activities of a "wholesaler" could run afoul of Chapter 475 but just by virtue of doing it, one is not in violation of Florida law.  The aforementioned is for informational purposes only and is not intended as legal advice.  I'm not going to call out those here who not given accurate information but the key to violating Chapter 475 generally is that you have to be performing the service "for another".  That is not wholesaling.  

You don't wait.  What follows is not intended as legal advice but is for informational purposes only.  Most states have a requirement of a notice and opportunity to cure of some form or fashion. That is their "grace period".  I don't know how the laws work in the state you are in but I know this. Tenants do not tend to pay once they have fallen behind and stay behind without a little "help".  I would urge you to treat your rentals as you imagine a large conglomerate would treat them. That is , there are no stories, or long discussions or explanations about why rent is not paid.  its not paid timely, the appropriate (check your state laws) notice goes.  After the time for cure (assuming there is one) has elapsed.  One of three things will happen. 1. They will pay promptly to end it.  2. They will leave.  3.   They will neither pay promptly nor leave.  Whichever of the three options above, you are better off having that issue come to a head sooner rather than later IMHO.