All Forum Posts by: Account Closed

Sellers can sell their homes without using a real estate agent in Wisconsin. 

Wholesaling is NOT contract assignment by (actual) definition. 

Equitable Conversion is real. 

It's best to just get a license. 

The intent and ability to close do validate a contract, and I'm saying that if it was brought to a real estate litigator. 

People, learn the rules and stop brokering illegally. 

Best of Luck, 

If people actually understood the verbiage and didn't have all this BS guru information floating around I wouldn't have to make posts like this. Learn the difference between Wholesaling and contract assignment no where on earth is is illegal to buy and sell real estate. 

Brokering without a license happens when you have no intent to CLOSE on the property, please do not jump on my post and make idiotic statement when it's clear you don't understand basic definitions. 

Pick up a dictionary and look up the word wholesale, do your research on binding contacts then come back with a valid argument. 

As far as most Wholesalers being evil or stealing equity I'm not sure about that because I don't know every wholesaler in America. 

Please learn the laws and verbiage before you jump on BiggerPockets and make a fool of yourself. 

Best of luck, 

@Andrew Michael, 

Wholesaling is when you buy and sell real estate at a discount, assignment of contract is not Wholesaling by actual definition. 

Nothing I said was misleading I clearly give newbies a way to actually Wholesale legally and ethically. 

Take a contract to a judge and ask them what validates it. 

I don't see the purpose of your comments, my information is 100% factual. I'm teaching people how to not broker illegally. 

Nice try. 

If you're serious about the business PM me, I won't charge a dime. 

Didn't mean to answer "yes" to the needing a license part, you do not need a license to work with probate properties. Everything is the same except the situation. 

Understood. It's illegal for them to back out of a binding contract if they signed it but going through litigation is expensive and timely. 

If your buyers already have a number they're willing to pay on that particular property you can cancel the contract, use an option contract which allows them (the seller) to still market the property for a higher price but also gives you a timeline to assign or close and resell at a specific price.

If they're aware of all the costs associated with selling on their own or with a realtor as well as the timeline, the benefits working with an investor offers and still want a higher price you have an unmotivated seller. 

Before you lock anything up under contract you should have a network of buyers, knowledge of their buying criteria and a transactional lender or JV part with cash to close on your team.

Locking up a deal and hoping you can sell it isn't a good idea if you're planning on staying in this business a long time. 

The question you asked could be easily answered if you have buyers lined up who's purchase criteria include duplexes in D class neighborhoods. 

I wish I had I more colorful answer but I don't, truth is, you want to be speaking to as many sellers, agents, investors and lenders (private/traditional) as you can on a daily basis.

You also want to learn what a good deal looks like in your target market and analyze 100 deals as quick as possible so that when you're ready to pull the trigger on an investment you can do it with full confidence. 

Becoming financially independent probably won't be that difficult for you with your business experience, real estate is the way to go. 

Best of luck, 

Not sure how it got to that point but I usually see things like this happen when the investor doesn't take time to weed out all the decision makers and/or fail to align the benefits of their offer with the seller's pain points (motivation) in an easy to understand way. 

Another possibility is that they weren't that motivated to begin with, there needs to be a pressing issue.

I've dealt with sellers that backed out last second because I didn't follow a consultative selling process. I've also dealt with sellers so motivated they didn't care what I offered as long as they received enough cash at closing for a down payment on a new home. 

Don't have enough detail to go any deeper than that. 

I want to start by saying: WHOLESALING IS NOT ILLEGAL. 

Wholesaling is buying a property at a discount and selling it to an investor or anyone who isn't the end user. 

I'll address a few common questions and misconceptions: 

1. What makes a contract valid and the "cash buyer" claim; 

A binding real estate contract is only valid if you have the intent and ability to close. All this means is you need to line up a transactional lender, private investors or even JV with an investor (acting on your on behalf as it relates to the joint venture). If this sounds too hard for you maybe Wholesaling isn't for you..

Marketing to sellers saying you're a "Cash Buyer" when you have no access to capital is considered fraudulent... Because it is. 

If you have a transactional lender on your team, which you should, you can simply put a financing contingency in your contract, instead of misleading sellers. Some may think this will kill the deal for them, after all as a Wholesaler your value proposition to sellers is a quick cash close, I'm here to tell if you position yourself as a professional, build rapport and go into the transaction looking to truly help the seller they're not going to care. Always discuss the problem and solution before the mechanics of the deal.

2. Marketing a property you do not have title to; 

Some (most) states have a rule called "Equitable Conversion", what this means is that when you and the seller enter into a binding contract you have the legal right to market the property any way you want BEFORE you close. So many people preach real estate law and don't know the actual rules, before you listen to anyone, even me, have that person produce documents or web articles of some kind to validate what they have told you (PM me if interested). Aligning yourself with some sort of money partner allows you to legally exercise this right, because you'll be closing before you resell (intent and ability). 

4. Assignments; 

I believe assignments were put into contracts to protect all parties involved in a real estate transaction. It allows the buyer to transfer his or her rights to another party incase they encounter difficulties that cause them to not be able to close and fulfill their contractual obligations, it's actually genius if you ask me. 

There's nothing wrong with an assignment, things happen in real life. The problem occurs when people only intend to assign but advertise and consult with the seller as if they intend and have the ability to close, re-read that. 

5. Brokering without a license;

If you're acting on your own behalf in a transaction you are not brokering without a license. Acting on your own behalf means you're not negotiating for anyone but yourself and that you have equitable interest in the property, become a principal in the transaction by use of a valid contract and never play middle man

I hope I helped, if I missed anything feel free to comment or PM me. 

Positivity only, I will not tolerate any form of disrespect on my post.