All Forum Posts by: Katie Miller

I appreciate the ones that gave me genuine advice. Today, I talked to a Texas Realtor who doesn't mind working with wholesalers. He was pleasant to me. Such a contrast than some of the ones I interacted with here.

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WOW! I thought Bigger Pockets was for INVESTORS and CREATIVE REAL ESTATE INVESTING, but NO! It's a swamp of Realtors who can't really offer me any advice.

There are big names like AC Ramos out of Houston who is SUPER successful!!! Paul McCommas who made over $26M in only 3 years selling paper, not properties.

I won't be coming here for advice anymore. I have a real bad taste in my mouth when it comes to crab-like mentality.

By the way, I took the Broker exam to get my license. Passed my first attempt, but found out I can make more money without a license than I can with one.

Good day!

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Looks like I'm all good because I do disclose in writing and verbally my equitable interest in the property to both the seller and potential buyer. I have not yet found where it says that I must disclose that in advertisements. Still searching...

Sec. 1101.0045. EQUITABLE INTERESTS IN REAL PROPERTY. (a)
	A person may acquire an option or an interest in a contract to
	purchase real property and then sell or offer to sell the option or
	assign or offer to assign the contract without holding a license
	issued under this chapter if the person:
	(1) does not use the option or contract to purchase to
	engage in real estate brokerage; and
	(2) discloses in writing the nature of the equitable
	interest to any seller or potential buyer.
	(b) A person selling or offering to sell an option or
	assigning or offering to assign an interest in a contract to
	purchase real property without disclosing the nature of that
	interest as provided by Subsection (a)(2) [to a potential buyer] is
	engaging in real estate brokerage.

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Quote from @Rick Albert:

Quote from @Katie Miller:

Quote from @Steve K.:

This doesn't meet the definition of being an investor either. Investors buy, rent, and sell real estate to make a profit. What you're describing is called wholesaling but if you're marketing the property as you said, and not just the contract, then you are really just brokering real estate without a license. Be careful.

I'm selling the contracts, not the property.

The contract is for a property. You have no intention on buying the property. Your intention is to sell the property to someone else and make a profit. More importantly, you are attempting to advertise the property on public forums. On a practical basis, you are attempting to sell real estate without a license. Realtors are also selling contracts. They are selling grant deeds that give ownership to a house.

The "I'm selling the contracts, not the property" has been used for years as a possible loophole. However there was a lawsuit going on earlier this year in South Carolina on this exact issue. Depending on how this goes (and I will admit, I'm behind on it), this could set a precedent for the country.

Steve is right, you need to tread lightly. Typically wholesalers just reach out to their networks, not the general public.

I'm assigning my rights on the agreement to someone else who will purchase the property from the seller. I get paid an assignment fee from the buyer.

1 Vote

Quote from @Steve K.:

Quote from @Katie Miller:

Quote from @Steve K.:

I'm selling the contracts, not the property.

Well your first comment says you're marketing the property, as Steve pointed out above, hence my comment to be careful. If you're marketing the property, then you are acting as a broker without a license. You can be fined up to 3 times your profit from the deal for that. Texas passed some new laws this year about wholesaling. I'd recommend getting familiar with those to make sure you are operating in compliance. Look at the laws themselves directly. There is lots of grey area, lots of bad info online about wholesaling being "completely legal", and many gurus teaching it the wrong way. Here as a recent thread about it from on here with some good info provided by an attorney: https://www.biggerpockets.com/forums/93/topics/1193044-seeki...

"The bottom-line requirements for wholesalers are:

A buyer must disclose to a seller of their intention to wholesale the property;
A buyer must disclose they are selling their equitable interest/contract rights (versus selling the property) in all marketing, advertisements and communications with other parties;"

Hi Steve, I appreciate that information and will research those laws to see how they affect me and the way I'm doing what my mentor, who has over 30 years of experience in creative real estate, is teaching me.

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Quote from @Steve K.:

I'm selling the contracts, not the property.

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Is there a standard termination agreement a seller should use with a realtor in the state of Texas? I found a NOTICE OF SELLER’S TERMINATION OF CONTRACT at https://www.trec.texas.gov/sites/default/files/pdf-forms/50-... but it looks like its between Seller and Buyer. What should a seller use to terminate the agreement with their realtor?

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Austin, Texas

Quote from @Russell Brazil:

Zillow is a real estate brokerage. Therefore they are bound by state real estate licensing laws. That means, if you're marketing a property you don't own, you need to be a licensed real estate salesperson or broker.

I own equity in the property as I paid consideration. I have a 90 day option agreement, so doesn't this mean I can list it as the owner?

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I own equity in the property as I paid consideration. I have a 90 day option agreement, so doesn't this mean I can list it as the owner?

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I have a 90-day option to market a property, but Zillow is requiring that I provide a valid listing agreement showing that I "have exclusive permission from the owner to list the property. The listing agreement must include the following:

* The agreement's valid date (must be signed within the past 30 days)
* Brokerage and agent representing the owner
* Signature from both parties entering the agreement
* Full property address (including the unit number, if applicable)
* Terms stating that you have exclusive permission from the owner to rent/lease the property"

The problem is I am not a realtor or broker. I'm an investor. This is my first deal; I need to list it on Zillow as soon as possible to get buyers.

Does anyone have a listing agreement I can have the seller sign to satisfy Zillow's requirement? My partner told me to try using another Option and a mock Lease Agreement... I don't want to try that if it won't work, and would rather provide a listing agreement instead. All of the listing agreements I've found online are between sellers and realtors, not investors.

Any guidance with this is greatly appreciated!

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All Forum Posts by: Katie Miller

Katie Miller has started 2 posts and replied 10 times.

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Termination Agreement with Realtor

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement

Post: Zillow Requires A Valid Listing Agreement