All Forum Posts by: Matthew J. T.

I see people all the time wholesaling properties on craigslist advertised as "Handyman special". She did have an open mind, she just said she would be careful, because I don't have a licence, even though I have no interest selling a property, I just have interest marketing my contract to a person who does want to buy the property.

I told her this earlier

"Wholesaling is merely selling your interest to buy a property you've secured under contract. That is completely different that acting as a broker to market the property, so it is misunderstood. I've done extensive research on this for a long time, selling houses is different from selling your interest to somebody trust me."

She told me this.

"I believe that any advertising or marketing of the property by you prior to closing may be construed as activities restricted to licensed real estate brokers. If you proceed with the advertising language in your purchase agreement, you proceed at your own risk. I suppose you may consult with another attorney and perhaps you will obtain a different opinion. I am not going to say that it is o.k. if I believe there are risks. "

I didnt want to spend the time arguing with her back and fourth lol

She said I can assign, and my contract was fine, she did a few tweaks here and there, but other than that she says I couldn't advertise a property under contract? How does it make sense to be ok to assign, but not find somebody to "assign" to? That's the whole point of assigning! IS to find someone through marketing to buy.

Even though I explained to her that I am not acting as a broker and selling houses I am selling my interest.

She is official though, check out her crudentials : http://www.505-888-8888.com/DynamicAttorneys.shtml?wldpid=3725579_1&mailpagename=ObfuscatedForm&p=yes

Stinson,

That was an attorney that told me that, I already have a title company that works with investors. What I am saying is she seemed to think that when you wholesale a deal, and have it under contract, that you are not aloud to advertise it (like on craigslist, or through MLS) all because you are not "licensed" to be a broker, I explained to her that :

""Real Estate Agents have a license to sell real estate because according to the law you need a license to sell real estate. Wholesalers do not need a license because they are not selling real estate they are selling their rights to a certain real estate property."

She did not seem to understand.

Matt

I tried to explain to my attorney, that I am not selling houses, I am selling my interest, she seemed to not understand the difference.

I told her this: ( i took a quote from what somebody said on here on BP for clarification purposes )

"I think there is some confusion, my question is as far as marketing it to an end buyer When you have a contract to purchase you have an equitable interest. That is what keeps it legal when you are marketing the property for an end buyer. Here's what I read on it "Simply put, your purchase contract with the owner of record gives you equitable interest in the property, which allows you to market the property as if you were the owner of record. This issue has been flown up the court ladders and they all agree that wholesaling property is not illegal. Alot of real estate agents just don't understand the wholesaling process...trust me, I used to be one." I am not going to be representing anybody, just my interest in the property.

Check out this article, it sums it up well.

"Real Estate Agents have a license to sell real estate because according to the law you need a license to sell real estate. Wholesalers do not need a license because they are not selling real estate they are selling their rights to a certain real estate property. Because contract rights are considered property, they can be transferred to others just like a piece of property such as a home or car."

http://www.realwholesaling.com/we-buy-houses/realtor-or-wholesaler-whats-the-difference "

This is what she told me

"Matthew:

I did not say the contract was not assignable. I believe that any advertising or marketing of the property by you prior to closing may be construed as activities restricted to licensed real estate brokers. If you proceed with the advertising language in your purchase agreement, you proceed at your own risk. I suppose you may consult with another attorney and perhaps you will obtain a different opinion. I am not going to say that it is o.k. if I believe there are risks. "

lol your thoughts?

I got told this via e-mail

"As we discussed, I have revised your agreements to provide that the sale is contingent on clear title and that you are satisfied with the condition of the property. Due to the fact that you are not a licensed real estate broker, I removed the right to advertise and show property to others because these actions are reserved for real estate brokers under state law. However, once the property is owned by you, you are free to advertise and show your property in New Mexico without a real estate license. "

So what does that mean?

By the way she said that it is assignable.

Thank you for the example Bryan, it's good to get an idea.

I just spoke with my real estate attorney, she said the contract is fine that I currently have, however she said that it would probably be necessary to change this that I have in the contract. How do you go about advertising a property under contract, through craigslist, or through flat fee if the property doesn't actually belong to anyone just yet?

She said if I advertise a property I have under contract, I am acting as a broker, and Associate of Brokers might come after me, that you have to be licenced in order to do so, so she said there might be risk involved in advertising? What are your thoughts on this? How do you go about advertising a property if you aren't licenced to do so? I already have a few on my buyers list btw.

Btw she is making some tweaks for some clauses and stuff which is good, glad I could talk to an attorney first.

My question was mixed up, I later figured it out. LOI is more of a preliminary non binding for the rules to agreement prior to the offer. More of an outline between both parties if anything. I understand now, thanks everybody.

Which is the best way to purchase multi-fam?

Thanks for your advice, in this scenario, generally speaking I would base my ARV off of 152k correct?

-Matt