All Forum Posts by: Shawn Swisher

@Doug Haisten I've watched many of Brandon's webinars and when he talks about going to Realtor.com and searching for deals, he's talking about deals to buy and hold (or possibly flip), but I've never heard him say to use Realtor.com to find wholesale deals. 

I really don't think that strategy is going to work well for you. Any halfway decent investor is going to look a property up online during their due diligence and when they do so, they will find it listed on the MLS via Zillow, Realtor.com, etc. Once they find it and realize they can avoid your fee by buying it straight off the MLS themselves, why would they buy it from you? It just doesn't make sense. While you might get lucky and find a newbie to take advantage of here and there, it won't be a viable long-term strategy.

I think driving for dollars or direct mail would work much better for you. Another option (from Brandon's webinars) is to use Craigslist to search for homes listed for rent by owner. You'll want to look for owners who may be burnt out and ask them if they would consider selling.

Good luck!

@Wendy Schultz You can get licensed in Tennessee for around $500-700, most of that being your pre-licensing education. MLS and Realtor association fees will add on another $800 or so, at least in my area. Your local MLS fees may differ.

@Anthony Hummel Welcome to BP!

I love your goals man! Rich Dad Poor Dad is awesome, I just had my 15 year old read it and my 12 year old is currently reading Rich Dad Poor Dad for Teens. I'm trying to raise them with an eye on financial freedom as opposed to the old "get a good job and work hard" path. 

Here's to your success!!

@Wendy Schultz TREC won't answer legal questions, even when asked by the agents it licenses. They always recommend seeking counsel from a real estate attorney. 

Fair warning: I'm not a real estate attorney and I can only speak specifically for Tennessee as I hold a real estate license there.

The act of bringing buyers and sellers together with the intention of collecting a fee is "brokering" a transaction. Brokering real estate transactions for a fee requires a license in the state of Tennessee. Property owners are exempt from this, which allows folks to sell their own property without needing a license.

I think where the controversy arises is what exactly constitutes ownership? Obviously, being on the deed would qualify you as an owner of the property but what about simply being under contract? The standard Realtor contract in Tennessee is assignable by default but does that make the buyer an owner of the property at the moment they sign the contract? Although they may have an equitable interest in the property, does that qualify them for the owner exemption from licensing? I think most folks would argue no, it does not. 

The argument can further be made that even advertising the sale of the contract (as opposed to advertising the property) is still brokering because you are bringing a buyer and seller together with the full intention of receiving compensation for your efforts. Selling the contract as opposed to selling the property is still soliciting for the exchange of real estate for a fee and that meets the definition of brokering defined by state law.

In my opinion, the safest thing to do if you don't want to get your license is to close first, then advertise and sell the property. Obviously, that requires you to have the financial resources to actually close on the property. However, the upside is it allows you to give potential buyers easier access to inspect the property and allows you to market and sell the property on your own timeline, potentially holding out for a higher price.

Again, this is not legal advice and I can't answer whether wholesaling without a license is illegal in Tennessee. I can say for certain though that wholesaling with a license is perfectly legal. If you want to wholesale with complete certainty, I recommend getting your real estate license.

See Tennessee Law for more info.

@Chaz Allman Welcome to BP! If I were young and starting out, I would definitely consider house hacking. My wife wouldn't go for it now though. Aside from that, you would have more options with the single families over the multis. The multis in Knoxville are few and far between right now. When thinking about financing your first deal, don't forget to check out some of the local credit unions. They are often more flexible with their terms. I know one that's offering 5% down right now with no PMI so check around.

@Christopher B. There are A LOT of agents that don't enter A LOT of things accurately on the MLS. New construction is one of my pet peeves. I see listings all the time labeled as "New Construction: Under Roof" only to find out they were built in 1978 but they just had a new roof installed. Haha!

Hi Mike, welcome to BP! 

Hi Cody, welcome to BP! The podcasts and webinars are all great, as are these forums. If you don't have a lot of funds to start investing, I recommend reading the No (and Low) Money Down book by @Brandon Turner. It will open your eyes to all the different possibilities of funding deals. You can find it in the BP store or on Amazon. Here's to your success!

No, it would NOT be worth it for one transaction.

Looks great, here's to a quick sale!

Thanks for sharing Joseph and congratulations on your success! That's great inspiration for those who are still sitting on the sidelines!