I also purchased motivated sellers now and have lists that way.

The only way it is illegal, is if you are selling Real Estate without a license.... if you are simply assigning a contract for a wholesale (matchmaking for a motivated seller and buyer), you are not selling, so it should not be illegal to practice in that state or any other state.  

Remember you can only get a contract from a MOTIVATED SELLER.

This has been very helpful and motivational!

That's what you should aim to achieve. 

What is the owner's motivation for selling?

So I am assuming these properties are not in distress (foreclosure, REO, short sale), so what would be the motivation of selling a property in the web site (or what would be a buyer's motivation to buy such a property instead of just buying a non-auction property which can be inspected)? 

It's amazing what it will do for your motivation and momentum when around your peers.For real estate investors in Oklahoma City, we have:1st Thursday of every month www.mpmeeting.com 2nd Thursday of every month www.okcreia.com For entrepreneurship & business in Oklahoma City, we have:2nd Wednesday of every month "Coffee with Entrepreneurs" www.okceg.com 4th Thursday of every month www.OKCEntrepreneurGroup.com I am a local real estate mentor and business coach so if you ever need guidance and accountability I might be a resource to you.

I'm new to buying wholesale properties but I would think it would be easier to buy wholesale properties from motivated sellers in a pre-foreclosure or handy man special than a bank owned property? 

I Recently got married and had a baby and am looking to put in some hard work in real estate investing (specifically flipping) in order to achieve greater financial freedom, as getting ahead in the rat race has proved to be elusive!