All contracts, options, or other devices not based upon a substantial consideration, or that are otherwise employed to permit an unlicensed person to sell, lease, or let real estate, the beneficial title to which has not, in good faith, passed to such party for a substantial consideration, are hereby declared void and ineffective in all cases, suits, or proceedings had or taken under this chapter; however, this section shall not apply to irrevocable gifts, to unconditional contracts to purchase, or to options based upon a substantial consideration actually paid and not subject to any agreements to return or right of return reserved.So i looked up the statute which i posted above and it seems that the legality can really depend on how a person is perceiving the the property that is being wholesaled.

Some of the things I've done on deals: They get: equity in a deal A new property to manage I get: someone to sign on a loan with me (if they have a large balance sheet and good liquidity and you don't then this is a good strategy for starting out) alignment of interests on mgmt (since they now get upside) additional equity in the deal (if they raise it and/or invest in the deal themselves) But, proceed with caution: As @Carlos Flores said, you need to be able to fire them as a property mgmt partner if they don't perform.

In other words, you cannot sell your real property and exchange those proceeds into a REIT.

They still took our deal to credit committee review since they were honoring the deals in the pipeline that had applications in, but I feel they found reasons to decline as they are phasing out this business in their portfolio and had easy out to not proceed.

If it were me I'd make a list let them know they have 3 days to clean it up and you'll be back to check, if not done you can decide how to proceed further.

I have a contact of eviction attorney and I already talked to the attorney ready to proceed eviction process if he doesn't pay rent by 5th on any month.

Don't sell until you identify where you can invest the proceeds for a better return.Interest rates are now highest in 20+ years and will make it more challenging to find better ROI on new purchases.

You have a recorded option to buy 50% (or some percentage) of the re sale proceeds for $10. 3.

How would you recommend proceeding.

With that said this investor and this website always wish to make sure people proceed safely and within the scope of the laws.