Wholesaling Houses......Without A License!
Do you need a license to wholesale (a.k.a. "flip") properties for quick cash in real estate. My answer is most definitely "NO".....within the right context.
I'm prompted to inform you about this from what has happened in my own local creative investor club. In order to always make a long story short one under-educated real estate
investor thought that individuals were participating in illegal activities since they did not actually own title to these houses---gasp!!
The idea of wholesaling houses for quick cash is most definitely ethical AND legal within certain parameters. The above mentioned individual just needed to be more eloquently educated!
It all boils down to this......can someone sell a property they don't actually hold title to in their name? I can't stand on a chair and light my hair on fire yelling at the top of my lungs
enough to state "YES"! The issue with some will lie with a person being "licensed" as a Realtor versus a creative real estate investor.
Agents work off a commission basis with legal guidelines for pursuing the BROKERING of sale between the buyer and seller. The creative real estate investor has an opportunity to profit and "speculate" on a real estate transaction under the true and correct context.
The creative real estate investor MUST have a legally vested interest in a property. This legally vested interest is evidenced by signed contracts AND monetary consideration binding
these agreement(s).
I personally wholesale properties by agreeing to terms, price and closing cost stipulations with a seller AND a buyer. In addition I ALWAYS have monetary consideration involved with my seller and I always collect monetary consideration from the buyer I'm wholesaling the property to.
Quite frankly I just do not pay earnest money considerations to my sellers. With the amount of offers and deals I have tied up that would be substantial. I still must have monetary
consideration which my attorney holds in escrow.
That same $100 amount has wholesaled many, many deals for me. If proof of earnest money is requested by my seller, then my
attorney is happy to draft a letter stating that it is held in escrow. It just is not a problem with me because I ONLY work with truly motivated sellers.
Let me also be very candid here that wholesaling properties has also been severely abused in the creative real estate community.
I have seen first-hand..individuals that have accepted earnest money deposits from their wholesale buyers and then never actually facilitated the closing! Unfortunatley this is the real world and that does happen.
My emphasis for you here is to know that wholesaling is an absolutely 100% ethical and legal way to make significant cash in real estate. Follow the right guidelines in pursuing deals with written and signed contracts along with monetary consideration and you too can reap these creative real estate benefits.
For the entire scoop on the process check out "Instant Cash Wholesaling Houses!" guaranteed to get you on the fast track to
flipping houses for quick cash.
That same $100 amount has wholesaled many, many deals for me. If proof of earnest money is requested by my seller, then my
attorney is happy to draft a letter stating that it is held in escrow. It just is not a problem with me because I ONLY work with truly motivated sellers.
--Scott Rister--
That was classic a $100! An entertaining read!
I'm not that familar with TCI...and still don't know where you are located. When this board talks about a class/seminar they don't put the address of same. Course, I'm not going out of town to attend.
TCI sent me an e-mail saying that I had a response to this post...but damned if I can figure out how to retrieve it.
Also,don't know who designed this web site but I can't find any link anywhere as to an e-mail address for TCI.
Buddy,
I'm not for sure exactly what you are referring to on class/seminar. I'm located in Greenville/SC but I don't have a class or seminar to attend even though I publish material on finding motivated sellers and wholesaling.
Thanks
Scott
I read the article... I have a question! Assuming I have a motivated seller, I should have a contract signed with them saying that if I can get this property sold they must pay me a certain amount of money or percentage?
Ventura,
I absolutely never negotiate with the "seller" on what I will make on the property upon securing a qualified buyer. I negotiate a price and I negotiate a price with my wholesale buyer. Most of the time neither party knows my actual profit as I'll conduct simultaneous close. If the price I offer the seller to sell and the price I offer the buyer to buy work for them.....then my profit is quite frankly none of their business. If it works for their buying/selling strategies then they have to evaluate solely on that and not what I'm going to make on the deal. Just know that sometimes "greed glands" can happer your negotiations with each side when they openly know what you're looking to make.
Scott