myEmpirePROQuestion: “How can I legally wholesale real estate?”
Before we talk about Real Estate Wholesale, what is Wholesale?
Wholesale is a type of trade when goods and services exchange hands you basically have a trade in exchange for money so in this case it just happens to be real estate.
So how could it possibly be illegal?
That’s one thing but there’s also regulations.
So anytime a business is very lucrative, you know… a whole house.
If you are following my lead, you know that we don’t deal with houses any less than $100,000 worth.
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We don’t market to them, we can deal but we don’t spend our money marketing to houses that are worth less than $100,000
…or neighborhoods that have houses worth less than $100,000.
Why?
Because you wanna spend your money where you’re gonna get the biggest return on investment.
It’s a very lucrative business so because of that, there are regulations.
There are regulation bodies and agencies from the government that protects the consumers.
They have some guidelines in place and it varies from state to state.
There are quite a few states that frown at the title “Wholesaler”.
Not necessarily wholesaling, because you can’t remove that from a marketplace.
I have the right to purchase a property or lock-up a property under contract at a price less than what the property is worth.
There is nothing illegal about that.
What becomes illegal is when you do that and it’s getting scaled out.
There’s a lot of people becoming messy with the business.
Or a lot of people that haven’t educated themselves on the professionalism of the business
And they are all over the place locking properties under contract with no real intention to actually close.
Or line up the right education, the right tools and the right network to actually close these deals.
Then you have a situation where the government has to step in and basically say, “You know we need to regulate”.
We have a place like Illinois State.
The last time I checked, if you are wholesaling more than one house in any given year, you need to be licensed as an agent.
They didn’t say it’s illegal.
They are just saying, “We need to make sure you are licensed”.
So how do you get around that?
Have somebody in your team that’s licensed, that’s all… or you could go ahead and get licensed.
There are no laws or rules against a licensed person being able to flip houses.
You can still flip houses even if you are licensed.
The only thing in many states is that they want you to disclose that you are licensed.
Just, “Hey, I am licensed. just so you know.”
Just letting people know.
So the idea that wholesale will ever be illegal, get that out of your mind.
Wholesale is never illegal.
Just like wholesaling tomatoes will never be illegal.
You can’t judge me for going straight to the farm and getting the tomatoes at 1/10 the price that they sell it for in a farmers market on the regular streets.
You can’t judge anyone for that.
But if there’s so much of it going on, there’s something called market control sometimes and it’s just to make sure that the consumers are protected.
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Ohio, Illinois and Oklahoma.
Those three states frown at wholesaling because there are too many people bastardizing the process.
But if you follow my lead, if you’re going through the www.11DaysChallenge.com, there is nothing for you to be worried about because really you are not really a wholesaler.
That just happens to be one strategy that you can make money from and I teach you the right way to do it in a way that you don’t have to be worried about doing things illegally.
So with that being said, I’m gonna tell you right now,
How can you Legally Wholesale Real Estate?
First of all educate yourself.
This is a marketing business, it’s not really anything else.
You are either marketing or you are investing.
It’s one of those two.
Wholesaling is an extra strategy.
Just get that to your psyche so you can understand that there is no such thing as illegality if you are doing things the right way.
If you don’t cheat, you don’t steal, you don’t lie, you don’t take advantage of the vulnerable….
Make sure that you are serving people.
That’s the way to wholesale legally.
That’s how to Wholesale Real Estate and houses legally.