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Wholesaling Houses......Without A License!
| | Thursday, March 06, 2003 @ 04:00 AM EST
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Contributed by: Scott Rister
Scott Rister Properties
Read more archived articles about Marketing
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.
Note:
Scott Rister is an author and “real world” investor just like yourself. Scott has designed his courses to help investors get their phone ringing and to better manage motivated sellers. To find out more about how his courses can help you click here. If you have a question or comment about this article, please post them below where it says 'Comments'.
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