Posted by Kerry on September 11, 2011 at 10:41:28:
I need clarification please!
I am concerned that some of the tasks involved in the process of wholesaling are inherently connected to practicing real estate without a licese.
I am a wholesaler.
I never intend on taking title to a property.
The unilateral option agreement, once signed by seller and me, surely states that I have an equitable interest in the property but am not required to perform i simply have the right to buy the property at our agreed on price within stipulated time frame. Where it gets cloudy to me is what happens AFTER the option agreement is signed.
The minute I get the option signed my sole focus is to find a real rehabber to purchase my “option” at whatever markup i feel is realistic. Are we not then “working for the seller” in a sense?
All I’ve read so far is we are “selling our contract” not selling a property, but realistically look at what we do…once we have our option contract signed we blast out to craigslist and to our buyers list a detailed description of a “real property” to generate as much buyer intrest as fast as possible. Call it what you want but it is marketing a property isn’t it, which is the only way you can be successful and do the deal!
My question is about the interpetion of our “intent” as wholesalers. We tell the seller our true intentions, that we are simply placing the house under option in order to have an “equitable interest”, and that I will buy the property. Of course this is not the case and I actually start marketing the property/option contract to real rehabbers the minute after we sign the option, then is it not obvious our intent was to never purchase the property? How would a judge rule?
I think this is where the gray area is…the option contract covers our RIGHT to buy however our INTENT is to unload the property as fast as possible which is obvious to anyone understanding wholesaling.
I just don’t want trouble by my actions as a wholesaler being interpreted as practicing real estate without a licence. The marketing portion seems to cross that line. Are there precedents in Illinois I can refer to? I want to run ann ethical and profitable business…
Thanks for any advice