Remember that lawyers work for you. Their job is to write contracts for what you want to do, which comply with local laws. Don’t let them tell you what you can and cannot do.
The real estate board regulates AGENTS, not INVESTORS. So whatever they may or may not say is irrelevant to you, unless you have a real estate license.
Another thing to remember is that the real estate boards are desperate to put off investors if they can, because most investors take business away from agents.
Anyway, if lawyers are quoting you realty board propaganda then there’s only two possibilities: 1) You aren’t describing what you want properly (so they think you’re trying to be an agent), or 2) You’ve simply run into a bunch of idiot lawyers (very likely.)
In wholesaling you want to assign your contract to another buyer, well if you dont have a RE license, and it is considered by the OBRE, that you are bringing a seller and a buyer together and acting as a broker/agent…then do you have to do double closings to stay out of trouble? That seems to be the only way.?
Doug, As I told my husband…I dont know how many different ways to EXPLAIN myself in what I want to do. We have explained it thoroughly. Only to hear statements like (it doesnt matter if other investors are doing this and getting away with it, the OBRE isnt going to change their view…and so on and so forth) We are talking to our 3rd attorney monday! Wish us luck! What would you people do if you were in the state of Illinois, just go ahead with your own contract and follow thru? We still need an attorney to look over the contract. I’m getting tired already!
Pam, With lawyers who are not real estate lawyers(sometimes, I have found some real estate lawyers don’t understand what investors are doing, how sad) don’t know what they are talking about saying you are acting like an agent bringing a seller and a buyer together! Don’t fret with what the lawyers are saying. I agree with you that it is a little intiminated but what you’re doing is selling your interest in the contract for an assignment fee as an investor. As you learn more about the real estate investing business your confidence level will increase from being a beginner to being a seasoned investor. Intimination comes from the fear factor which is a stumbling block for all beginners but it can be cope with through educating yourself in areas outside of your comfort zone where eventually you will feel comfortable in doing what you need to do as an investor. Listen carefully what the seasoned investors on this site says and recommend to you to do. I like what Doug said for you to do “Stop acting as a realtor and start acting like an investor!” Do you see his point in what he is saying to you? Sometimes you need to change your “thinking process” as an investor! Hopefully one day you will be doing your first deal and please write it up and send it to JP for consideration in the “Success Stories” on creonline.com. I don’t work for this site but I do enjoy reading of successes of beginners! Hope this will be a source of encouragement for you to go forward in your real estate investing career.
Pam: you might want to do some reading in the archives here on this board. Also in the articles section. This issue has been covered ad nausem. Regardless of what Realtor Boards would like to see, it is not illegal to sell or assign your interest in a real estate purchase contract. If you are speaking with attorneys who say that it is illegal, then you have the wrong attorneys. Make sure you find a real estate attorney, not a general attorney, to consult with on issues like this.
It’s good to know the climate in which you are working and if there is stuff going on between the OBRE and investors in your area, then you should definitely be paying attention. But it shouldn’t prevent you from doing deals which are legal. Sincerely, Kristine
Well that explains it, you’ve only talked to 2 lawyers! When calling on lawyers (real estate lawyers that is) randomly, you’ll have to talk to at least 10 or 20 to find one with a brain … I mean, open mind.
If you want to cut your search down, contact other investors and ask them who they use. If you don’t have other investors advertising in your area then call realty agencies and ask for agents who specialize in working with investors, or who are investors themselves, and ask them who they use.
Another alternative is to get the Illinois realtor’s contract (from the OBRE) and have any real estate lawyer insert an assignment clause and an inspection clause for you. Then off you go.
Meanwhile, are you absolutely SURE you want to and know how to do wholesaling? Have you studied your market to see if it’s a good niche to work?
The reason I ask is because attempting to wholesale in my market is a waste of time. Rehabbers can’t find their own deals worth doing, nevermind leave enough room for a wholesalers profit.
Doug- OBRE…Office of the Board of Real Estate. I agree with what you are saying. However, if you are a newbie and each attorney in the area you want to work, says the OBRE says this, this OBRE says that…well yes, I think I’m a little intimidated, human naature when attempting something you’re new at. Thanks for the input.