Are real estate wholesalers HORRIBLE people? [2023 Laws Against Wholesaling]
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- Опубликовано: 2 июл 2024
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Have you ever considered starting a real estate wholesale business? Wholesaling real estate is one of the easiest ways for a real estate investing for beginners to get started investing, BUT, there are a lot of questions out there like is real estate wholesaling legal or is real estate wholesaling illegal or unethical? There are even new laws against wholesaling real estate in 2021 that you will definitely need to know about!
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We're not bad people at all. We actually help the people real estate agents Dont want any parts of. I'm 8 houses in. might need to get a license but I'm ALSO GOING TO WHOLESALE. Period 😁
I had the same idea. 💯
I'mma keep wholesaling
What state do you wholesale in?
@@kashchange4289 Baltimore
what state are you in, you a reall hustle
I always try to use an Affidavit Memorandum on my deals. That way it protects me from being cut out of the deal and the deal only goes through me. Love your work Lili.
Great info Lili. Hi Mohammad, brother I was wondering if you’re willing to share some info on the Virtual Wholesaling or be my mentor then Please DM. Looking forward to hear from you.
Let me know what market you’re in. I am a cash buyer.
@@kashchange4289 what market are you in?
@@vilheard3030 currently virtually in Indiana and Maryland (Baltimore), but I am based out of San Diego California.
@@kashchange4289 ahh ok gotcha.
I first heard you on the wholesaling inc podcast and I loved it! I’m binge watching all your videos to learn as much as possible. Thanks for sharing your knowledge and experience.
Thank you so much for the information! I am actually trying to get started in wholesaling and I've really enjoyed your content! Ironically, I'm in Tulsa as well!
Keep going LILI!!!! You’re killin it!
I love how you explain everything. To the point! Subscribed!
Just subscribed 🙌🏾🙌🏾 I’m jumping on the train here in Texas ! Still learning the ins&outs.
Your voice is great, very easy to follow and precise. Keep up the good work! Definitely worth a sub.
I freaking love you. You explain everything so well. 🙏🏼🙌🏼🙌🏼🙌🏼
Honesty, honesty, honesty...always pays off!
Really great video! I love the honesty and you speak very well 💯
Very valuable info I'm thankful for you and your content
I really like your content, keep up the good work. This happens a lot and one of the biggest reasons I don't wholesale. Now I purchase and just list in the MLS (Wholetail) you make more money.
Do you actually purchase, or put them under contract?
you are so inspiring!!! , I'm learning all I can and hopefully soon will be able to attend your beginners boot camp
I’m new to the game, but I’m ready to jump right in and get started! I plan on purchasing your class on tomorrow! I know you’re consistently growing, but will I still be able to get the “practice one-on-one time” for certain?
You are an ANGEL for sharing this information. Thank you!
great stuff lili in gonna wholessali in 2021
Hi Lili am jammie am not a regular drop by on your channel but I really like your content and it has helped me make some sound decision in real estate here in Kenya..I would like to really thank you so much so so much ..may you have in abundance...in the last year I have been able to purchase 3 property..thank you so much
Good points... it’s been a mental struggle for me. I’ve dealt with so many sleazy wholesalers and I’m so done with that! I don’t even accept that label. I never call myself a wholesaler ever!
Don’t call yourself wholesaler. (Investor) We don’t solicit off market. Our focus on market with Realestate agents. Very successful.
I GUESS YOU MET ALL IMPLACABLE REAL ESTATES AGENTS PLSSS.
New SUBBIE! Please keep on with these videos and your 5-day bootcamp. I'm saving money so I can RSVP for the next one. Thanks Lili!
Bravo young lady! I’ve been in the real estate business as an agent for 30 years, and you’re one of the best I’ve seen if not the best. I think it’s all about doing the right thing and it’s a shame a few bad apples will ruin it for the rest of you guys. I’d work with you anytime.
I love your channel I even have a whole playlist of your videos.......................
Great video 👍
I love the transparency. I was just wondering what I could say to a seller once I get started. It’s OK to say that you are the deal finder. That way people will have more trust in you.
This is so true. I Love the content & the breakdown of what's going on. People water down the ethics of this business because of bad numbers, & unethical behaviour. RealEstate Agents are just mad!
HelloLili Young Lady keep doing what your doing And God Bless
Good Video! Yeah cold calling is a good idea.
Yes I heard that’s called getting “back doored” and there is a clause you can place in your contract to prevent it from happening.
Great video
Great video!!!!! I actually seen on the news that wholesalers in Philly will need a license which cost $200 a year and will need insurance for the business.
That’s pennies when you consider the possible return.
@@richie5959 exactly. Two hundred a year for a license when you could be making twenty grand a deal? It's nothing.
@@richie5959 you sound just like my mentor lol,true though.
No dislikes.... let’s keep it that way! Love the video keep up the great work ! #oneLove
Love the video by the way
I appreciate your professionalism Lili. You have excellent content detailing the hustle and it's also entertaining seeing the process come to life. You have inspired me to explore the process further. However, the main issues I see concerning REA's (real estate agents) and Ws's (wholesalers) are: 1) As a profession, licensed agents have taken many costly hours in Principles, Law, Contracts, Forms, and Finance and are required to continue educating, whereas Ws's have no requirements/obligations to any state or nationally regulated education (just learning the loophole strategies). 2) In order to serve clients in a professional capacity, real estate agents have applied for the licensing, been fingerprinted, and background checked by the FBI. Who vets the Ws's background? It just seems that there are double standards in regard to earning commissions in a real estate transaction for those who have done the tedious work and are legally allowed to take fair "pay" and those who haven't and "earned" that massive "fee." Just my opinion...
Overall great 👍 information
Great video Lili! I am a licensed RE in Florida whose interested in wholesaling. Most agents don't like wholesalers lol but I see the value in it and want to incorporate BOTH :) $$
I heard that you cannot be both.
Os true but just you need to in active your license and thats it, ;)
Omg Lili I knew you looked so familiar. Definitely have seen some of your college basketball games. Just looked up your stats! good 3pt shooter!
I KNEW SHE COULD PLAY BALL!!
I love how teach women keep up the great work
I've actually put a stipulation in my contacts avoiding this from happening..love your vids
Stay informed... be transparent... disclosure is key. Know your states real estate laws and statutes.
Keep yourself surrounded with solid people in the industry and prosper !!!
It will NOT become “illegal” but I think we need to regulate and police ourselves better...
There’s nothing unethical about wholesaling. It’s a way of life. 🤓
You have taught me a lot in this space and I’m stoked to learn more about it & how to help wholesaling create a better name in the industry, if it remains.
Keep doing your thing girl! Your videos are much appreciated.
I'm looking to start birddoging soon. Also a great way to get into real estate!!
in one video you said that you try to get to deals as soon as they hit the market, sometimes before pictures are uploaded. How do you access to the MLS?
I got into Real Estate by learning wholesaling first and then decided to go ahead and get my license. Your point of view is pretty unique when it comes to wholesaling.... Some of the most popular wholesalers are adamant about not disclosing the fact that they’re wholesalers and they pretty much think that the less the home owner knows the better... I agree with you when you say that it doesn’t have to be that way... A good salesperson should be able to put the facts on the table and give the home owner the option to make sound decisions... Wholesalers being anti disclosure & the Real Estate commissions being full Disclosure is the root of the problem. But as you said it doesn’t necessarily have to be that way... All it would take is some slight changes in the approach toward the homeowners...
Well said,how long does it take to get your real estate license?I've been thinking about getting my license anyway.
@@vilheard3030 Real Estate School for me took about 3 weeks. Then once you finish the school sponsors you to take the test. In NJ the test takes around 3 to 4 hrs
@@mrobinson7750ok that's not bad,I guess I'll be going to real estate school soon.
@@vilheard3030 It won’t hurt to have the added credentials.
@@mrobinson7750 exactly and it's way less than I expected it to be.Thanks for info!
Next time To put a halt on it ... (Another person taking your deal) Affidavit of Memorandum... fill it out... submit it to the court. That will lock up your deal.
whats is a affidavit of memorandum
@@entrepreneur1013 It's a form that you (AND ONLY YOU.... the seller and prospective buyer need not sign it or even know about it) fill out notarize it and submit it to the court house. It will basically block the seller from going with another buyer or wholesaler once you have them under contract. Why because with that form submitted to the court if the seller try to go with some ones else and when things goes to title, the title company will see that the property is already under contract with someone else. And only you can release the block if you want so the seller can go with someone else.
Jerry Norton on RUclips is better in going into detail on it. And he wont leave you guessing on certain topics like LiLi does. Here is a link to Jerry's video ( ruclips.net/video/HRb0DbjTEK0/видео.html ) and he gives you the form to download free.
@@nickbutter9270 good information, i see you been in business for awhile to know that
Sad to find out that Illinois has so many restrictions on it. I have to get my real estate license in order to do it. I did so much research on wholesaling for like a whole week to find out I’m not able to do it in my state
@DLO 06 you can get away with one deal but any more than that you need ine
Great video-----
Glad you enjoyed it
Part of the problem is who the property goes to after it's renovated...if they are mostly rentals(brings down community value or decreases chances of first time home owners getting a property and starting to build wealth in what should be an affordable neighborhood) or price neighbors who have kept up their properties way out of the market through higher taxes or foreclosure ...in a way that is squeezing equity out of whole communities and concentrating wealth in the hands of fewer and fewer people
When you secure a deal on a home do you tell the home owner how much you plan on making? Taking advantage of a distressed home is much different from taking advantage of a distressed seller.
That’s why when I send it to groups I file an affidavit & memorandum of agreement.
Basically no one can sell it but you even if the seller breaches the contract. Cost $25 and no one can steal nothing.
Deliberately overbidding to lock everyone out is a HUGE problem and the agents I'm working with can't stand wholesalers. They get the contract and then hard sell dropping the price to where the rest of us were bidding.
I can understand the push to regulate the industry when I come to youtube to educate my see videos of wholesalers boasting about such lucrative spreads on small deals when agents are only allowed to collect a small percentage of the actually sale. One such video was of a guy who made a whooping 97k on a deal.
With no money involved. While us, the ones with the Bj's, carrying all the stress, expense, liability and production of a rehab , have to wait until someone lets go of a deal or actually comes up with something decent that has some meat left in the bones. I had been wondering how long it was gonna take for the government to regulate this.
Respect for showing the shark aspect of things
Juuuust another reason to do on market deals!
It's just words on paper. If you don't have proof of funds, anyone can circumvent you.
Being forth right upfront show integrity may also build trust secondly, I would not be surprised if Law Officials limit how much a WS can charge that could end up at the bare minimum low % personally I think in some cases Assignment fee/ charges does not have a cap WS can profit more money than what the Seller walks away with.
We need to limit our exposure to government They need to start working for us, as we hired them. They seem to forget, Gov needs to stay out of business, period. In the meantime they can explain to us how are they have 5MM dollar homes on 130k a year salary.
Why wouldn’t you sign memorandum protect deal?
This reminds me of Uber and Taxi/Cab beef
Sooo true because I used to be in that business lol
Much respect for keeping it real.
Okay so question.... I have no license or certification behind me. So. With wholesaling real estate am I able to “just get started” one day ... ? Let’s say I’ve researched enough online to where I feel confident to start. What do I do first .... just ... start by finding a house and snowball from there ... ? Thanks in advance.
Hey you should make a video on POFs
I live in California. I have a real estate license and just joined a realtor association. But, I am working as a realtor. How should I contact the listing agent to do deal with them as a wholesaler or an agent? What contract should I sign with them with a contracted deal? So, I can go to find a buyer. How should I approach the listing agent when I don't have a buyer for that house.
One way you can work around this is wholetailing right? Also using short term loans( transactional funding)
Justin good point! That would be work around since your're taking ownership. Sounds Philly wants you to improve it first. But I don't think there was a definition of improvements.
Wholesaling real estate is just like being a Freight broker, there’s always a middle man. Great video!
Yes it’s is ...they need need to start signing petitions and shit to put a stop to that now !!!
thats why they should get real estate licenses
Just starting great advice
@DLO 06 A few things. When a home owner is ready to sell. They are ready to sell. They tend to have this preconceived notion that they are going to get ripped off by agents but 9 times out of 10 they always end up coming back to agents.. I have snatched away many a deals from wholesalers. Also many state are moving towards making wholesaling illegal. Lets look at it for what it is. You selling real estate without a license. I have never met a wholesaler who was entirely honest about the process. I know of multiple law suits against wholesalers who did not fully disclose to homeowner they where selling their homes. Even though they signed the contract the homers are stating that the wholesaler promised to help them get the home back at a later date. And the deals have a name on the licensed side. They are called "NETE LISTINGS". So If Homeowner and I agree to listing a home at 500k and it sells for 800k I keep everything over asking. If I can do it how can somebody who is not licensed do it? and those Net listings are illegal now in all 50 states.
@DLO 06 In a lot of states yes it becoming illegal. Buddy. Google Illinois law on wholesaling. And Other states are following. There currently 7 states with laws on wholesaling pending. Google that buddy...LOL I know its a double
close but it is still selling real estate
What do you think about the future of wholesaling in Cali?
How do I get on your list? I'm on So. Cali, looking to buy a cash deal
Lili yre the bomb girl! But tht story of that fraudulent cashbuyer stealing yr deal right from under you was nasty, you should put his name out there! Itll all come back to him. You go girl!
i want to start wholesaling, and love your video. numbers are super important, but what do you do with so much competition. I think when you do the numbers right, then you will be outbidden every time.
i dont thinks its going to be illegal but different for sure as far as how you do wholesaling. but it will always be a need for wholesaling.
Philadelphia the same city that is more willing to sale undeveloped land to new business owners while the old buildings on land deteriorate beside new business and two blocks away.
Wanna why that is cause a lot people are doing it like finding a loophole if u keep it by urself it won’t explode but if u share it on social media it will get a lot of attention that’s why Philadelphia past that law now who knows how many more states will do that
Have you fine virtual wholesaling? If not do you recommend a RUclips channel that is good and honest like yours?
I was interested at one point....but not anymore. After learning about all the problems, and how much wholesalers are hated... I am not going to bother. Now government regulators are making it illegal.
Seems scammy to me.
Other than your videos, I don't know much about wholesaling, but it doesn't seem inherently unethical. Similarly, being a landlord is also often seen as unethical, but I don't think it has to be if you provide reasonable priced, well-maintained housing.
God bless you for all you do to help others. 👼🏻
Im in Cali and i have my license too so im ready for it
My experience with wholesale properties as a licensed real estate agent is mixed . Some deals went smooth others crashed and burned. We have license laws and ethic requirements as a licensed agent for a reason .
It needs to be regulated big time. It's too loose right now and there's some unscrupulous people out there giving homeowners 20k while keeping 50k. Idk how they sleep at night.
Hey lili do you do your transaction thru a business account under a ein?
What's funny you can force them to sell to you that contract is binding
Yup I live in Philadelphia, where the market is in very high demand and as of January of this year, wholesalers are REQUIRED to obtain a wholesalers license.
It's really just a $200 fee for a legal piece of 📃 🙄
No classes or exams, as the wholesalers does not have the same ethical practices as agents and brokers.
Philadelphia is an area of rapid gentrification and,, now with over 3billion in commercial and residential real estate, invested in just the last 2years, the city is cracking down and passing new legislations left and right 😒
You are the best, I love all of your videos and may GOD always bless you for sharing your experiences with us, you are the most realist real estate investor I have ever met, and you are a Super Star, forget the naysayers and negative people they are miserable, one thing that is wrong with this country's, is that people hate to see other people do good. Let's work together someday, please hit me up!
I have been contemplating to whole sale on the side. But always been like ehh how do I even start.
RUclips TTP Brent Daniels
The problem is that there's too many doing it and hold properties hostage without being able to move them because they dont know what to do. That hurts people like me who are real investors with a lot of money in the game.
@@c.m.2747 yup that’s what I figured
Where is your video about disclosing that you're a wholesaler? What is it called?
I’d like to wholesale houses are there are any different laws in California that may be a problem for me? If not I’m ready to join the boot camp April 17, 202. Hopefully I can come back to this comment and let everyone in on my success. Thanks for all the info you’re easily one of the most informative in the game!!
Is the wholesale market in California even worth it?? I live in the Bay Area but I assume that the prices are already so high how can you even make a profit??? Genuine question
Trust each other
I’m interested in the boot camp. When does it start? What are the times during the day?
bit.ly/3eDBTmE
Got it! Thank you.
@@whitneycoyour Just got your sign up. Welcome and I look forward to "meeting" you soon. You'll get your email confirmation and log in today, and the weekend before the Bootcamp you'll receive the Zoom link.
How do I find out about wholesaling laws in my local area
Wholesalers are needed to help buyers who are having hard time finding homes and homeowners having hard time finding buyers due to the distress of the houses..
Market value for a home that is deteriorating makes no sense.
Can someone just help me understand where to start researching? I know absolutely nothing about real estate.
As soon as I find a way to change my life I see this, that’s tough
Its just your mindset and attitude. You can still adapt and still make money and change your life ,don't give up.
So annoying
Man I just found out bout this I said the same thing
Exactly! Good to see someone can understand and relate. It’s like ppl don’t want you to make it at all in life. That’s just how I feel.
WOW! I was just thinking the same exact thing. Just stick with it, you'll be successful.
have you been using the 75% formula in all markets?
I tried looking up the wholesaling laws for Ohio, but I found little to no information. Do you know anything about Ohio
I thought the RE brokers were the middle man?
Lili how are you able to up charge on market deals to cash buyers without rubbing them the wrong way since the price is visible online?
You're doing this business wrong lol
What????
GIRL YOU BETTER NOT LET THAT HAPPEN AGAIN .
That’s so interesting. Here in Louisiana, realtors cannot wholesale at all. They actually have to sign papers saying they have nothing to do with the deal, if a family member does a wholesale deal.
Do you have any deals in La? Im in Georgia and this is way too crazy. Lmk if you have something! Tks.
What you forgot to mention with your Lowe’s example, those stores are all licensed with the state, and city they’re operating in.
My main goal is buy and hold. I love my wholesalers. It’s gonna be a bad stretch if they put a halt on wholesale.
Nah, just gotta go back to how it was before them. Deal directly with the homeowner and buy from them. Leg work but there will be more properties to choose from. A lot of people used to list their homes in the newspaper, technology took over and now it's all online. They'll reach to realtors or go on market place and other places.