Is Wholesaling Legal?

Jeff Watson is the Legal Counsel for our parent organization, National REIA. He has a very good post up at his site about wholesaling. Although it is about Ohio law, he thinks most states are similar.

Wholesaling Real Estate

As a lawyer, my favorite answer to give when I’m asked even a very simple question is, “Sometimes, yes; sometimes, no. It all depends.” When it comes to if wholesaling is really legal, that answer applies perfectly. When you do it right in the State of Ohio and follow the requirements and rules set forth in Section 4735.01 of the Ohio Revised Code, wholesaling can be done in a legal, compliant manner.

Are most people wholesaling legally? Absolutely not. In fact, in the last few months, I’ve been privileged to work with two large national organizations to make sure they are compliant with Ohio law when it comes to what they teach their customers and students.

Why is it necessary to get it right? Because this is an era of growing regulation and increasing scrutiny. The complaints of homeowners who thought they had their house sold, only to find that some joker put it under contract and couldn’t do anything with it, are reaching the ears of regulators and causing problems for investors.

The rest of the post has several videos on various subjects. You can see them here: http://watsoninvested.com/wholesaling/

 

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