Articles For Aspiring & Active Real Estate Investors
Are you curious to know if and how you can wholesale properties in Kentucky? Are you new to real estate investing and considering it as a career?
If this sounds like you, read on! We've got a lot of the answers you're looking for.
The Commonwealth of Kentucky is home to about 4.5 million people. More than a quarter of Kentucky's population lives in Jefferson, Fayette, and Kenton counties.
Seven other states...
Real estate wholesaling is an investment technique that has recently become quite popular because –
With its rise in popularity, opponents have voiced concern, contending that real estate wholesalers are violating license law by performing actions that rise to a level that requires a Massachusetts real estate license.
This is simply not true. Wholesaling principles are present throughout a competitive marketplace, seen even in the local lemonade stand run by the neighbor’s kid. Wholesaling real...
Utah is one of America's most unique and fascinating states. It was admitted to the union as our 45th state in 1896, also making it one of our youngest states.
Fifty years prior to statehood, Mormons first settled Utah as part of their search for a promised land free from religious persecution. Today, Salt Lake City is the world headquarters of the Church of Jesus Christ of Latter-day Saints.
Mormons still make up about 70% of the state’s 3.2 million people and have considerable influence on many parts of the state and its institutions.
Utah is centrally located making it an important transit center, has a thriving economy, and a relatively young and economically stable population base.
For these reasons and many others, you may be asking yourself if wholesaling real estate is legal in Utah, and if so, what do you need to know if you’re considering this as an income-producing venture.
Real estate wholesaling has recently experienced overwhelming increases in popularity as an investing technique, which resembles the method for flipping houses, but without the money typically required to complete the wholesale deal. With its rise in recognition, critics have begun to voice their objections – asserting that a real estate wholesaler is somehow circumventing license law and acting like a real estate salesperson or broker but doing so as an unlicensed professional.
The reality is basic wholesaling principles are evident in every market sector - in supermarkets, banking, and the neighborhood kid’s lemonade stand – as it is simply the principle of investing for value with the intent to sell for a profit. These decriers fail to recognize the fact that a wholesaler of a real estate investment property is not selling real estate but their beneficial interest as a legitimate purchaser of real property detailed in a contract of a real estate transaction.
The real estate wholesaling business simply refers to an investment technique. A real estate wholesaler or investor enters into a purchase agreement (or contract of sale) that establishes for the buyer/wholesaler certain rights/obligations under the Doctrine of Equitable Interest or Equitable Conversion, but then chooses to sell these established rights to someone else, an end buyer, before the sale closes.
The difference between the original sale price for the investment property and the higher price paid by another buyer, often a cash buyer, is the earned assignment fee.
In other words, the buyer takes ‘equitable title’ or becomes the ‘equitable owner’ when the contract is fully executed. The time referenced in this regard is defined as the time between these two homebuying events -
Located in the heart of the Pacific Northwest, Idaho is a state full of natural beauty. Wildlife, abundant lakes and streams, sweeping mountain landscapes, and vast areas of protected wilderness and recreation areas make the Gem State a desirable place to live and raise a family.
Although only about 1.8 million people make their homes in Idaho, there are still plenty of opportunities to wholesale real estate. Flipping houses is legal in Idaho as long as a wholesaler complies with Idaho real estate laws.
That's why, if you're considering flipping properties in Idaho, you must understand state real estate laws as well as having a good understanding of resources and an overview of the real estate market.
Real Estate Wholesalers are investors who employ a technique in which they sign a purchase agreement (with the inclusion of an earnest money deposit) as the buyer. But then the wholesaler finds another party (often referred to as the end buyer) to purchase the real property (rental property, or otherwise) for a higher price – to wit, the profit earned as a middleman.
Wholesale houses purchased by real estate wholesalers tend to be below market value and offered by motivated sellers and those facing financial distress and uncertainty, like with the circumstances created by a pending foreclosure.
When investing in wholesale properties, the contract’s buyer receives this transferable right by way of the contract through the Principle of Equitable Conversion or Equitable Interest.
Because real estate investors may work several of these real estate transactions at once, they are referred to as 'wholesalers.'
Real estate wholesaling is similar to the fix and flip...
Real estate wholesaling is an investment technique in which the investor enters into a purchase contract to buy real property (which could be residential or commercial) that is typically priced below market value, typically due to the motivations of property owners, like an impending foreclosure, etc.
A wholesaler, effectively acting as a middleman, finds another buyer (usually from a curated or established potential buyers list). The final buyer is usually referred to as the end buyer who is legally assigned the right to purchase the property in question at a typically higher price than the original purchase price. The difference in sale prices is the wholesaler’s gross profit.
The legal concept that permits a real estate wholesale deal to move forward within legal boundaries is better known in legal circles as the Doctrine of Equitable Conversion, which delineates the difference between legal & equitable owners -
Source – RealEstateDefinition.com
While real estate wholesaling is not an entirely new idea, it is a relatively new phrase within the mainstream real estate community.
Wholesaling houses and other real estate is the process by which a real estate investor agrees to purchase real property as follows –
Established wholesalers often have a curated buyers list of ‘ready and willing’ potential buyers through wholesale properties and transactions previously accomplished.
A buyer’s ability to sell their rights in a contract of sale is allowed under what is referenced in the real estate investing business as the Doctrine of Equitable Conversion.
Source – quimbee.com
A real estate wholesaler in the wholesaling business seeks to purchase real...
Real estate wholesaling is an investment technique in which a real estate investor enters into a legally enforceable contract to buy a home but then sells their right to purchase the property, in accordance with the terms denoted within the contract and the legal concept known as the Doctrine of Equitable Conversion, which is defined as:
Source: Law Shelf
The law determines that the ‘equitable title’ has changed owners when the contract has been signed, with the legal title remaining until the deed is transferred. This is because the time that exists between two critical events:
It is a time when the property’s ownership has hit a bit of a gray-legal area, during which the property exists in a state of limbo between– the seller and the buyer. This is because – during this specific time, the seller has possession (and use) of the...