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Articles For Aspiring & Active Real Estate Investors

Is Wholesaling Real Estate Legal In Washington State?

Real estate wholesaling has recently become a popular investment technique. However, its machinations are nothing new and legal if the real estate wholesaler stays within the legal limits set forth by the state of Washington.  Wholesaling real estate in Washington has these advantages -

  • Wholesale properties offer investors an entrance ramp into real estate with little capital requirements. Most wholesale transactions do, however, require buyers to put an earnest money deposit with a neutral party as an act of good faith – until the transaction is complete.
  • Wholesaling houses a profitable investment technique, primarily implemented during a rapidly appreciating market, with a couple of viable exit strategies, including the double close.
  • Real estate wholesaling is a smart way for new wholesalers to obtain practical experience. While learning the trade, less experienced real estate wholesalers can also build a good buyers list of cash buyers, other types of end buyers, and...
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Is Wholesaling Real Estate Legal In Kentucky?

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.

                                          

What Do You Need To Know About Wholesaling Houses In Kentucky?

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...

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Is Wholesaling Real Estate Legal In Massachusetts?

Real estate wholesaling is an investment technique that has recently become quite popular because –

  • Real estate investing using a wholesale strategy requires little in terms of capital requirements, except that which is required for an earnest money deposit.
  • As an investment technique where one acts as a middleman, real estate wholesaling is profitable, especially with a rapidly appreciating market.
  • Real estate wholesaling allows new investors to gain practical experience, which includes building referral relationships with lenders and curating a buyers list of cash buyers.

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...

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Is Wholesaling Real Estate Legal In Utah?

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.

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Is Wholesaling Real Estate Legal In Connecticut?

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.

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Is Wholesaling Real Estate Legal In New Jersey?

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.

New Jersey equitable conversion

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 -

  1. The execution of a contract of sale for real property, when earnest money is given pending a closing.
  2. The delivery of the deed and marketable title to the buyer upon...
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Is Wholesaling Real Estate Legal In Idaho?

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.

 

  

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Is Wholesaling Real Estate Legal In Mississippi?

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.

Mississippi equitable conversion

Source

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...

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Is Wholesaling Real Estate Legal In Tennessee?

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 -

Equitable Conversion Tennessee

Source – RealEstateDefinition.com

The...

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Is Wholesaling Real Estate Legal In Maryland?

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 –

  • By placing an earnest money deposit in an escrow account when signing a purchase contract,
  • And then selling the rights (and obligations) delineated in the contract of this real estate deal to a new buyer – often referred to as the end buyer.

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.

Maryland Equitable Conversion

Source – quimbee.com

A real estate wholesaler in the wholesaling business seeks to purchase real...

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