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Articles For Aspiring & Active Real Estate Investors

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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Is Wholesaling Real Estate Legal In Pennsylvania?

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:

Pennsylvania Equitable Conversation Wholesaling

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: 

  • The execution of a contract for the sale of real property
  • The delivery of the deed and marketable title to the buyer

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...

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Is Wholesaling Real Estate Legal In Kansas?

Wholesaling real estate is a smart way to get your feet wet in the world of Kansas real estate investing. However, like any new business venture, an entrepreneur or investor must be aware of the investment technique’s benefits, as well as those issues to avoid!

The real estate wholesaling business is simply a technique in which – the real estate wholesaler executes a contract of sale with a seller but then seeks to assign the rights and obligations delineated within this real estate contract to another buyer – an end or cash buyer by executing an assignment of contract. Wholesalers typically find prudent wholesale properties from motivated sellers – those with a strong personal/financial need to sell the property pronto below market value!

Kansas Wholesaling Real Estate

The art of real estate wholesaling is often characterized as the actions of a middleman, but one of the best ways for individuals to break into real estate investing in Kansas because it does not require...

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Is Wholesaling Real Estate Legal In Ohio?

Real estate wholesalers employ an investment strategy in which they enter a purchase contract as a buyer but then seek to find another buyer – an end buyer to which they can then assign their rights (known as equitable interest) provided under the original contract with the use of an assignment of contract. Because successful real estate investors who use this strategy may have several properties working simultaneously, they are referred to as 'wholesalers.'

Real estate wholesaling differs from the more well-known real estate investment strategy of house-flipping. The difference lies in the fact that many real estate wholesalers can turn a profit without ever taking title to the property, which effectively reduces potential risks (and significant liabilities) created by the tasks required to fix up a property – even if the renovations are somewhat insignificant.

Often real estate wholesaling professionals will enter a contract that is assignable (as defined by the...

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Is Wholesaling Real Estate Legal In Indiana?

Before considering wholesaling as a form of real estate investing in Indiana, you need to know if it is legal so you don't get on the wrong side of the law.

In this article, we'll answer the question: Is Wholesaling Real Estate Legal in Indiana?

 

What Do You Need to Know About Wholesaling In Indiana?

As the 17th most populous state in the U.S, Indiana presents many opportunities for wholesale real estate investments. In 2019, approximately 36,722 new residents moved to the state, bringing its total population to 6.73 million. Projections also show that by 2050, the state will have recorded a 10% increase in population,...

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Is Wholesaling Real Estate Legal In Oklahoma?

Strategically located as a jumping-off point for commerce headed throughout the United States, Oklahoma has enjoyed healthy economic growth in recent years. 

Due to this growth, the Sooner State offers a wide range of opportunities for people looking to enter the real estate field.  Warm weather, wide-open spaces, and affordable prices are a dynamic combination that spells success for agents, brokers, and wholesalers willing to work hard.

If operating a wholesaling business in Oklahoma sounds like an appealing career option for you, here’s what you should know as you weigh your options. 

 

What...

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Is Wholesaling Real Estate Legal In New York?

Wholesaling is simply a real estate investing technique that allows an investor to turn a profit by entering into a 'contract of sale' to buy real estate. This process requires an earnest money down-payment held in escrow. Once in contract, the buyer can then sell their right to purchase (known as equitable conversion) to an end buyer for a profit.

Often, the primary objective of a wholesaler is to enter in a purchase contract for real property, with a purchase price that is below market value – which may include a home in foreclosure or disarray.

When wholesaling real estate, the asset being sold is the buyer's contractual rights rather than the property itself.

While real estate as a wholesaling business is legal and offers a smart real estate investing technique to earn significant profits, the wholesale deal must be executed carefully with due diligence that weighs legalities appropriately and the anticipated outcomes.

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