Real estate is a great business to be in. But it is also one of the most heavily regulated businesses you can be in. There is a very good reason for that heavy regulation. There was a time when the real estate game was dreadfully corrupt. Sadly, this is why regulations exist. It is to keep companies and industries from exercising the worst of capitalism and doing harm to individuals and societies. If history is not your thing and you didn’t live through the bad old days, just take my word for it. The abuses were abominable. 

That is important because if you have no context for these regulations, the real estate business is confusing to the point of being bewildering. Why should we need special, licensed agents to sell something? You don’t need a license to sell a car. Talk about a business that is open to abuse! You don’t need a license to sell computers. Considering the nature of the sensitive information stored on computers, perhaps a license would make sense. So what is it about real estate that requires such special attention? As a buyer or a seller, this is the sort of thing you might want to know. Here are a few others:

  1. Is Wholesaling Real Estate Legal?

Is wholesaling real estate legal? Yes. It is absolutely legal to wholesale real estate. As with everything, the devil is in the details. These laws are made and enforced by the state. So you need to check your local laws to see what the restrictions are. Ignorance of the law is no excuse. And you will likely see little leniency if you find yourself on the wrong side of the line. 

Real estate wholesaling is a little like house flipping. You do not need a license to do it in most cases. But you should be aware of what you can and can’t do without a license. One of the easiest ways to do it is by assigning a contract. That is different from selling a property. You can get a real estate contract assigned to you at one price, and reassign it to someone else for a profit. You cannot advertise and sell the property. That is something only the owner of the property, or a real estate agent can do. Learn the right way to find prospective buyers. It is a technicality that makes wholesaling possible, popular, and profitable. 

  1. Should You Invest in Commercial Real Estate?

Investing in commercial real estate has its own unique set of risks and rewards. This is not the way to go if you are into low-risk, quick turnover transactions with modest profits. If you are willing to play the long game for bigger payouts, tax benefits, triple net leases, and the like, commercial real estate might be your gold mine. Just remember that most gold miners didn’t strike it rich.

  1. How Long Does It Take to Get a Real Estate License

Wholesaling by assigning contracts is a great way to get into the real estate game because anyone can do it with very little investment. It is almost too easy. But it is also limited. You can go a lot further if you get a real estate license. Be prepared to spend a little money, take a little time, and study really hard. To get your license in New York, it takes about 4 to 6 months to become an agent. Becoming a broker requires 2 to 3 years in the industry and 120 hours of coursework.

  1. What Is the Best Way to Buy a House?

As a buyer, you want to get a good deal from someone who is not looking to fleece you for every possible dime. But you also want someone who knows what they are doing and who takes on a fair portion of the liability. You can do well buying from a wholesaler or flipper. There is a certain amount of safety and comfort in dealing with a traditional and large brokerage. Just remember they have to pay for all that marketing somehow. That somehow is with the commissions they make from you. The best person to buy from is the person you trust the most.

You will have a lot of real estate questions that are well worth researching. But take comfort in the fact that whether you are a buyer or a seller, the regulations are there for your protection. It has never been safer to buy or sell property.

 

Categories | Article | Fundamentals
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    We believe in the positive, life-changing impact of real estate investing. Our mission is to help investors achieve their goals to build wealth, better manage time, and live a life full of purpose.

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