Is Wholesaling In NY Legal?

I am startingin investing and looking to start a wholesaling business in NY and have been in discussion with my lawyer. He questions the legallitly involved with wholesaling,



I applaud him for being concerned for my business matters but I have meet a few wholesalers who have a stong business going.



what i wanted to know is, is it legal? and if it is, can someone explain how I collect my fee for the contract.



Thanks for your help in advance.

Comments(21)

  • jackbenimble27th March, 2008

    Get a new lawyer and find a mentor.

  • LeaseOptionKing26th March, 2008

    Sounds like either you explained it wrong, or your lawyer is one of many incompetent attorneys in the country.
    [addsig]

  • ypochris26th March, 2008

    As long as you have some sort of equity interest in the property there should be no licensing issues.

    Chris

  • dgjrealestate27th March, 2008

    When you say equity? do you mean a deposit for the contract?

  • dgjrealestate27th March, 2008

    Thanks. I appreciate everyones help. Have a great day!

  • LeaseOptionKing28th March, 2008

    Best to make your Purchase Agreement have no weasel clauses (which only make getting a yes from the Seller more difficult anyway). It should also state that if Buyer (you) defaults, there is no legal recourse other than keeping the nonrefundable earnest money deposit. That will prevent any risk of litigation (however slight it is).
    [addsig]

  • dgjrealestate30th March, 2008

    Once again I thank everyone for their time and appreciate the advice.

  • Treepolaych30th March, 2008

    I dont know about the laws in NY but there isnt anything illegal about having an equitable interest on a property. That lawyer is a nay sayer and shouldnt be on your team.

  • ypochris17th June, 2008

    I was able to obtain a policy for the $22,500 I owe on the property. (Plus $300,000 liability, etc.) Cost was $420 a year, with a minimum earned of under $100 and the rest refundable when the rehab is completed and I move it into a landlord policy.

    Way expensive, but the lender required it. Point is, you can get a policy for less than 3M.

    Company was American Modern Select Insurance Company.

    Chris

  • cjmazur18th June, 2008

    Oh, BTY:

    I have a buddy looking for 1 week of temp housing. nudge nudge.

  • bargain7620th June, 2008

    I sorta hate to go against the grain and poo-poo insurance.... but we sold over 70 houses last year and had one insured. Only one.

    The one we had insured was the victim of burglary and theft.... the outside A/C unit was stolen. Of course, the insurance company showed me the clause that indicated that loss was not covered.

    So we paid $1,100 for insurance, then $2,500 to replace the outside A/C unit.

    In my opinion.... so much for insurance. I have much better results being self-insured.
    [addsig]

  • ypochris20th June, 2008

    Bargain,

    I am with you 100%. I only buy the minimum insurance that the lender requires.

    Chris

  • 5winvestment25th October, 2007

    Hello,
    My name is Neil Thakkar. I am a real estate investor in the Chicagoland area. What do you concentrate on?

  • kevinb550125th October, 2007

    i am just starting in the western suburbs getting ready to make my first offer

  • edmeyer25th October, 2007

    Mark (commercialking) has an investment group that meets at least once a month (They even let me join!). You might connect up with him and go to some meetings. You will likely find some who flip properties.

  • ICGPROPERTIES11th December, 2007

    We are Chicago based and we specialize in short sales, flips, and hard money deals. Good luck![ Edited by JohnLocke on Date 06/23/2008 ]

  • jfromchicago15th April, 2008

    do u wholesale?^^^

  • ICGPROPERTIES23rd June, 2008

    yes we do.

  • tunney30th June, 2008

    Thanks Guys !!! I appreciate the feedback. So I guess the credit offers havent been rolling in according to the Guru. He claims, with his program , you will be guaranteed 100,000 in credit lines in 1 year. Are you inc/llc. I think to join D/B you need to be inc.

  • cjmazur1st July, 2008

    I have PG on all but once of the credit cards/loc.

    I haven been offered non-recourse loans.

    In the extreme, It would not make send to buy GE w/ AAA credit and then have it reset.

    I think you need to distinguish between PG and business credit.

  • eespana5th July, 2008

    Thank you. I found your site 2 days later.

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