224: Inside the New Law That Could Lead to a Nationwide Wholesaling Ban w/Gary Pickren
Description
Wholesaling real estate may be banned nationwide within a few short years. After a new law was passed in South Carolina prohibiting the practice, other states started to follow their lead, making their own laws that limit or completely restrict wholesaling real estate. Why is this happening now, and if a nationwide wholesaling ban does get passed, are there loopholes for wholesalers to still make money assigning properties? South Carolina real estate attorney Gary Pickren is on the show to explain.
Gary is no stranger to wholesaling. He’s quick to tell you how crucial wholesaling has been to his business’s growth. But Gary isn’t trying to dance around the new laws and pretend that everything will be alright for real estate wholesalers. In fact, Gary believes that this new South Carolina law could change real estate wholesaling forever, and it may even be for the best.
We’ll describe the new South Carolina law and the legal verbiage that spells out the wholesaling ban. Gary even gives a completely legal way of getting around the new wholesaling law, but the rules MUST be followed. If you’re a wholesaler anywhere in the United States, this law directly affects you and your livelihood. Not staying up-to-date on this could, at best, cost you money or, at worst, land you behind bars.
In This Episode We Cover
Wholesaling explained and why the practice is currently in jeopardy
The newest South Carolina wholesaling law and its monumental effects on the industry
Wholesaling “assignments” defined and the risk of marketing a property in the wrong way
Whether or not this new law could lead to a nationwide ban on wholesaling
Gary’s savvy way to get around this wholesaling ban through this one type of “contract”
Whether or not this new law applies to commercial real estate wholesaling as well
And So Much More!
Links from the Show
Join the Future of Real Estate Investing with Fundrise
Connect with Other Investors in the “On The Market” Forums
Subscribe to The “On The Market” YouTube Channel
A New South Carolina Law Would Severely Crack Down on Wholesaling
Wholesale Real Estate – What Is It & How to Get Started For Beginners
Is Wholesaling Legal? It’s Complicated
Jump to topic:
(00:00 ) Intro
(01:38 ) What is Wholesaling?
(05:33 ) Working Against Realtors?
(07:59 ) How Everything Changed
(13:52 ) The Real Problem with Wholesaling
(16:27 ) The End of Wholesaling
(20:33 ) Tricky Legal Language
(28:01 ) A Nationwide Wholesaling Ban?
(34:47 ) What About Commercial Real Estate?
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-224
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