Wholesaling Is Illegal, Immoral, and Fattening!!! What Jerry Norton Is Doing About It Episode 1017
Is wholesaling on the path to getting banned? The argument against wholesalers has been gaining traction recently. Many realtors, and even the National Association of Realtors, believe that wholesaling should be shut down. Because of the negative perception, there has been legislation passed about it recently, with more potentially coming. Today I\u2019m talking with Jerry Norton about what this means for wholesalers and how it might be beneficial.
Why is wholesaling being looked at in a negative light? The NAR and real estate agents don\u2019t like that there is no regulation or licensing. They feel that some wholesalers are making unfair deals and not disclosing all the details. Some wholesalers aren\u2019t honest or forthcoming when it comes to deals, unfortunately, and that is what people are concerned about. They are also concerned about wholesalers making money on facilitating real estate deals; they believe this should done by licensed real estate agents.
To prevent wholesaling from being banned completely, we, as wholesalers, should take steps to create best practices, licensing, and a code of ethics. There needs to be a conversation, so we don\u2019t lose our voice. Wholesalers are important, bring incredible value to the market, and help move homes that may not be in the best shape. They are a marketing agency for a cash buyer, making the sellers happy. They can expedite the process of getting a home sold.
Four key points for wholesalers:
\u2014Have the intent to close on the deal.
\u2014Have the means (cash) to close on the deal.
\u2014Lay out all the options for the seller.
\u2014Disclose that you are going to make a profit on this deal.
These discussions around wholesalers and the potential legislation are a good thing. They are going to filter out the wholesalers who aren\u2019t doing above-board deals and giving wholesalers a bad name. As wholesalers, we need to raise the standard, be the voice, show the world that we operate with integrity, and provide benefits and quality to the market.
What's Inside:
\u2014Why does the NAR have a negative view on wholesalers?
\u2014Where you can get the money to close on wholesale deals.
\u2014If you are a wholesaler, should you get your real estate license? What are the benefits?
\u2014What is transactional funding?