Show 97: How the Illinois Wholesaling Law impacts Real Estate Investors.

Peer 2 Peer Real Estate's podcast

English - October 02, 2019 10:00 - 12 minutes - 17.4 MB - ★★★★★ - 12 ratings
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Previous Episode: Show 96 New Rental Laws Has Landlords Scrambling For Answers with Eric Michael of Nova Property Management

Next Episode: Show 98: From Breaking The Law To Successful House Flipper

For those who might not know, Illinois has enacted a new bill on Wholesaling. (See Below)

New law signed by Illinois Governor J.B Pritzker .

"Wholesalers Require Brokers License in Illinois. For any person, or entity, engaged in the business of Wholesaling real estate, you cannot wholesale more than one deal a year. ... The revision to the Licensing Act has been signed into law and has taken effect.Aug 14, 2019"

What is a Wholesaler to do?

With the new law being in full force in Illinois , and in all probability being enforced in most states if not all, A wholesaler business model should include a realtor on their team, or get licensed themselves to comply with the law.

Under the law, you are allowed one wholesale deal per year, unless you make $100,000 on that deal, it's best you get your license or partner with a realtor.

Working Together

The National Association of Realtors (NAR( is a powerful force, they see any non-realtor involvement as taking money from their pocket, possibly true, but then it's up to the realtor and investor to work together, and for the realtor to be open with working with investors, It all comes down to educating NAR members on real estate investing.

Conclusion

I think overall it's not a big deal, If investors get their license they will be adding to their own tool box of real estate education, and it's not so expensive to get your license anyway, depending on what part of the country you are from, for example in Illinois, to get your real estate license costs $180. The Illinois broker exam costs $55 and aspiring brokers must also pay a $125 license application fee. In addition, applicants must take 90 hours of pre

licensing courses, which cost $500 on average. This is a small investment to make, and like I said before, it's adding to our own repertoire of education in the business.