Posted on: March 30, 2022
WI 918 | Real Estate Laws

 

 

Are you looking for fresh ways to generate real estate leads? Well, then you’re in the right show!

Today’s episode is short, yet; we’re going to learn how to monetize dead leads and become the business leaders we aspire to be. Chris Craddock teaches us to go from real estate beginner to straight business growth. Learn how a law can make or break your real estate business, how to operate legally, and make sure that you get paid every time you hear that phone ring!

Operating Safely – The Importance of Knowing the Real Estate Laws in Your State

Are you looking for fresh ways to generate real estate leads? Well, then you’re in the right show! Today’s episode is short, yet; we’re going to learn how to monetize dead leads and become the business leaders we aspire to be. Chris…

Before we get started, I want to tell you about Wholesaling Inc.’s tool of the month for the month of March, and that is REsimpli. It is the best all-in-one CRM platform we have ever seen, but the best part is REsimpli is not just an incredible customer relationship manager. It also provides you with a ton of other features like skip tracing and list stacking. They have their own phone system built into this thing. You could do drip campaigns like following up with motivated sellers with automated texts, emails, ringless, voicemail, and even direct mail campaigns.

These guys even have their own driving for dollars app. This is truly a one-stop solution for all of your business needs. You could probably eliminate monthly payments on at least 5 or 6 different tools. Maybe even more and save a bundle without worrying about hopping from platform to platform. This is all under one roof and it is one of the best software solutions we’ve seen to run your entire real estate business.

For a limited time, if you go to REsimpli.com/WholesalingInc, you will save 20% on your first month. To take advantage of this incredible discount, again, head over to that website and stop wasting time jumping around on ten different platforms. Start spending your time where it counts, like doing more deals. Let’s get into the show.

You’re like most investors. You are spending so much time, energy, and money to find people that will raise their hand and say, “Yes. I want to sell my house in the next six months,” only to find out 19 out of 20 of them are going to sell to somebody at a much higher rate and someone’s going to get paid, it’s just not you. The focus of this show is learning how to make more money with what you’re already spending. How to maximize every lead that comes in the door? How to make sure that every time the phone rings, you can get paid? With that said, let’s go through this and figure out how to build a seven-figure life.

I am so excited to be back here with you, talking about how we can make the most out of every opportunity that we have. How do we monetize all of our dead leads? How do we grow our business? How do we become the business leaders that we’re aspiring to be? All of that is massively important. Those are things that we’re always talking about. I want to slide a little bit over from straight business growth to something that everybody needs to be looking at. Wayne Gretzky said he was the best in the world not because he skated to where the puck was but because he was skating to where the puck was going to be. We got to keep an eye on what is coming.

The name of this company is Wholesaling Inc. We deal with everybody in the world of investors, but especially wholesalers. What’s happening now is a little bit crazy. Illinois has a law that you have to be licensed in order to wholesale real estate and Oklahoma just passed the law. The legal term for wholesaling real estate is you are selling equitable interest to the property. By selling the contract or paper, you were selling the equitable interest to the contract. You’re not selling a house. You’re selling a contract.

What has happened is, states like Illinois, Oklahoma, and Nebraska just passed a law as well, LB892, which requires wholesalers to get licensed to sell. I’ve been told that South Carolina has either passed or is about to pass that law as well. Also, I was informed that Michigan has a law that if you do more than five, they apparently don’t enforce it. They do have the law on the books.

When it happens once, it’s a mistake. When it happens twice, it’s a choice.

Other states are enforcing it. If you wholesale real estate without a license, you are selling real estate not being licensed, which is a criminal offense, and they could come at you hard. What does that mean for us? What we’re looking at now is knowing that NAR, the National Association of Realtors, which I am a part of, that if you’re a licensed real estate agent, you ended up being a part of that. They have their sight set on wholesalers and a lot of states more so than others.

We also saw what happened with PropStream. They lost their data partially because they weren’t supposed to have access to data that they had access to. When they sold the company, the company that bought PropStream was alerted to the fact that they had data they shouldn’t have had access to, and now it’s made NAR, National Association of Realtors, aware of it.

Frankly, the wholesalers are now in the sight of states and realtors, and part of that for a good reason. I’m going to be honest here. A lot of wholesalers have to jump out and I’m with this too. I love massive imperfect action, but at some point, if you get massive imperfect action and you’re not educating yourself and you screw people over because you didn’t know how to perform or your contractors bad, or whatever, you’re going to give our industry a black eye and bad name.

That’s happening and we all know people like that, and let’s be honest, some of you are that person. I was at one point. I say, no judgment, but I’ve got a little bit of judgment because we’ve got to be leveling up, but I was that person too. If you are that person, you’ve got to know that if you stayed that person and you’re not reading to shows like this, which by the nature of reading this episode, we know that you’re somebody that’s leveling up, but you’ve got to be leveling up. If you’re not leveling up, then there’s no excuse for it. It happens once, it’s a mistake. It happens twice, it’s a choice.

WI 918 | Real Estate Laws

Real Estate Laws: The legal term for wholesaling real estate is selling equitable interest to the property.

 

With that said, it’s coming because even if it’s not you, it’s somebody that is doing very bad business and they may not be malicious about it. They may not intentionally be trying to hurt people, but people are doing bad business left and right hurting people. It’s getting reported to governors’ offices and legislature and all that. Just know that wholesaling is in the sights of everyone.

We’re going to be rolling out our Wholesaling Inc. option, the way that we’re going to solve this problem for everybody that is a wholesaler. In the meantime, if you are looking for options, if you’re trying to figure out what are the ways to go forward, I’ll tell you one is you can do transactional funding, which means you’re going to have to close on every single property in order to sell it.

You get transactional funding and it does cost money. There are ways to do it without the cost of money if you’re selling to cash or hard money lender, but if you’re selling it to any buyer or if they’re not selling with cash, they’re going to have a hard time getting that pass-through money. Some title companies will allow pass-through money to happen when they shouldn’t, but the only way transactional funding pass-through money works is if they have permission from the person that is providing the cash as the purchase to be the pass-through to allow them to use it for a short period.

You need to understand that the people you go into business with will impact what you’re doing. 

If they don’t have that permission, the title company is doing something that could get them into a lot of trouble. Understand that that is a very real thing. Sometimes title companies have an escrow where they provide the transactional funding, which is totally fine as long as they’re not coming for your funds, but know just because it’s a title company doesn’t mean they’re not going to do the wrong thing. If they do the wrong thing, you also could be getting in trouble. You also need to understand that the people you go into business with will impact what you’re doing. That’s the first thing.

The second thing is to be ahead of this curve. A lot of people are going to need to get licensed as real estate agents. If that’s something that you are interested in doing, I’m in the Wholesaling Inc. Facebook group. You send me a message or on Instagram @CradRock and I’ll get you set up. Wholesaling Inc. is going to have something that we’re going to roll out here shortly that explains ways that we can move the whole tribe forward, where we can also get a massive benefit to everybody in a way to be ahead of the curve here.

Those are some of the thoughts and things we’re working on. Those are some of the things that you need to be aware of. This is coming. I don’t want you to be blindsided. Frankly, if you’re not paying attention to it and it happens in your state, and you continue to wholesale without a license when they tell you, you need a real estate license, and you’re not doing a double close, you are committing a crime. They will come after you and you don’t want to be the poster child.

WI 918 | Real Estate Laws

Real Estate Laws: Just because it’s a title company doesn’t mean they’re not going to do the wrong thing.

 

They’re going to come down hard on somebody and you don’t want to be the poster child for that. It’s not what you want to have to happen. With that said, stay tuned and watch what we’re going to be doing. We are looking to create a system and opportunity for everybody that you can get ahead of this curve and make some money doing it.

With that said, if I can do anything to help you here going forward, please let me know. I want to make you aware of what’s going on now. If you’re looking to monetize your dead leads or get a real estate license so that you can monetize those leads, get on my site, ChrisCraddock.com, click apply, let us look at your business, and see what we can do. I’ll help you get licensed and set up, and I personally will do that. I’m going to help you get your business moving so you can monetize all the leads that you have. Until next time, go out, kill it, live uncommon.

 

Important links

 

About Chris Craddock

WI 886 | : Leveling Up - 3 Steps To Changing Your Financial Temperature To AchieveA nationally certified Life Coach with a Doctorate in Leadership, Chris Craddock is the driving force behind REI Revive, the host of the Uncommon Real Estate Podcast, a Realtor, and an entrepreneur who runs multiple successful businesses in the Washington DC Metro area (and Richmond, VA). Chris is a consistent NVAR multi-million dollar producer who produces over $4 Million in commission each year.

In 2020, his team, The Redux Group, was #20 in all of Keller Williams and sold just under $160 million in volume. Chris has been married for 20 years and is the proud father to six beautiful children.

Leave a Reply

Your email address will not be published.

[class^="wpforms-"]
[class^="wpforms-"]