Interesting legislation is being proposed in Philly…
First, Allan Domb is a Realtor and the proposer of this new regulation, big shocker there.
This legislation would require a “Wholesaler License” and background check to look for fraud, dishonesty, deceit, or violation of ethics laws.
This means that many wholesalers better change their tactics; clearly, there have been some antics happening in Philly to draw attention to wholesaling. When you focus on finding houses for buyers and NOT buyers for houses (playing Realtor) you can avoid scrutiny
When wholesaling, make offers and not estimates of values, after all, your job is not to appraise the house, it’s to flip the contract. This new law is basically assuming wholesalers are misleading sellers about the value of their home, which is completely avoidable. Instead of haggling back and forth on a purchase price, focus on only discussing the net proceeds to the seller, after closing costs and mortgages are paid (if applicable). This way you are discussing a significantly smaller number which means less emotion on the seller side. By discussing seller net, you are NOT discussing the value of the property, after all…only appraisers are supposed to guess at value right?
Listen in this week as I dive into the nuts and bolts of these proposed rules. -Typical valuation tools do not allow for the condition of the property or the condition of title or circumstances surrounding the sale. High risk means lower prices.