224: Inside the New Law That Could Lead to a Nationwide Wholesaling Ban w/Gary Pickren

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 10 June 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

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 Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market 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 James' BiggerPockets Profile James' Instagram Kathy's BiggerPockets Profile Kathy's Instagram Property Manager Finder 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 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Is wholesaling about to become illegal?
0:03.3	Some people think that a new law in South Carolina could pave the way to outlaw this type of real estate and transaction.
0:09.6	This and more on today's show.
0:16.9	Hello and welcome to On the Market.
0:19.6	I'm Kathy Fedke and my co-host today is none other than James Dainer.
0:23.7	Welcome, James.
0:24.5	I'm so excited.
0:25.5	We get a run point today on the show.
0:27.7	I know.
0:28.5	I'm even more excited about the topic.
0:30.4	Wholesaling obviously has been a big business for the last four years and it's changed a lot in the last four years.
0:36.5	And now there's a bunch of regulation
0:37.7	changing how it's going to go down. So I'm definitely excited, long-time wholesaler, long-time broker,
0:43.3	and things are about ready to change for us all. I'm going to blame social media and just the
0:48.4	internet in general because so many gurus and people are out there teaching wholesaling,
0:53.7	so it's become more public.
0:55.7	And of course, when it becomes more public, it gets the eye of the regulators.
0:59.7	And that's where we are today.
1:01.5	So there is a new law out of South Carolina that's cracking down on wholesaling.
1:06.4	There's been a lot of buzz on the Bigger Pocket's forums about this.
1:09.6	And our blog team even reported on it,
1:12.0	so we decided to make it a show topic. We're bringing on Gary Pickren, who's an attorney and
	...

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