I’ve been running a real estate wholesaling business from my home in Bend, Oregon for years. It’s beautiful country here and it’s easy for me to get to all the major cities, not to mention the smaller towns and rural areas. Speed is always crucial in wholesaling. About the only time I pause is when people ask me, as they often do, if wholesaling real estate is legal in Oregon.
The answer to that always starts with a long, deep breath.
It’s not that I don’t know the answer but it is always best to get your legal advice from a good local real estate attorney. I’ve known a lot of people who get into this business thinking they just have to move contracts around and then find themselves entangled in miles and miles of red tape—or potentially worse. Obviously, with efficiency being key, this is not a great state of affairs for them.
Luckily, there are ways to effectively wholesaling real estate that get you out of the gray areas and into the light. It takes some work but, by building the right investor networks and avoiding legal risks, you can save time, money, and red tape. And, save me some breath.
Understanding Whether Wholesaling is Legal In Oregon
Before writing this, I played a game. I asked my nephew to do some quick research on whether or not it is legal to wholesale real estate in Oregon. I even sent him to the relevant statutes. An hour or so later, he told me that he was more confused than when he started.
The confusion stems from the way we talk about wholesaling houses. There are two main methods that folks generally go about this:
Double closing: Personally closing on a property then immediately selling it to another
Assignment of contracts: Putting a property under contract then assigning it to another investor.
Assigning contracts is where it gets a little unclear for most people. Some investors have used this strategy for a long time, but many states tend not to like that anymore. You should check with your local real estate attorney for the best advice on how to move forward legally with assigning contracts in Oregon.
Some Of The Dangers of Assigning Real Estate Contracts In Oregon
One thing that some investors do is to try tinkering around the margins and see what they can get away with. They might take a quick online class about real estate investing, paying a few grand for someone to tell them how to “get rich quick.” Of course, those classes almost never have local laws in mind.
They are usually some wholesaling guru who is going to get you pumped up. But that enthusiasm generally doesn’t stand up when it comes to following the relevant statutes. If you’re going to take any class, make sure you talk to a real estate lawyer to combine the guru’s motivation with some actual state law.
Now, the law doesn’t stop you from buying a house and closing on it, then turning around and selling it. In that case, a house is like anything else you buy. If you have a buyer, you can sell most anything, even if you just took ownership today.
The Best Way To Wholesale Real Estate in Oregon
Some people have a lot of rules when it comes to real estate investing. There is even a famous “formula for wholesaling” which doesn’t really hold a lot of water here in the real world. For me, it comes down to being able to move fast and have a network of ready buyers. That’s why the best move I ever made was to become an independently owned and operated HomeVestors® franchise.
With HomeVestors, I am plugged into a network of local HomeVestors franchisees, and other professional investor-buyers through the proprietary DealVestorsTM platform. These are people who are eager to buy the right property. Using the talents I’ve developed over my career, qualified leads I receive from the trusted national brand, “We Buy Ugly Houses®” and from being a HomeVestors® franchisee, I can find great houses, negotiate purchase contracts and list them on the website.
I can find investors wanting to buy as soon as I close. I don’t need to move paper. I can get the house and turn it around. Whether or not you have a broker’s license, you have a network of local HomeVestors® franchisees and other investors to sell your properties to and you are out of the gray area. Your business operations are as clear as the air here in Bend.
If you want to wholesale legally, ethically, and efficiently in Oregon, request information about becoming a franchisee today.
Each franchise office is independently owned and operated.