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EP 175: Is Wholesaling Illegal in Illinois? The Truth Behind The New Law & What It Means for Investors

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Is Wholesaling Illegal in Illinois? The Truth Behind The New Law & What It Means for Investors

It doesn’t matter if you’re an agent or investor. You’ve got to add more value. If you can figure out how to add more value, then it shouldn’t be hard for you to succeed.

Daniel DiGiacomo

Let’s welcome back a returning guest and one of my all-time favorite dudes, Daniel DiGiacomo.

Daniel is a pro when it comes to building a buyers list and adapting to a changing market. He started in real estate about 10 years ago as a landlord and is now dominating the Baltimore, MD market in wholesaling.

Today, we talk about the brass tacks on the recently passed legislation in Illinois affecting wholesalers. “Is Wholesaling really illegal in Illinois?” “What’s this mean for me as an investor?” and more… Listen in!

Read the Full Show Notes Below…

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Is Wholesaling Illegal in Illinois? Learn More About the New Wholesaling Law: SB 1872 – The Real Estate Licensing Act

A few weeks ago, Illinois had a rewrite of SB 1872 – The Real Estate Licensing Act. While many topics were addressed under the rewrite, wholesalers were surprised to find out that they would now need an Illinois Brokers License to continue to wholesale houses. This means they would need to complete the required education, pass the exam, and be sponsored by a managing broker – all new things for many local wholesalers. 

At Carrot, we saw that some people were disgruntled by this change. We even had a couple of members pull the plug on their sites because of it!

In my conversation with Daniel, we talk about how the business of real estate is always changing. It is the people who are willing to adapt who are going to be successful.

Being able to shift and add value will separate you from the competition. If you aren’t able to learn the laws and properly report, maybe it’s not the right path for you and you should find something that you are really excited about, no matter what the requirements are! 

How to Build Your Dream Team 

One of the biggest struggles investors have as their businesses grow is building a team. Scaling is hard. Many entrepreneurs struggle with this part of their business. It’s only when they have become a bottleneck that they say, “hey… maybe I should get some help!” Doing everything on your own, especially those day-to-day tasks that take up so much of our time, can keep you from innovating and your business from growing. 

Related Resources: 3 Ways to Build Healthy and Productive Habits

At our most recent CarrotCamp mastermind, we discussed a delegation framework. Delegation starts with tasks and putting the right processes in place in order to get the tasks done properly.

Next, you can begin to delegate entire projects, then planning, decisions, and eventually results. As the CEO, you should be involved in all aspects to some degree – but most importantly, always retain the role as visionary.

When you are building or scaling your company, start delegating your tasks, developing processes to get them done!

Let go of the idea that having someone else do it will cause the task to suffer. Things don’t always have to get done exactly as you would do it!

Learn to let go and when you have the right people in place, the wheels will all begin to turn! 

**Neither Daniel or I are attorneys! This podcast was created to share information to motivate you to get out there and conduct your own research! **

Follow Daniel:

Daniel’s Carrot site: Baltimore Wholesale Property

Daniel DiGiacomo on LinkedIn

Mentioned in this episode:

Daniel’s 1st CarrotCast Episode: Text Message Marketing + Mindset of Managing Your Business With Daniel DiGiacomo

CarrotCamp – The ultimate mastermind for real estate investors and agents

We want to hear your thoughts on the podcast! Drop them in the comments section below or hit us up on Facebook or Instagram

Trevor Mauch

Trevor is the CEO of Carrot and knows a thing or two about inbound marketing and generating leads online in the real estate industry. As an investor himself, he's generated tens of thousands of real estate leads and is a leading expert in inbound marketing for investors and agents. In addition, his true passion is helping entrepreneurs grow businesses that truly help you live a life of purpose.

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5 responses to “EP 175: Is Wholesaling Illegal in Illinois? The Truth Behind The New Law & What It Means for Investors

  1. It’s always interesting to see the differences in laws, wholesaling and assignments from one place to another. Realtors in my neck of the woods would never be allowed to tie up a property themselves to wholesale it out without full disclosure – and any profits would have to accrue to the seller. And you cannot represent both the seller’s interest and your self interest. Total contravention of agency and disclosure laws here. Heck we’re not even allowed to double end a deal. So how Illinois intends to do this is interesting, because essentially from my perspective, they are prohibiting the seller from selling to whom they wish.

    1. I am from Illinois, what state are you from? Illinois is different. The change has affected many wholesalers. The remedy is 1) to buy the property in your name and sell it immediately, in other words double close on it. The law in Illinois does not prohibit that, and I would be very surprised if any state would disallow that. 2) Get your real estate license and comply, then you can wholesale with proper disclosures. This is allowed in Illinois.

    1. Hey Mark! Trevor doesn’t have an official framework drawn up yet. But, essentially the order of delegation as you grow is 1) Tasks 2) Projects 3) Decisions 4) Planning 5) Vision (your role as CEO)

      Hope this helps!

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