Wholesales in Florida, are you ready?

One of the many ways in which to run a successful real estate business in Florida is by wholesaling real estate. This is also commonly referred to as equity investments. Wholesale transactions can benefit sellers who need to sell their property quickly, because they are burdened by mortgage payments they cannot make, have inherited property they cannot manage, who want to scale down the number of properties they own, or for other practical reasons. Equity investors approach sellers and connect them with end-buyers who can close quickly on the sale and purchase of unwanted properties. During the recent financial catastrophe, a significant number of homeowners were approached by less than scrupulous investors, who were often misguiding sellers about their options in keeping or selling their property. As a result, the Florida Legislature released Florida Statute 501.1377. This statute regulates equity investments when the sellers are either in foreclosure proceedings or are delinquent on their mortgage payments. The statute requires a number of disclosures, agreements, and provides a rescission period for sellers when entering into agreements with wholesellers. We strongly encourage you to call one of the attorneys at LCO Law LLC to learn about how F.S. 501.1377 may impact your business.