In this episode of Coffee with Carl, attorney Carl Zoellner talks about a new Illinois law changing the definition of “broker.” This new definition now requires Illinois wholesalers to run their wholesale deals through a real estate agent or broker.
Updated July 23, 2020
Illinois real estate investors need to be aware of recent law changes expanding the definition of “broker.”
These new laws expand the definition of what it means to be a “broker” in Illinois. As a result, investors who wholesale in Illinois are now required to run their deals through a real estate agent or broker.
First off, these legal changes did not affect who is allowed to wholesale in Illinois. The changes do, however, broaden the definition of “broker” enough to affect wholesalers, too. The net effect is: if you’re going to wholesale (or sell) more than one Illinois property, a real estate agent or broker now has to be involved.
We don’t currently have a workaround for this new law. So, how can Illinois investors offset its impact? I would recommend active Illinois wholesalers (especially those with high volume) find a broker to run deals for a low flat fee.
Watch now as Carl breaks down a new Illinois law that changes the definition of “broker.” He covers this new law, how it affects wholesalers in Illinois, and ways Illinois real estate investors can lessen the extent to which this change affects their deals.
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