While there are no “wholesale” police, the real estate commission is keeping an eye on what real estate investors are doing. In an effort to keep wholesalers acting in a legal manner, they are reaching out and slapping people’s hands when they do something wrong. This is mostly in the form of a letter telling them to cease and desist. But they are watching you, they are members of the Facebook groups and other investor groups online. They come to our meetings. They are signing up on your email lists. All to watch what you are doing.

So Is Wholesaling Legal?

In Kansas and Missouri, wholesale is still legal, but as we as an industry do things that violate real estate license law, they are pushing more and more to create wholesale licensing and then we will have a wholesale police. We would rather keep things as they are as real estate license law applies to everyone, not just real estate agents. Having a real estate license needed to wholesale would just make things worse.

We bring you this blog post to make sure you have the knowledge you need to keep your wholesale business on the up and up.

Back in 2019, one of those cease and desist letters from the Kansas Real Estate Commission prompted a meeting with local attorney Julie Anderson from Anderson and Associates. We had about an hour consultation with her on what we can and can’t do when we are wholesaling property. We recorded that meeting and what applied then is still the law of the land in Kansas and Missouri now. We highly recommend you watch this video if you have never seen it and quite possibly even if you have seen it you might want to watch it again.

To connect with Julie Anderson and her team, visit her website at www.MoKsLaw.com . Her forms page has a wealth of information and forms for landlords in particular.

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