Virginia limits non-brokers to two assignable real estate contracts per year. Beyond that, you're doing unlicensed broker activity. The speaker contrasts simple assignments with double closings, where you get a loan to buy from the seller then immediately resell, and warns that boasting about profits from "selling a piece of paper" is equity theft.
Chapters
there's a trip, like a tripwire in Virginia that says if I do 2 of these a year in a 12-month period, then I— and it's no longer considered an assignable contract. And I can only do that if I have— I'm only allowed to do 2, period, in that time period, I believe. So on this situation, what would happen is I've got a $4.5 million contract, and then I've got a guy that I signed that with, and he's selling me the building. And then I've got another guy behind me who wants to buy it for $7 million. And all I would do then is just assign that contract on an addendum over to the higher buyer. And then at the closing, they would pay the seller his money and me the remainder. Right. And so that's called a double close. No, that's called an assignment. Okay. The double close is that I have to have money to close, pay off the seller, then I can sell it to my buyer, execute that contract. And bring that money into my pocket. So I need a lender to lend the $4.5 million to me to give to the seller. Then that guy on the other side that bought it from me brings his $7 million over. I pay off my $4.5 million and take out all the closing costs out of the remainder. And then whatever's left after all the closing costs and all the bills are paid is mine. So the best way it says to do it is to do a double closing. And the reason is because it says here, if a, if your second or more compensated assignable contract has been done in 12 months, it's treated as engaging in broker activities unless you're properly licensed. So 2, 3 months. So basically wholesaling, what is known as wholesaling, assignment of contract is 100% illegal beyond one. In the state of Virginia unless you're a licensed broker. And so there's this guy on TikTok right now I'm feuding with who, like, this is what he tells me: oh, I, I drive 14 Lamborghinis every day because I make $150,000 by selling somebody a piece of paper. Okay, well, you better have been selling that piece of paper at $100 million, because if you sold somebody's house and made $150,000 as a wholesaler, you should be thrown in jail. That's called equity theft. And equity theft should be punishable by law, and it's not. When you can lie to somebody to their face and get them tricked into believing that most they're gonna get is $300,000, and you turn around and sell it for $500,000 on a piece of paper, you didn't do no work to do it. You just went to the closing office and said, here's this paper, here's this paper. You signed one, signed the other, and walked away with $150,000 in your pocket. You're a snake and a thief.
