The legality of wholesaling depends on a lot of factors.
It can be perfectly legal if done correctly, or in violation of the law if done in correctly.
So our we turn to a few videos that an Ohio Attorney and Real Estate Investor Jeff Watson has created. In Ohio, the powers that be are working very hard to make Wholesaling Illegal or at least to harass the wholesalers until they give up. They have turned to Jeff Watson to combat the harassment and to determine exactly what is legal and what is not legal.
These Videos Below are in regard to Ohio, which is very similar to most other states.
To stay legal Jeff recommends that if you can, buy the house and then market it.
If you can’t buy it, then you only own a contract (be that an option or a purchase contract) that you can market and that will mean you don’t use addresses or photos to market, but instead you market your contract.
First Video is Contract Red Flags
Second Video is Earnest Money
Third Video is Marketing No-Nos
Fourth Video is Referral Fees