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Wholesaling real estate is a great way to make money in the industry. But do you need a license to wholesale real estate?
No License Required
The good news is that you do not need a real estate license to wholesale. Since you are not listing properties on the market, you do not have to worry about any license requirements or fees.
Are You a Real Estate Professional?
The only thing you need to establish is whether or not you are a real estate professional in the eyes of the Internal Revenue Service. To determine this, answer the following questions:
- Are You Experienced in Real Estate? Have you been investing in real estate for some time, or do you have substantial knowledge in the industry?
- Do You Spend 750 Hours a Year? Do you spend at least 750 hours a year actively participating in real estate activities?
- Do You Make Money? Do you make a significant portion of your income through real estate activities?
If you have answered yes to any of the questions above, then you may be classed as a real estate professional. This means that you can deduct your real estate expenses on your taxes, just as if you had a license.
Be Responsible
Wholesale real estate is an exciting and potentially very profitable field, but it’s important to remember to be responsible. Do your research and make sure you fully understand how it works before getting started!