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“Can I sell high-quality wholesale leads with my real estate LLC?” » Planlord® Vlog #3

 

So I like this question because I’ve identified three separate issues.

(1) Can I sell leads & the difference between what I call “public” vs “private” leads.

(2) How do I protect myself when selling leads from (unhappy) buyers?

(3) Is the purpose of my LLC broad enough to encompass real estate lead brokering activities?

Disclaimer: this is legal information. Not legal advice. For legal advice contact an experienced real estate attorney.

Disclaimer, this is legal information, not legal advice. For legal advice contact

Written synopsis for those who don’t won’t to watch the video.

(Just watch the video. I just threw this post together.)

So. I there are three issues in this question. Can I sell wholesale leads? (if you do it right, yes). (2) How do I protect myself when selling leads to end users. And (3) can you sell them using your real estate LLC? The answer is maybe.

#1 Selling Leads, and the difference between public and private leads.

So selling leads is what I like to call “lead brokering.” This is how Zillow and many other real estate websites make money. It’s legal for them to sell the information that they collect because the people that they collect information from have checked off in the terms & conditions that it is okay for them to sell their information.

So if you have one of those investor lead generation websites where you are gathering leads, then you need to have the appropriate terms and conditions. Feel free to contact an attorney such as me if you need help with the process.

Do not sell people’s information without first getting permission. It’s a bad idea.

#2 How Do I Protect Myself When Selling Leads From Unhappy Buyers

Same way you protect yourself when selling any product or service. With a contract outlining what the buyers can expect. Need help with a wholesale leads contract feel free to contact me.

#3 Can I Use A Real Estate LLC To Sell Wholesale Leads

Can I sell wholesale leads using my real estate LLC? The answer to this is it depends. Again, you can definitely sell things using an LLC. But the issue here is that if you registered the purpose of your LLC as a “real estate investing activities.” Then I don’t think that description adequately fits selling wholesale leads. That sounds more like selling marketing services than real estate investing services.

If the purpose of your LLC is for “any legal purpose” than yes, you can act as a lead broker. So the worst case scenario is you can file to amend your articles to encompass lead brokering activities. Which is something I can also help with.