OfflineHi. I have been searching the site for this answer, but can't seem to find it. If you have your RE License (possibly even your Broker's License) can you use the strategies for yourself? I thought it would be okay, but based on a few things I've read it seems there may be some legal ramifications. Just wondering if anyone has any insight on this topic. Not sure if it matters, but I am in California.
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You are entering murky waters there my friends however I ( was previously a licensed realtor) was a realtor and I would say this if you already are a licensed salesperson /realtor or broker..... I would use the MLS for research on properties as mentioned In The book however use another party as a realtor for the transaction, 2nd disclose you are a real estate agent if you are licensed and clearly state your position in the transaction as that of the buyer or seller depending which side of the table you are sitting.....
Remember we are dealing with money and law. And the majority of lawyers are either litigationally inclined or averse to these situation.
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
I know investors who got their realtors license but they do not act as a realtor and the investor. One guy just keeps his realtor license open so he can have access to the MLS for research purposes. Like the guy mentioned above, I more than like for sure there are some laws that will not let you act as the realtor and the investor. So to answer your question just use another realtor to assist you.
Reynold Orozco
I am an agent. What I do is put on an addendum that I am a licensed agent and I intend to___ (whatever I intend to do flip, wholesale...). That way the seller can't come and say I took advantage of them for my own personal gain.
I believe in full disclosure. That way it is fully documented. There is no he said she said.
Thank you guys for the comments!!!! I don't have my license yet, but had planned on getting it to, 1) Have access to the MLS; 2) Save on the fee; and 3) Be able to help other investors with their transactions. However, I'm definitely leaning towards not doing it at this point. I really appreciate all the advice.
The no money flip class has a lot of great ingredients from Insider Elite (which is DG on Steroids ) plus the latest techniques you truly have everything you need in this course. Good luck ! And hopefully we can read along if you decide to create a real estate journal
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
How does your broker feel about you using brokerage resources relating to your deals. Does the broker expect any sort of commission?
Hey TRSD! I am not a Realtor yet. I am in the studying stages at this point and am trying to decide if I want to take the next step and get licensed. I definitely wouldn't utilize the MLS or any other resources without getting a commission. I do understand there are legal ramifications to that. I was more confused about if there are any issues with me being a Realtor and doing deals in my name.
i am in ca too & I have spoken with a couple of agents & my friend who is a broker & they all said you could represent yourself as the buyer you just had to disclose it.
Also they told me you could (if your broker is willing or you are the broker)not take commission for your offers so your offer would be more tempting. And that there was no prob with being an agent/broker, in fact the contrary-more helpful, you cold also take listings, represent buyers etc. & make more money.
With the exp I have I could get my license if I wanted to & it would super helpful but at the moment I am just focused on wholesaling & having agents work for me or get access to the MLS thru a service or a broker so I don't need to get my license right now it would be distracting-you have to study for that too & I would rather study on how to do more wholesaling like Matt:) he is not an agent & he is doing pretty well.
Donna Britten is a broker now & she is using her license to get deals etc. So no worries if you want to get it fine you can yiou just have to disclose it to everyone I dont think it would hurt you but it would distract from wholesaling.
Tony
Go faster do more! GFDM!
That was very, very helpful. Thank you so much for the response and the information! I really appreciate it.
My broker doesn't care. If I am buying a listed property, he will get his cut when I complete the purchase. If I relist a flip property, he will get his cut then as well, when it sells. In fact, he has substantial investments himself.
I've heard of some brokers who don't support their agents being involved as an investor or working with investors. I have been fortunate enough to not work with any of them.
If my broker did have a problem with what I do, I would leave that brokerage.
You can always get your brokers license and open your own brokerage. That way you would never have to deal with it.
Whatever you do, as long as you follow the laws of your state, regarding your license, you shouldn't have any problems.
One other thing. If you buy a property that is listed, you will get a commission along with any assignment fee, or profit if you flip the house. That, many times, adds to your profit.
Thank you so much! I am looking into doing my broker's license as well to by pass that issue. One question, how do you deal with listing yourself as an agent if you found the home outside of the MLS? I assume you don't have to get a commission/share a commission at that point, correct?
Jbezoski...say you are doing floor duty and someone calls in to the brokerage and wants to list their house. You answer the call and say "I know an investor who is looking for just that kind of house." You put it under contract and assign it to your end investor for $10k. Your broker is ok with you doing that and not paying him anything? After all, the broker pays for the advertising and overhead to generate business, if you are utilizing the resources of his marketing and brokerage, shouldn't the broker be compensated?
I would still disclose everything. As agents, we are under a bit of a microscope. I wouldn't leave anything open to challenge.
I'm pretty certain you have to disclose that you are an agent in any transaction and advertising, at least in my state.
I don't do floor time. It isn't asked of or required at my brokerage. I wouldn't do it if it was. Pretty much a waste of time.
Having said that, why not take the lead and list it and then buy/assign it. Even if I didn't list it, I really don't think my broker would have problem with it. If he made noise about it, share the assignment fee with him.
As I said above. If you have a good broker, or own your own brokerage, none of these things will ever be a problem.