How many flips in a year?

Question

We are brand new to the real estate game, and have been researching the filpping, and investing. Have many dreams about the future, but our realtor told us today that we can only have 4 transactions a year without a realtors license in the state of MN.

Can anyone here speak to this?
Thanks!

Can anyone here speak to this?   
Thanks!

Michael Quarles · Answer

J Scott.

Reread the post and definition.

Michael Quarles · Answer

Bryan there has to be more to that.

I would be interested in knowing if you're an agent or broker and what the definition of a Principal is.  And then is the a penalty for doing so?

Michael Quarles · Answer

I don't know your state laws however I've never heard that it would be illegal to buy and sell a property as long as you become a recorded owner.

And I've bought a bucketload.

I've learned that most realtors don't understand investing.  Find one who does

Gary Schmalz · Answer

Thanks folks.  That info was very helpful and the problem was solved.

Mike Osterman · Answer

If you assign your contracts your name won't appear on any recorded document. You can also create LLCs or use land trusts to hide yourself.

J Scott · Answer

Yes, this is what I was suggesting above.  As long as he is represented by a broker in his transactions, there shouldn't be any issue selling as many houses as he'd like.

Brian K. · Answer

Michael Quarles there could be but that is what I know.

Principal is the buyer or seller who has employed someone to act on his behalf.

In MN I'm sure there is a penalty but I don't know what or how much.

Brian K. · Answer

Gary Schmalz, A person shall be presumed to be engaged in the business of selling RE if the person engages as principal in [b]five or more transactions during any a 12-month period unless the person is represented by a licensed RE broker or salesperson.

You can get dealers license and pay the state a fee to get around it.

Talk to RE Attorney or other Broker, Realtors.

J Scott · Answer

I would speak with a real estate attorney in your state.  My guess is that your agent is misinterpreting a statute, and that there is no issue with you doing more than 4 flips per year...the statute likely has to do with you selling more than four houses per year without using a licensed broker to represent you.

But a local attorney should be able to give you more information...