Hey everyone looking for some guidance from people.
I have recently gotten my Realtor License in SC and NC as I live right on the line of the to states.
My broker is being kind of tough to deal with as I Love the Investing world and would prefer to go that route. I like having my license to be able to have access to the MLS and search for deals that way. As well as selling my properties myself that I flip. And also to be an agent for friends and other deals that present themselves.
Does anyone have any experience investing as an agent? My Broker didn't seem to understand what wholesaling is etc.
The company is Century 21 so they are a lot pickier with contracts etc. She said it has to be the state contracts and thats it. Basically their way or the highway.
I currently have a deal that I am signing for tomorrow and have my own contract written up that is totally legal just not the state forms and she says I have to use theirs and provide a bunch of disclosures etc.
Its really frustrating as their is so many more hoops to jump through.
Any help would be greatly appreciated.
@Landon Schlabach - Wholesaling is technically illegal - and it is a highly debated topic. Once you are licensed you have different rules to follow
Some states have approved contracts, so it isn't their way or the highway, it is what is legal and acceptable in that state. State laws also require specific disclosures.
This is all stuff that should have been covered in your licensing course
I hold a Brokers license but rarely take listings and work even less with buyers. Purchasing buy and hold rentals will set you up with a lifetime of income. I believe wholesaling could potentially open people up to a lot of various lawsuits and accusations and I really see no benefit in it. On my last purchase I obtained it for $50,000 under market value. Why would I take 10 or $20,000 and move on when this property will give me $10,000 a year income for the rest of my life.
To clarify @Brie Schmidt , wholesaling isn't illegal. Selling RE without a license is.
@Landon Schlabach there is nothing wrong with what you are wanting to accomplish. It just needs to be done within the parameters that are set by your broker, the Dept of Real Estate, and the association that you belong to.
The reason why your broker is pushing back is because he/she doesn't know if your contracts were properly vetted by a RE attorney. All of the association contracts and addenda have been written and approved by RE attorneys. Why would you need to look elsewhere for what has already been provided and fully vetted?
Also, agents doing their own deals can be E&O insurance liabilities as many E&O policies don't cover self-represented deals. I would say NONE of them do, but another BPer claimed that 1 or more do, so now I just state that MOST don't. In fact, mistakes made on a self-represented deal are often considered fraud, not an error or ommission. That is why they aren't covered. The issue here is that it isn't just YOUR butt on the line. Your broker's butt is on the line for every one of your deals too!
Keep in mind, if you (and your broker) ever have to go to court to defend yourself, the judge will hold you at a higher standard because you have a license. So, your contracts have to be PERFECT.
Funny story...when I went through RE school 21 years ago, one of the things that stuck out at me the most during contract writing class was "Write your contracts so the dumbest person in the jury box can understand them". There is alot of truth to that. I think Brokers get nervous when agents go rogue and create their own wording and so forth.
My suggestion is to come up with an addendum that includes all of the terms and conditions that you would like to add/change/remove from the Broker's RE contract for your deals. Let them get properly vetted for your use going forward. My guess is that if you at least agree on a standard form that you can use each time, the broker may be more likely to allow you to use it.
Then, after 3 years (or whatever the requirement is in your state) of being licensed, go off on your own. Get your broker's license. Then you can do whatever you want with your contracts.
Thank you all very much for your input. Hopefully things will work itself out and I will get more comfortable with everything and all will be well.
I highly recommend reaching out to local wholesalers and attorneys. You may be able to find some on the marketplace where they are listing properties in your area. Some may be licensed and know the angles to play.
I'm licensed and have been part of wholesale deals many times in my area. To learn how to do this I partnered up with other wholesalers and non-licensed people during deals in the past. While that sometimes leads to sharing profits, it's often worth it to have a local expert help facilitate, teach legalities and even find buyers.
Lastly, seek out a wholesaler friendly attorney. I have an attorney that understands the process in our area very well so I'm sure there are a few attorneys in your area that have done a ton of wholesale deals.
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