RE License to help with investing?

Question

I am looking into getting my real estate license in Iowa. My husband and I currently invest in rentals and rehab projects outside of our day jobs. Would having the real estate license and investing be a conflict of interest in anyway and prevent us from some deals? I know there are times where banks will list saying realtors can't bid but other than that could it be a problem?

Jared DeValk · Answer

Jodi, if you're related to a principal in the company (LLC) or you are a principal in the company, you must disclose that in TN. I would check with your broker, but more importantly your RE Attorney. Unless it would hurt a deal, I would disclose it in writing every single time. You know, CYA...

Jennifer Lee · Answer

Thank steve 
I do ;) I've been keeping a log for 3 yrs now of my real estate activity.

Steven Hamilton II · Answer

Jennifer Lee,

Do not forget that you have to put at least 750 hours in real estate and YOU have to have more hours in real estate than in any other activity.

-steven

Jodi M. · Answer

Jared, thanks I checked with a broker and was told I'll have to disclose that I am related to the owner of the LLC. Since most people won't ask how I'm related or care so it shouldn't be a problem.

J. Scott, I will check out those other discussions, thanks.

J Scott · Answer

Folks,

This is a VERY common topic here on BP, especially over the past few months.  I highly recommend anyone interested in the topic do a search for recent threads...a lot of them have had great discussions...

Here are a couple:

http://www.biggerpockets.com/forums/84/topics/70385-should-i-get-a-real-estate-license

https://www.biggerpockets.com/forums/12/topics/78331-getting-a-real-estate-license

Ned Carey · Answer

Jamal, That is what I do. I gave up my license recently and became an assistant to my business partner who is still an agent.

When i was an agent I hated all the formality and paperwork just for the sake of paperwork. I feel like it's a case of "We don't know what we are doing and don't understand the law so let's make up for it with paperwork"

Jamaal Hunt · Answer

That what got me interested it'll be alot easier to do this. Here in the MD marketplace one can be a "personal assistant" and gain access where they'll pay a much lower amount. Would that work?

David Niles · Answer

I would double check on what you have to disclose and in most cases would disclose just to be safe, its not like your hiding anything or someone wont buy because your related to the owner / company.  Real Estate laws are crazy about everything being "arms length" transactions and you being that close to the owner you might want to disclose.  
All my rehabs are in my corporate name and I disclose in private remarks exactly what is what.

Jennifer Lee · Answer

I'm hoping that my license will help me ;)

I'm just passed exam lol not at DAY 1 yet, that's tomorrow

But I chose to get it after posting here and getting a lot of positive feedback.

To explain my previous post :
If I didn't get my license, and sold my current investors flip....it would have been done for free.I cant deduct any of it. (Our tax situation, long story short)

I was told by my CPA is I become realtor I can deduct the expense against my realtor income as independent contractor.

Also luckily I have POA power attorney,  otherwise I can't property manage w/o broker license...a salesperson license is not enough in PA.
So if my investor decides to rent I can't get compensation unless they directly employ me.  They are out of state investors.

This is a family deal, I wasn't looking for compensation but a way into the market. Get a new team in new location. We just moved here...starting over again.

And I have another investor waiting if I'm successful...and I'm not interested on making money for everyone involved but myself.

I signed with big box brokerage but like the previous posters AS A TOOL FOR MY OWN REI.  And told them so in my interview,  but I don't mind being a realtor in future is opportunity arises.

Hopefully I have a more definite answer in future.
But so far, although the class doesn't help me as investor it helped me understand real estate 101. No regrets thus far