Is having your RE License and an LLC compatible?

Question

Hi.  I’ll be retiring from the corporate life in April 2017 and excited to start a second career in REI, most likely flipping.  I live north of Atlanta and initially plan to focus on north Cobb County.

I plan to get my Real Estate license.  My understanding is that I’ll need to find an investor friendly broker.  From what I’m seeing on BP, that will take some effort but it seems doable.  (any feedback or recommendations would be appreciated…)

I’m also interested in creating an LLC for liability protection.

My question is: If I get my Real Estate license and find an investor friendly brokerage, how would the fact that I have an LLC be viewed.  Is there any fundamental incompatibility there?  Any conflict of interest?

If being associated with a broker and having my own LLC are not compatible, will I have to make a choice between the two?

Thanks in advance,

Mike

Ari T. · Answer

Hi Mike, Great question. I am an investor and also have my real estate license. One of the main criteria for me after acquiring my license was to interview a broker who is investor friendly. During and after, when you receive your license, you will start interviewing brokers to find out what are their fees and requirements are. I would highly recommend asking them how they feel about you being a REI.  Some brokers have an insurance requirements which will put some limits and higher cost. Another way is to find out about some of the REIs in your area and who they signed up with if they have their license. That would give you a good lead. For that look for the property listing with "Owner/Agent"

I wish you all the best in new venture.

Mike Donnelly · Answer

@Ari, appreciate the reply from Arizona

@Allen, thanks as well.  I see we're almost neighbors.  I'll keep an eye out for you at REIA meetings, hope we get a chance to meet in person.  In fact, if you don't mind, I'll follow you on BP, I'd like to start building my network.

Regards,

Mike

Allen Thomas · Answer

There's no conflict of interest. I represent my LLC as its agent all the time, and I have never had any issues.