Advertising and Selling another investor's property

[Aaron Bruenger]

I am a new investor but have been around RE investing as a mortgage banker for many years. I have started my own investing company now and have both an acquisition website to reach motivated sellers and a retail website to promote my wholesale and other exit strategy properties. As I am a beginner I thought it would be efficient to allow other investors with a lesser known or no website to advertise their owner finance property or wholesale deal until I acquired a decent pipeline. Do I need a real estate license to do this? If I find a buyer for these investor's properties and charge a modest fee (thinking $1000 a pop), could I get into trouble by not having a RE license?

[Bill Gulley]

Welcome Aaron! I don't think I know you but I might! LOL

Yes you need a broker's licence to have a magazine or web site listing properties owned by others for sale, such as FSBOs.

Glad to see you here and hope we can pick some bones together! While you said "for years" I was probably sold out before you came in with guns blazing! LOL

See ya later I'm sure! :)

[Wayne Brooks]

A fee contingent upon a closing, yes. A fee simply for advertising, no.

[Bill Gulley]

No, Wayne, you must have a BROKERS' license to even advertise real estate for the public in a magazine or website, newsletter, newspapers with circulation requirements are exempt. In fact, it was a test question on the brokers' exam in the State of Missouri. I know the folks with our FSBO rag as well. :)

[Tiffany H.]

You can always get a non-exclusive Option to purchase the property and then market it that way because you'll have an interest in the property at that point. Option consideration might be marketing the property on your site.

That's how I understand it.

[Aaron Bruenger]

Hi Bill, I'm not sure we've met before either but I always enjoy meeting experienced professionals a little farther down the road than me. And Tiffany thanks for the info I will look into that.

[Bill Gulley]

Aaron, as it is everywhere, common practice keeps you out of trouble. I assume you're keeping your job at the mtg co. Advertising an option, needs to be disclosed in the ad, you don't want to rely on that "equitable interest" as you do not have the bundle of rights of ownership to say "house for sale" which by practice and implication is an offer of providing good title. I believe we have around 2,000 Realtors in the area, be aware that means there are prying eyes trying to list what they see as a FSBO, which means you need to dot the "i" and cross the "t".

I'd also suggest you start an LLC, it's cheap here, to keep a low profile in this area as you are also a lender soliciting Realtors ;)

Can you get on the MLS as an affiliate at the office?

Later, :)