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General Landlording & Rental Properties

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Numan Seinfield
  • Lompoc, CA
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Is it worth it to get a brokers license for my own investing/flipping?

Numan Seinfield
  • Lompoc, CA
Posted Dec 13 2012, 14:21

I’ve been researching this and need some experienced help
I am thinking of getting a broker license for my own investing/flipping. I've taken all of the salespersons classes, but have been reluctant to get the salespersons license as most brokers don't like their agents buying directly from FSBO/motivated sellers. Plus I lose a lot of control/flexibility over my own deals.

My plan is to instead get a brokers license (I need 4 more classes to sit for the test) and continue to do deals as an investor by finding motivated sellers/FSBO. If a deal is too thin I would like to refer them to another agent (for a referral fee) who will list the house. (Would I incur additional liability referring to another agent?) I could possibly list it myself, but am worried about a conflict of interest. I feel I am leaving a lot of money on the table without these options.

Is it worthwhile doing this? What costs would I be looking at? I know I will have E&O insurance (around $1500/yr. CA brokers fees ($400/yr)?

If I’m the only one working and I hire a RE attorney or transaction coordinator to go over the paperwork on my deals how much more liability would I be taking on vs being unlicensed?

Is anyone else doing something similar to the above?
All recommendations/suggestions appreciated

Jason

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