Good evening ladies and gentlemen.
I am starting in Real Estate Investment and i look forward to paying the price to earn the prize.
My name is Mory Sylla. I moved to Seattle 2 years ago from New York. I really enjoy Washington and do not miss New York's Siberian winter at all. I appreciate Biggerpockets for providing this plateform where inexperienced real estate investors/agents can directly learn from the multiple sources of success on this forum.
This is my first foray into the passionate and highly rewarding realm of Real Estate. I consider myself a lifelong learner and i am the one who will not stop asking questions until i understand the matter. Here we go.
I have been attracted to Real Estate Investment since the term fell in my ears. I am slowly but surely building my momentum. To that effect,i registered with Rockwell Institute,taking lessons online to become a Real Estate agent by next month if everything goes as planned.
Hence my question: is it possible to simultaneously be a Real Estate agent(ergo,licensed)while also performing as a Real Estate Investor? Is it possible to juggle those two balls?
I illustrate my intention(by the way,i am getting all these information from my courses so i have no pretention to reinvent the wheel. I have no time for that anyway lol).
During a real estate transaction,a distinction must be made between a real property(consisting of the land,the appurtenant rights and the "fixtures" such as trees,site-built homes and the likes,etc...)and personal property(the seller's car,couch,chandeliers and the likes,etc...) In the case of a manufactured homes,we enter into a gray area. When a manufactured home leaves the factory,it is a personal property(by its very definition,it is not a fixture,hence not part of real property.) The manufactured home is subject to a sale tax and must be registered(such as your car.) Mark this:to sell a manufactured home,an person sdoes not need a license,but needs to have a mobile home dealer's license.
When that same manufactured home becomes permanently affixed to the land is it sitting on,it ceases to be personal property and becomes a fixture to the land after going through the process of title elimination. It is now subject to property tax. The selling and listing of that same home is now conducted by a licensed real estate agent.
Given that Real Estate Investors buy and put houses under contract(i often hear that a license is not required)i am wondering to know by what mean is that possible? How can a Real Estate Investor put a house under contract and sell it to a buyer without being under the radar of the law for want of being licensed?
Don't get me wrong. I have nothing against that. If anything,i consider myself first and foremost as a Real Estate Investor(even if i have no money presently and have yet to close on my first property.) This is just to find the right avenue to intelligently navigate those two opposite currents of being able to have a license and apply my acquired knowledge to be a succesful real estate investor without having that sword of Damocles called the Law hanging over my soon-to-be rich head.
I welcome all suggestions and please rest assured that your solicitude is greatly appreciated.
Thank you for taking your valuable time to read this missive.
Welcome to the REI world AND the Real Estate Brokerage world at the same time,
@Mo Sylla ! I too am of both worlds. In as few words as possible, No Problem! There are certain ethical safeguards that must be included in some of your transactions when you are a licensed RE Broker in WA or anywhere else, but there is no restriction on your doing what any other private citizen can do; sell a piece of real property. The issue is really one of agency, not license. When you are buying a property (in cash, on contract, financed or however-that's just the math) and then turning around and selling it, you are only representing yourself. No license required. I let all parties to any transaction know I am a licensed RE Broker, but I don't need the license to do it. It's a matter of full disclosure that just makes sure no one can come back later and say they were taken advantage of.
If you were to go to an owner and say, "Hey, I would like for you to let me sell your property to someone else and make $5k to do it", and the person said, "Go for it!", THEN you would be in trouble, because now you are representing them in an agency relationship and you can't do that unless you are a Licensed Managing Broker or an agent of one (in WA, a RE Broker or Designated Broker). Make sure you are always just representing yourself and you will be fine! Rock On!!
Nice details @ mr.Glen Fullerton
I caught your reply in time,because even if i am not licensed yet,i was just about to go and say what you wrote in :
"Hey, I would like for you to let me sell your property to someone else and make $5k to do it", and the person said, "Go for it!"
Today too,as a matter of fact.
I caught your reply just before taking the wrong exit.
I appreciate your contribution to the clairification.
Hi @Mo Sylla , and yes welcome to where these two worlds collide. I just went through my own challenges a week ago. I recently got my real estate broker's license and started working at a brokerage. But I am still active with my real estate investing, and I tried to put an offer in on a property as an investor, and crap hit the fan. All I can say is: always disclose your status as a licensed real estate broker. Now keep in mind I am not an attorney, so this is not legal advice... but in my situation I sought out counsel from two legal firms, and the advice I got all came back to disclosure. Anyone can buy and sell real estate for themselves, without being or even using brokers/agents. But, if you happen to be a broker/agent, then you need to disclose that fact to all parties involved. Make sure there is no ambiguity about it. Disclose, disclose, disclose. Hope that helps, feel free to PM me.
Well said @Andrew.
I was definitely right to ask those like you who know about this.
I will pm you.
I value your contribution.
I would like to introduce you to see reality of real estate investment in Cambodia.
Inbox me and we can talk about it.