Flipper interested in starting a Brokerage in Kentucky
I posted this in the section for agents, but didn't receive any replies.
Thought I'd post it here as well.
I'm currently a full time house flipper/ real estate investor, but am interested in starting my own brokerage firm in part to reduce the costs of my flipping business, but also to have full access to the MLS, provide secondary income, etc.
In Kentucky, in order to become a broker, you must work as a licensed real estate agent for 2x years.
I don't meet this requirement, nor am I interested in working as a real estate agent full time.
As such, I'm thinking about partnering with someone who does meet this requirement.
The idea is- I'll pony up the initial cash, provide the brokerage with a stream of consistent listings, help recruit agents, and handle the strategic business decisions/ administrative duties, while my partner will handle the day-to-day operations of the business.
Does the majority owner of a brokerage have to be a licensed broker?
If so, to overcome this problem, could we form an LLC and segregate the equity from the share of distributions (at least until I've recouped my initial investment/ earned a healthy return)?
Finally, if I (as a flipper) make an offer on a sfr/multi that's not currently listed and my offer is rejected, would it be a conflict of interest to pass the deal along to the brokerage that I also own a stake in?
Thanks,
Patrick