Hello and Good Sunday Morning:

I have a question and I have already read the answers to this particular question, so bare with me!!

I am in the business of buying and selling Notes (Commercial and Residential) also Non Performing Notes through Banks and Credit Unions.  

If I find an Owner Financed Note Holder that is willing to sell his/her Note and I submit the deal to an Investor/Cash Buyer and this Buyer purchases the Note and pays me a Finders Fee, do I need a Real Estate Brokers License for these kinds of transactions not only here in California but all 50 States??

There seems to be 2 different answers to this question!  Yes I do need a Brokers License and No I don't need a Brokers License!!  

Please let me know!  I am a bit baffled by this!!

O. Rodriguez

Well in all 50 states is a hard question to answer. Every single state is going to be different. What you're technically doing is almost "wholesaling notes" but it could easily enter into the brokering territory. You're kind of facing the same "gray area" most wholesalers run into. Why not just avoid even the hint of impropriety and get licensed? Start in the states that you're active in and branch out as you go. 

@Orlando Rodriguez , I'm not sure of the implications of wholesaling notes, but I don't think having a real estate license would matter one way or another. A real estate agent/broker is involved in the purchase and selling of real property and sometime property management, a note is not real property since the note holder doesn't own the property for which the note is secured.

@Jay Hinrichs may be able to answer this question for you since he's been involved in both notes and real estate for many years.

@Randy Johnston I think CA is probably the only state that acts like this.. but a CA real estate broker licesne is needed to do HML... or NMLS or Consumer finance license need one of the three.

when I ran my HML shop in Oakland I ran it under my CA brokers license.. although I am in Active now in CA I still have the license in case I wanted to fire up Notes or HML in CA.. I am legal.

here in Oregon you need full blown NMLS... this is why most folks decamp over the river to WA to do this activity as it requires no license there.. but if you making loans in ORegon you still need the license..

@Jay Hinrichs , thanks for the response and proper information. :-)

What does NML stand for?

From what I understand, you need a broke's license to sell 8 or more notes in a given year, In California. You may want to check with the Bureu