How does having a salesperson license interfere with marketing?

Marketing Your Property
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How does having a salesperson license interfere with marketing?

Matt Powell
Catonsville, MD · Member since 2014 · 89 posts · 21 votes

Hi all. I'm new to investing, and definitely new to marketing, so I'd consider this a rookie question. I'm reading J Scott's book on flipping and am in the chapter about marketing. I plan on getting my salesperson license, so everything I read, for me, is in context of having a real estate salesperson license.

So my question is: Generally speaking, how might having a license interfere with marketing campaigns? I may get this answer when I'm taking classes, but I'm thinking in context of having to belong to a brokerage once I have my license. If I want to do my own marketing - say direct mail, or even set up a lead-catching website - am I obligated (ethically or legally) to list my brokerage with those marketing materials? What about on business cards? Am I even able to do my own thing, or does everything have to go through my brokerage? Can I set up a LLC? Ideally, if I must belong to a brokerage (and from what I gather, I must), I'd like to just use the brokerage for education. Otherwise, I feel like I'd want it out of the way.

Thoughts on these questions and my general goal? I'd be happy to clarify anything. Thanks!

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Dev HornPro Member
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
11y

Some of what I read above is not accurate.

In Texas, cash investors who are also licensed do NOT have to include a brokers name on their marketing materials offering to purchase properties for cash.  That only applies to a few places, like Ohio.  An offer to buy for cash is not an offer of brokerage or agency/representation.

We use disclaimers on all our marketing materials that meet state rules and basically say "this is not an offer to list your house, if you are currently represented by a broker, please disregard this offer.

In addition, if a licensed investor in TX forms an LLC for the purpose of purchasing, rehabbing, and selling houses they buy for cash, they do NOT have to be a broker.

Real estate agents often think that anything to do with real estate falls under state or NAR rules or jurisdiction. That's not true.

In regard to the original post, I don't know the rules in Maryland. but the main issue if you are licensed is you need to use the appropriate disclosures on your ("I buy houses") marketing materials, which may or may not include a reference to your broker.  If you are licensed and decide to buy and sell real estate, let your broker know, by all means.  It's a benefit to your broker, because 30-40% of the houses you find via your "I Buy Houses" marketing will result in LISTINGS.

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  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    11y

    @Dev Horn

    What about them Cowboys!

    Goal: Make enough money in REI to see these beauties live and up close.

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  • Rick H.
    Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    11y

    The conflict arises when you forget which "hat" you are wearing at a given moment of time.

    I started in 1978 and obtained my sales agents license but did not hang it with a broker. Had I been employed by a broker, there may have been a conflict with the broker's policies as I might have been considered a rogue agent (I rather like that title, however). 

    Around 1990 I finally got my brokers license which gave me free reign to do as I set policy.

    When I marketed, I marketed under the business name and acted as principal when in acquisition mode. When brokering, I'm representing borrower and lender. Upon COE, my agreement calls for termination of representation of the borrower.

    Today, I market under my primary business and broker loans to other businesses that I also own. This gives me the freedom to keep what I like and pass other deals on to my associates, investors and often, my competitor (who is a friend). 

    Situational awareness makes it possible to be cognizant of who I represent at any given moment. It would be problematic if I were employed by brokerage which could easily question who's coffers I'm trying to fill.

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