All Forum Posts by: Hank Parater

@Steve Haight

Brand new at real estate sales. Had my license on inactive for the past two years and just decided to turn it on.  I happen to also be a licensed contractor which is how I pay my bills currently. My intention is to use both licenses to control any (investing) deals front to back.  Meanwhile helping friends and family with buying or selling houses. But with so many ethics, agency, and disclosure laws in the real estate biz, seems often one has to walk a fine line.

How will anyone/county/ brokers know who I am?  If the sign just says "we buy houses" or "Tom buys houses..Call 555-5555"- who will know if I'm a licensee or not. There are plenty of "we buy houses signs' in my city - Maybe there's people pulling them down from certain places, but they get put back up somewhere else. i highly doubt the county board is calling these numbers to see if the person is licensed or not.

Also, I would have a different phone number than the one associated with my brokerage.

Interesting. Yea, I guess so. 

Thanks @Doug Pretorius

I'm a licensed agent in Maryland, and thinking about using bandit signs to procure wholesale property and/or listings.  Does anyone know if this is legal? I would of course be buying property as a "personal investment" not as a representative or 'agent'.  If a deal is not made for 'personal property' - then it could be listed as a commodity on the market. I would of course disclose that I am an 'agent' at first contact, but also imply that I intend to buy personally. 

As per the law (copy & pasted from MAR):  

"Maryland law requires that all advertisements include your name (as listed on your pocket card) and the name of the company with which you are affiliated (not simply the company logo). Both names must be meaningfully and conspicuously placed in the ad. While the phrase “meaningful and conspicuous” may seem subjective, we strongly advise members to use a common sense approach to advertising. Remember that the guiding principle for these regulations is to minimize consumer confusion. We recommend that you show your proposed advertising to a neighbor or someone unfamiliar with the real estate industry. If that person is able to quickly identify the licensee and the company for whom the licensee works, the ad would most likely acceptable to the Real Estate Commission. If not, the ad may be considered misleading.

If an individual (personal) telephone number or web address is included in the advertisement, the office telephone number must be listed as well. The purpose for this rule is to provide a consumer with direct access to a broker or manager without the necessity of first contact the agent.

Additionally, both Maryland law and the National Association of REALTORS® (NAR) Code of Ethics prohibit licensees and REALTORS® from advertising in a misleading or untruthful manner. In other words, you must be careful at all times to present a true and accurate picture in your advertising and representations to the public.

With respect to the Equal Housing Opportunity logo, federal law dictates that all advertisements should include the Equal Housing Opportunity logo. Finally, members of NAR may use the REALTOR® logo. For additional information regarding proper usage of the REALTOR® logo, you may go to the NAR website (http://www.realtor.org./) and type “logo” in the search box. I have a feeling if I ask my brokerage

... I guess I answered my own question. Thoughts? Suggestions?

About to start a marketing campaign. Is it best to use separate numbers for direct mail & bandit signs? Or just use your every day cell?

I hear conflicting ideas on the subject.

@Dennis Poulsen 

Thanks. I think I will have an attorney draw up some disclosure forms ahead of time, so they can sign it during negotiations. I want to tread lightly in the beginning as to know exactly where that line is.

Any other Agents out there doing wholesales? Seems like a conflict of interest when talking to potential sellers.  

How about in direct mail campaigns? Should disclosure be printed?

I'd call around to some mold remediation companies in your area and get some ballpark estimates. Depending on how much drywall is in basement you could spend $800 in just removal and disposal. Now factor in new drywall hanging and finishing, and painting. Also, what if the mold has infected the framing/studs? Mold can be a small problem easily remedied or a big problem not so easily remedied. Guess it depends on how well you trust your mentor. 

@James Sparks 

I'm in Frederick, looking to start doing some flips in 2015, we should connect some time over coffee.

Good luck!

Long & Foster is a great place to start. I got my license through them & they will prove to be very helpful. They will likely start you on a 50/50 split commission (you'll get 1.5%), but they won't charge you to have a desk there. Remax and some others will literally charge you $1000 a month to be an agent with them- but they give you 100% commission (3%).  A lot of agents will start with L&F and then if you're really killing it - switch brokers for a better commission rate. Good luck!