All Forum Posts by: Brian Gibbons

Similes options are unique to California and that I highly recommend you have a license to do them

I know you're acting as a principal in a lease and option but your intention is to sublease and sub option

The gray area is 

do you need a license to show a property to a tenant buyer?

I think the tenant buyer side of lease options is a pain in the *** quite frankly and I would rather have a leasing agent earned one months rent to show the property in their license so that takes care of that

Do you need a license to talk to the seller about entering into a sandwich? Well if you're moving into it that's one thing but you're not, you're actually brokering a service, you were having somebody move then and you were making a profit to do that

California's one of the most regulated states in United States as far as real estate

if you have a real estate license you can do whatever you want acting as a principal whether it be a lease option or wrap or subject to

@Sebastia H.

I'll be there and I'm happy to share my knowledge about lease  options, Dodd Frank compliance,  seller financing , etc in California

Lee do you think that if you flip a subject to deal and it goes south and the person that you sold it to does not pay the underlying lien you're not gonna be liable?

You were in the chain of title and that seller can bring you to court

When I teach subject to deals the exit is always lease to own with that subject to loan is going to be paid off in 1 to 2 years

I am not going to have somebody take over my subject to deal for a fee

The other thing about subject to is I always give a warranty deed in escrow from me to the seller in case I default on paying the loan PITI, protecting the seller and getting the house deed back

Another confusing aspect of 

Oh my God 

if I get a license I'm going to have a fiduciary duty to do what's best for the seller

The amazing thing to me with new people you just have to remember that the real state boards of the states they just want you to be trained enough, to know enough,when you're talking to a seller that you've had some training

And if you're bad person lying to people they can take the license away from you

My attorney in California basically said if you have a real estate sales license you basically have been granted a limited power to act as a real estate attorney in creating agreements

Acting as a principal in transactions for profit and being licensed as a sales agent is the way to go to be able to do anything you want real estate

@Jim Means

Study Texas definitions or what real estate activities as a licensee

If you buy a property as a principal you don't need a license but to do everything in real estate like wholesaling with an option contract and selling it you need a license because you're brokering and "acting agent for"

Again if you take title to a property and resell it you don't need a license

You might have a problem with taxation with  dealer status

For the curious about California and acting as an agent 

http://secure.dre.ca.gov/publicasp/unlicenseddnr.asp

Home Licensees DisciplinaryActions

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Study your laws what define agent activities

Google 

department of real estate California real estate agent activities

If you take title on a wrap and sell the property once you have title (aka AITDs) then on sell it that is different than an option

Big thing is have legal title and act as a principal

Wow this is interesting reaction from everybody more than the "due on sale clause sub2" thread! 

There's so many articles on BiggerPockets about wholesaling and I bet you if you asked 100 of them what wholesaling meant, you get 10 different definitions

If you buy hundred thousand dollar property and close on it and get title now you own it, you can do whatever you want with it

If you option a hundred thousand dollar house or get a sale and purchase agreement with "and/or assigns" at the top of the agreement, you don't own anything, and the courts look at that as operating "agent for"

Have a title of something whether it's on a wrap or subject to or installment sale has real title.

Everyone is so afraid of having a real estate license that they'll be told what they can and  can't do

As long as you disclose to the seller that  you're a licensed agent and you're acting as a business person to make a profit as a principal in a transaction you were good to go to negotiate your best deal

Then you can write an option agreement and sell it, then you can enter into a lease and option is a principal and sell it, If you're licensed.