Posted by GL(ON) on October 09, 2002 at 21:42:56:
We get a lot of inquiries here from people who think you need a license to INVEST in real estate, or who think being a real estate salesperson is the Royal Road to INVESTING success.
The answer for those people is “no” you don’t need to have a license to be a successful INVESTOR.
But if you want to put deals together and sell real estate the way you are doing then you should get your license and pursue a SALES or BROKER type business.
legal boundaries of a bird dog - Posted by Dan
Posted by Dan on October 08, 2002 at 16:47:40:
I asked this on the legal board but just in case that was the wrong place, I am posting it here too.
I found a few properties in So Cal that are multi units with cap rates 8-10. I ran an ad to form a buyers list. I had 2 calls from r e agents looking for 1031 exchange props.
They said they would be happy to pay a bird dog fee for helping them. One of them, a broker/property manager is very interested in a 2mil prop and asked me to fax him the info sheet on the prop. The other is interested in a 400-1mil prop.
I called my local investor/mentor to ask if there was some kind of contract I should have these guys sign before connecting them with the seller’s broker. He said he is concerned because I am close to crossing the line of acting like an agent—he doesn’t want me to get into trouble. Is the only way around this to get the prop under contract and then assign it. There is no way I can prove I could purchase a 1-2 mil prop to get it under contract and that is what the agents want.
Any help would be greatly appreciated. One of the guys is quite anxious because he has 5 days left to find a prop!
Thank you very much,
Dan
Re: legal boundaries of a bird dog - Posted by CH
Posted by CH on October 08, 2002 at 20:21:35:
Hi Dan:
Being a broker in California and Arizona, I know if you provide services for a buyer and/or seller and receive a fee, you are required to be licensed by the state.
Sounds like you are having some success. Spend some time and money and get your real estate license.
Good Luck!
so confused… - Posted by dan
Posted by dan on October 08, 2002 at 23:37:47:
Hi CH,
Thank you for your reply. You know I have been told by every seasoned broker/agent I know that I should get my license.
Then I read this forum and investors say NO!
I am so confused.
I thought that the process was–1)get a buyers list–
2)find a prop–3) connect the two.
I guess HOW you connect the 2 is the delicate part. I am having problems getting agents here to put a contract on a property with and/or assigns on it. If they will accept the offer they want to know who the assignee is within 7 days so their name will go into escrow. So I either explain to the buyer—guess what you get to pay me an extra 10k on top of all the other expenses because I found your house for you. I did explain that in the beginning but I think when it comes down to it—will they resent it?
Any advice?
Thanks, Dan