Posted by Scott Ewing S.W. Mich on January 18, 2002 at 21:07:34:
In Mich lots of RE offices are LLC’s. The distinction MAY be that the brokers licence can go to a corporate enity, with the actual broker being a associate broker to the corporate enity.
License…Useful? - Posted by Green
Posted by Green on January 17, 2002 at 17:04:00:
Hi,
If I want to invest in real estate…Would it be good if I take real estate license? OR being a licensed agent will limit my powers(legally) when compared to a regular real estate investor?(Since I will be bounds by laws)???
Just Curious? And Getting a license…Is it a tough job ???
Re: License…Useful? - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on January 17, 2002 at 20:32:05:
Is getting a license tough? Nope.
Self policing of my commentary turned on…
Re: License…Useful? - Posted by Scott Ewing S.W. Mich
Posted by Scott Ewing S.W. Mich on January 17, 2002 at 17:46:57:
Well of course having the licence gives you the use of the MLS computer system. But more importantly, you learn a lot about the law and how to do some calculations,(not all of which apply to investing) If, like me, you buy the majority of your properties pretty straight forward, getting the commission split is nice. Right now I’m advertising for a 4-unit in my area and will get a commission for selling it to myself. With 5% down expanded product loan and sellers consessions to points, costs and closing, etc. I’ll be out less than 2% actual out of pocket, after paying my broker split. Finally, I was an investor first and it’s still my primary thrust, Having a licence puts you on a better footing if you have to deal with other agents who I admit, some are pretty unscrupuless. It was well worth the costs for me, and you WILL have to study. Hope this helps. Scott
Re: License…Useful? - Posted by WAC
Posted by WAC on January 17, 2002 at 18:37:40:
I am a broker and I think it’s worth it. I have access to not only MLS but all the property tax records, which saves me a tons of time to go to the court house to do the research if I don’t have it on my fingertips. I don’t need an agent to help me find all the info. Of course, I pay a small fee to MLS service for using their database.
I also agree with Scott that I get a cut when I buy property and I get another cut when I sell property. It gives me more choices. The total saving can be used for escrow and incentive to buyer (when you sell), lower the sales price and thus the property tax (when you purchase). Or you can pocket the difference. Basically you will have lower cost and that’s all I care as an investor.
You might be bounded by the regulations an agent/broker has to follow. But if you do everything legally, there should be nothing that can limit you. What are you trying to hide?
Study is not hard, if you know your reward.
WAC
Re: License…Useful? - Posted by Green
Posted by Green on January 18, 2002 at 11:31:35:
Hi, Thanks for the info.
I was wondering about negotiating with the seller. Does being a agent have any implications on negotiating with the seller…especially if I am buying property for myself. As a regular individual investor I am a free Man…Can make any kind of stupid offers…
Just Curious!!
Re: License…Useful? - Posted by Bryan in Cali
Posted by Bryan in Cali on January 17, 2002 at 19:32:51:
My concern with becoming licensed is that from what I understand you lose some tax benefits. If you are licensed then you are classified under the law as a small business professional and have to incorporate as an S corp. This denies you the advantages of an LLC or C corp, which in California are closed to anybody with a state licensed profession.