bird-dog strategy to getting started...quick question...
I read server topics involving becoming a middle-man between investors and sellers.
After seeing that doing this type of transaction was illegal in several state I decided that I should do some research for my own state to see if this is viable.
I found out for the most part, unless a state includes specific exemptions to federal law, it is always illegal :l
But, from what I can understand (and my state law seems to agree with this) doing this is only illegal if the investor (the true buyer in this case) is NOT licensed as is the person doing the leg work.
From what I can tell, every reference I've seen to this, it's illegal only if a licensed buyer attempts to pay an unlicensed person a finder's fee.
Am I correct in my understanding of this?
If so, generally, aren't most investors unlicensed?
Would it be correct of me to assume this or should this be a question I would ask a potential investor?
This strategy seems to be very viable for me since I am currently unemployed and with no credit. It seems quite unlikely I can be approved for any sort of loan. I had become kind of despondent of being able to break into this business without some way of being able to build some capitol to lever my initial property purchases.
As I currently have no assets (another issue for receiving a bank loan :l) I believe I will be safe not obtaining a LLC until my first few investments begin. Or, should I try to obtain one anyhow to protect my own personal credit line should something go afoul (better to be in the neutral than in the red imo)
I read server topics involving becoming a middle-man between investors and sellers.
After seeing that doing this type of transaction was illegal in several state I decided that I should do some research for my own state to see if this is viable.
I found out for the most part, unless a state includes specific exemptions to federal law, it is always illegal :l
But, from what I can understand (and my state law seems to agree with this) doing this is only illegal if the investor (the true buyer in this case) is NOT licensed as is the person doing the leg work.
From what I can tell, every reference I've seen to this, it's illegal only if a licensed buyer attempts to pay an unlicensed person a finder's fee.
Am I correct in my understanding of this?
If so, generally, aren't most investors unlicensed?
Would it be correct of me to assume this or should this be a question I would ask a potential investor?
This strategy seems to be very viable for me since I am currently unemployed and with no credit. It seems quite unlikely I can be approved for any sort of loan. I had become kind of despondent of being able to break into this business without some way of being able to build some capitol to lever my initial property purchases.
As I currently have no assets (another issue for receiving a bank loan :l) I believe I will be safe not obtaining a LLC until my first few investments begin. Or, should I try to obtain one anyhow to protect my own personal credit line should something go afoul (better to be in the neutral than in the red imo)