OfflineIn doing my continued research on Real Estate Investing, it seems that everywhere I read on the internet, ordinary people (and Real Estate Professionals) are all stating that it is absolutely required by US law, that one has a real estate license (as either a sales associate or broker) in order to do what Dean teaches. Here is an excerpt I pulled from wisegeek.com
"In the United States, it is necessary to obtain a real estate license before you can earn money selling real estate. Each state has specific licensing requirements. However, every state requires prospective real estate agents to complete a training course. Furthermore, every state requires prospective agents to take and pass a real estate licensing exam."
It also goes on to say that:
"After you've passed the real estate license exam, you must pay a fee to obtain your license. Finally, you’ll need to find a broker to sponsor you. Don't be so sure your schooling is over, however. Many states list continuing education as a condition for renewing a real estate license, usually on an annual basis."
I bought Dean's books under the pretense that a person could do this "without" a license. I have even talked to several real estate attorneys and they all said the same thing. I was told that it is a "very fine line" and they advised me that if I was going to do any form of real estate activity, to obtain a license before doing so (to protect myself in case anyone ever questions, reports or threatens to sue me for doing something illegal.)
The only provision I saw that said you did not require a license was in the instance where you actually "owned" the property" or were an "employee who worked for a real estate firm or brokerage". In my understanding, if you "lock up" a property on contract and then "assign it" to a buyer or investor, you don't own the property. (I could be wrong here?) So if this is the case, how could you do this without a RE License?
I have looked through Dean's books and there seems to be nowhere that this topic is even discussed. I know there are several people on this site that have a license but some don't seem to.
I need a strait answer from someone here who knows without a "shadow of doubt" what is truth. I mean it makes perfect sense. If you drive a car...you need a driver's license. If you own a legal company...you need a business license. Why would you not also need a real estate license to sell real estate?
I'd like to hear from Dean himself on this issue if possible.
Thank you
Ken
"Success is not for the chosen few
but rather for the few who choose it"
I have done deals in 4 states, And their is no way I would brake the law. And no I do not have my license and at this time have no intent to get one.
Randy
www.adeptpropertiesllc.com
Just have desire, hunger and be innovative
Its not rocket science; its real estate
If you are going to sell a house for an individual for a commission/fee you are acting as a RE professional on their behalf. What Dean teaches is not the traditional list a property for someone, but to locate RE deals and Invest. You are acting as an Investor not as a Professional.
Investors would probably do the deal a little different. For example instead of listing the property for a commission, you would lock up the property as you are buying it youself and assign it to someone else. There are different ways to go about it, but if you sole purpose is just to list properties or just help people find properties then you would be a Realtor and would want to get a license.
In most of our contracts we actually put a clause that states we are just investors not professionals. Here is our clause:
"Assignee further agrees to hold Assignor harmless from any deficiencies and defects in the legality or enforceability of the terms of the said agreement. The parties hereby agree, understand and acknowledge that the Assignor is an INVESTOR and is not acting as an agent, employee, broker, representative or fiduciary for SELLER or ASSIGNEE, but acting solely in the INVESTOR’S own behalf as principal of transaction, and that all profits made herein are not a commission, fee, finders fee or employment compensation."
Hope this helps.
Chip & Andrea Weule
AC Investment Group, Inc.
Love that clause. Thanks for sharing.
Al
"NOW GO FIND A DEAL"
Watch your thoughts; They become words,
Watch your words; They become actions,
Watch your actions; They become habits,
Watch your habits; They become character,
Watch your character, it becomes your destiny.
Frank Outlaw
The way I understand it if you own the property sometime in the transaction you don't need a license.
Very valuable info.
Thank you Chip and Andrea. I will add a similar clause to my contracts from now on .
Thanks ..
Randy S.
Elkton , MD