OfflineI am compiling my buyer's list in order to start wholesaling and just mentioned it to a relative. He said that he thought there was a Michigan law that says something like if you're involved in a certain amount of transactions per year then you have to have be a real estate agent (or something to that effect). Can anyone give feedback on this?
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REALTOR
Real Estate One
Grand Rapids, MI
Don't let that be a reason to stop you. Is this relative a lawyer? If not, why is he/she dispensing legal advice? I think its pretty likely that this relative misunderstood something he/she read.
I have never heard of such a law, but if its really weighing you down, maybe you can PM one of the pros who live in Michigan.
In the meantime, keep doing what you are doing, 100 percent!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
Is that person qualified to give you that answer? Make sure the question you are asking is from a person that's qualified to answer. How long have that person been a attorney?
the relative is correct but it is one of those laws that have been on the books for so long that it doesn't get enforced because it would run amok of the restraint of trade provisions of other laws. For example, Ohio has a law that says that one person can only buy and sell 6 cars per year without having a dealer's license. These laws were put in place to protect a certain group of people (car dealers) during the 1940s to make their franchisee licenses more valuable. However, it doesn't get enforced, as long as the person doesn't hold themselves out as a car dealer. Same thing with your state. Don't hold yourself out as anything more than a private investor and you will probably not have any issues.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thank you all for the thoughts and information - that's the answer I needed.
As far as the relative being qualified to dispense legal advice, it was just something he mentioned I should look into because he thought he'd heard of something like that and wanted to make sure I didn't get into any legal trouble. So I looked into it. He was not trying to advise me as a lawyer or anything past a friendly gesture.
Happy belated Thanksgiving, by the way!
REALTOR
Real Estate One
Grand Rapids, MI
Create an LLC for every property that you purchase or put them in family members' names
Get yourself a good attorney, if possible by referral to ensure they'll better do their job because they'll be more accountable
you can't be worrying about something that has not happened yet... or about something that someone who is neither an attorney nor a re investor told you.
Go out and take some action; if you ever get to a point where you will be asked for a license, you will be so happy that you got there, because it will mean that you have made many deals!!!
Wishing you success,
Valerie
Valerie
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