Posted by Brent_IL on August 24, 2003 at 12:13:35:
This is a very common scenario.
Although I’m not currently licensed, I have been a couple of times. In several states, a RE agent has to work under a broker’s supervision for a fixed period of time before they are eligible to sit for the broker’s exam. It’s probably a good idea, but I never wanted to stay around that long.
During the 10 month and 6 month periods that I was a RE agent, I had an interest in several entities that were used as investment conduits. Some were taxable; some were pass-through. Some held title and some didn’t. I never had any kind of problem (other than that I didn’t want to do floor-time) with any offer, settlement, or investment.
The fear of having to disclose is largely illusionary. It’s like asking for subject-to, or an unsecured purchase money mortgage or anything else; it’s how you say it.
If you tell a seller, “The sate of XXX has tested me extensively, and they consider me to be an expert in real estate. They are very concerned that I might use my superior knowledge to appropriate money that rightfully belong to you, so I am compelled by law to inform you in writing of my status. Now, let’s talk about my creative offer,” it might affect your closing ratio a bit. Contrast that with something like, “Mr. Seller, I have a RE license. The state wants me to write it on my contracts so they know that I’m not listing this property, but that I’m going to buy your house for myself. It?s one of those things. I wrote it up as an addendum so I?d have a copy if someone asks for it. Sign here.”