Posted by Gerald(NC) on September 13, 2005 at 06:26:20:
a licensed realtor yet? Are you planning on it?
Somewhere I read where the bill would have made it tough for “regular” people to even offer their homes for “rent to own” or possibly not even be able to rent them out. Any truth to that?
Isn’t it true that “as long as” you get the “written” ok from the lender that L/O, or Sub2 deals are still ok, IF the law had passed?
Where are you located Luke?
Thanks
Bill 725 in NC, I an agent? NOW? - Posted by Dazed and Confused in NC
Posted by Dazed and Confused in NC on September 11, 2005 at 21:17:47:
My partner/corp owner, has finished his license for real estate agency, and is now doing the broker’s class. So first, he tried to tell me a month or so ago, while he was in class, that I would almost “have to” become an agent and get my license to continue in REI.
Tonight he reiterated that to me, in saying I now HAVE TO, to continue working with him since he is now becoming a broker. He si blaming this bill, Bill 725, for killing most REI peeps and opportunities. Is it?
I’m going to read the bill tomorrow for myself, but with all the “crap” language in poltical papers, it’s going to be a bore I know. If you know it, have read it, what ever, what are your opinions?
While I have always said I would probably “take the realtor’s class”, I didn’t really plan on doing the state licensing. I just wanted to see what was taught and if I could learn something from it.
I have 4 homes under contract right now. And basically he is telling me that since these are under contract right now, that after them I can’t even “birddog” for him. He can take no deals or referrals from “non-licensed” people due to him being a broker, and I would be acting AS an agent.
And I quote:
“It, (the bill) is going to limit investors who do “subject to” transactions and Lease Options; it won’t limit what we do. What will limit what we do is when you go and find a house on behalf of the corporation and not for your personal portfolio, you are acting as an agent and need a license. The reason it needs to be in my corporation’s name is because of my relationship to my investors, which is needed to offer owner financing, which is needed to make the whole thing work.”
I’m still in the dark, atleast partly, as to who our “investors” are. All I know of, being in this for only 2 months and having no sell yet, is one mortgage broker we use and then he finds other brokers who might finance our deals. Atleast this broker has told me “I’m going to check with my other guy” or" I’m trying to find someone who will do your deal for you." So I take it he is also like a loan officer I suppose. Other than him I know of no one else, myself.
Our whole thing, so far, is nothing more than getting FSBO homes under contract and then selling with our so called “Owner Financing” and having atleast $10k spread in there that we then split 50/50. So we don’t have the REI cornered for sure, but I do like the concept. And it is fairly easy since I’m not researching at the courthouse and stuff. And by saying “owner financing” which to me is almost a lie, it does give us a bigger pool of buyers we can sell to since we can do credit down to 500 or so beofre we have to be “real creative” and need much money down. We can do 560’s, (through the only broker I know we have), 100% financing. Haha all my people so far have been even under that :(.
I can, and was concidering, taking the course next month. But I wasn’t sure I was going to already, and now I feel pressured.
So one question I have is, should I go it alone? Get my own lawyer, or use the same one we have already? Find my own "brokers/investors? Or give in, and do the licensing because I’m going to “have to” or “need to”? Are the Realtor’s finally putting the “screwing” to us here in NC, and later everyone else?
I’ve got a lot to learn I know, and this is why I started helping this dude out, he’s been doing it for 8 months or so. But now that I’ve gotten out there, I see how much I enjoy meeting the people and the houses, and am having fun doing so. So going at it on my own has been in the back of my head due to having to split the profits with him in the first place. But I know he would be handling most of the legal part of the sell that Idk about yet.
Thanks,
D&C in NC
Bill 725 in NC, did not become law. - Posted by Iris Pen
Posted by Iris Pen on September 12, 2005 at 07:34:04:
D&C,
NC HR 275 was sent to Judiciary on 6/6/05 and never went for a final vote to make it a state law.
It is known as the Dealers Bill, at this time keep doing deals, you do not need a realtor’s license. It will not come up for vote again until next year.
Never really about the realtors, it was about the amount of complaints that the Attorney Generals office receives about investors who do not follow ethical business practices.
As a very wise person related to me: “We are not trying to run anyone out of the real estate business, only out of unlawful practices.”
Iris
Re: Bill 725 in NC, I an agent? NOW? - Posted by lukeNC
Posted by lukeNC on September 12, 2005 at 06:27:41:
From what I’ve read of the bill, if you are doing “subject to / lease option” deals, you’ll have to be an agent UNLESS you have a $250k bond, are licensed with the sec. of state and propertly disclose everything.
Quick turn / flip deals are not affected.
There is no law against getting a property under contract and then selling your contract for a fee, there never will be.
Your agent friend can still take deals from you that you have under contract. Nothing wrong with that. If he doesnt want to, find other buyers. Great deals will bring buyers to you.
Actually… - Posted by lukeNC
Posted by lukeNC on September 12, 2005 at 17:44:02:
Becky Carney is one of our county reps who co-sponsored this bill. I’ve emailed her occastionally regarding this. It is about the Realtors as well as the investors who do unethical business practices. About 50/50.
The goal is to try and make most real estate dealing state-regulated, similar to the auto dealer’s and other state-regulated business practices here in NC and most other states.
I think its a good idea once tweaked a bit.