Bird dogs (Real Estate Scouts) - Posted by Ben

Real Estate Investing
1

Posted by JohnBoy on November 06, 2000 at 11:56:24:

I’m not arguing one can’t do real estate investing in MN.

The issue is whether you need a license or not. Under MN Law it clearly looks like is says if you SELL five or more properties within a 12 month period, then you DO need a license or at least need to be represented by an agent or broker.

An option on a piece of real estate IS pertaining to real estate. It’s an option to buy real estate. Real estate is real estate. The issue though, is pertaining to the number of SALES permitted within a 12 month period. A contract for sale as in, Land Contract or Contract for Deed, IS a sale, it DOES pertain to real estate when it is in fact real estate you are selling.

Their are MANY ways to INVEST in real estate, only ONE of those ways pertain to SELLING IT! This has nothing to do with INVESTING in real estate, ONLY when you SELL real estate.

Talk to a QUALIFIED real estate attorney in your state about this matter if you don’t know for sure and I’m sure he’ll clear it up for you. Probably a lot cheaper in the long run than waiting to argue about in front of a Judge after the fact when the state is after you.

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Bird dogs (Real Estate Scouts) - Posted by Ben

Posted by Ben on November 03, 2000 at 19:22:04:

I have heard about people making money in real estate by finding deals for them and then taking a finders fee. How does this work? Does anybody do it? Is this a good way to get started when I have limited resources?
Thanks,
Ben

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Illegal in MN (Land of 10,000 Laws) - Posted by Rolfe Kurtyka Mpls

Posted by Rolfe Kurtyka Mpls on November 03, 2000 at 23:00:46:

Believe it or not, in MN it is illegal for anybody WITHOUT a real estate LICENSE to receive money for finding, originating, or brokering any type of real estate transaction if that person is not the owner of the property. I’ve always felt this law was written by the Realtor lobby. Of course, the payment of finders fees most likely occurs regularly. And by the way, in MN, we also need a LICENSE to act as a general contractor on our own projects, if we complete more than one project every TWO years. More fees for state and city governments, more inspectors, more regulation.

Good Luck! Rolfe
The Socialist Paradise of Minnesota - No Barking!!

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Re: Bird dogs (Real Estate Scouts) - Posted by Jim LaVerdi (Phx_Az)

Posted by Jim LaVerdi (Phx_Az) on November 03, 2000 at 22:25:24:

Ben.

My latest deal which is in the works right now (just waiting for the listing to expire) came from a woman that saw my ad where I offer $500.00 Cash! for information on property that people need to sell quickly, ie: Divorce, Relocation, Foreclosure etc. This house was listed for over 90 days and has not sold. It is a property that I would have never found on my own. She knew the owner needed to sell because they now had 2 house payments and called me. I took the information, made contact with the owner and we came to a mutual agreement to buy & sell!

It’s worth the $500.00 to me to have picked up this deal! and where will I get the Cash to pay the finders fee? From my Buyer of course. The finders fee is not due until I close the deal, and I don’t close the deal until I get my buyer!

This is a great biz!

Jim LaVerdi (Phx_Az)

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Re: Illegal in MN (Land of 10,000 Laws) - Posted by houserookie

Posted by houserookie on November 04, 2000 at 24:10:26:

This is not true. Anyone in MN can become a
real estate marketing consultant and send deals
to agents. This person then bills the agent.

As for real estate investment, you are not
required to license for buying and selling for
yourself. The key is to purchase a good RE
course and learn the various ways of owning
and/or taking possession of the property.

You can then do a simultaneious transaction or
excercise your option.

Austin

6

Re: Bird dogs (Real Estate Scouts) - Posted by Rick

Posted by Rick on November 04, 2000 at 16:32:29:

Jim,

I believe in this particular case the woman actually knew the owner and was able to provide you with a name and number. Am I correct?

Do you require bird-doggers to provide you with that minimum amount? Or will it vary? How much do you require for them to “earn” their commission? I’m curious since I plan on utilizing some in the near future and don’t want to misunderstand how much “due diligence” (so to speak) they need to perform.

7

Re: Bird dogs (Real Estate Scouts) - Posted by Barbara

Posted by Barbara on November 03, 2000 at 23:08:25:

Jim,
Would you be willing to share exactly what your ad says and what types of papers you advertise in?
Thanks,
Barbara

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Re: Illegal in MN (Land of 10,000 Laws) - Posted by JPiper

Posted by JPiper on November 04, 2000 at 10:46:52:

Hey Houserookie:

You say ?This is not true. Anyone in MN can become a real estate marketing consultant and send deals
to agents. This person then bills the agent.?

The Minnesota Code says: ?Commission-splitting, rebates, and fees. No real estate broker, salesperson, or closing agents shall offer, pay, or give, and no person shall accept, any compensation or other thing of value from any real estate broker, salesperson, or closing agents by way of commission-splitting, rebate, finder’s fees, or otherwise, in connection with any real estate or business opportunity transaction.?

You say ?As for real estate investment, you are not required to license for buying and selling for
yourself.?

The Minnesota Code says a license is required when :

?f) engages wholly or in part in the business of selling real estate to the extent that a pattern of real estate sales is established, whether or not the real estate is owned by the person. A person shall be presumed to be engaged in the business of selling real estate if the person engages as principal in five or more transactions during any 12-month period, unless the person is represented by a licensed real estate broker or salesperson.?

It appears that there are some obvious conflicts between your beliefs and the Minnesota law. Here?s one more quote from the Minnesota law:

?Subd. 4. “Real estate broker” or “broker” means any person who:
(a) for another and for commission, fee, or other valuable consideration or with the intention or expectation of receiving the same directly or indirectly lists, sells, exchanges, buys or rents, manages, or offers or attempts to negotiate a sale, option, exchange, purchase or rental of an interest or estate in real estate, or advertises or holds out as engaged in these activities;?

I?d say that Rolfe offered some solid advice regarding Minnesota. You might want to review the Minnesota licensing law.

JPiper

9

Re: Bird dogs (Real Estate Scouts) - Posted by Jim LaVerdi (Phx_Az)

Posted by Jim LaVerdi (Phx_Az) on November 04, 2000 at 18:29:27:

Yes, in this particular case the lady did in fact know the seller and that they needed to sell quickly! Hey, that’s fine by me! I never knew about this house, and probably never would have if she didn’t see my ad and call me. My ad says $500.00 reward for information on property. Call for details. She called, I explained what I was looking for and she called me with the information I requested. It worked out (as soon as the listing expires) and that’s good by me. You or others might disagree but I do what works for me.

As far as what I require them to do, that is minimal. Provide me with the address and owners name if available. I’ll do the rest. What else can you expect them to really do anyway? All I’m interested in is houses that need to be sold quickly regardless of the reason.

Hope this answered your question, and best of success to you

Jim LaVerdi (Phx_Az)

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Re: Bird dogs (Real Estate Scouts) - Posted by Jim LaVerdi (Phx_Az)

Posted by Jim LaVerdi (Phx_Az) on November 04, 2000 at 18:19:40:

I sent you 3 different ads that I use to generate leads. Hope they help you.

Jim LaVerdi (Phx_Az)

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Re: Illegal in MN (Land of 10,000 Laws) - Posted by William Bronchick

Posted by William Bronchick on November 08, 2000 at 18:08:59:

Look up the definition of “person” within the meaning of the statute. Typically, the legal definition of a person includes a corporation (as opposed to “natual person”, which means a human being). Thus, could you form several corporations that do 5 deals a year each? So long as the “person” definition does not speak of affiliated entities, I don’t see a problem with this.

Also keep in mind that it is “presumed” that a person is in the business of selling real estate after 5 days; that just means the investor has the burden in court to disprove the fact.

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Just keep it simple please! - Posted by Matt

Posted by Matt on November 04, 2000 at 22:18:56:

Why must you make a complicated matter out of a simple question Piper? Not being disrespectful but please…If you’d just answer the question at hand the person asking would understand a whole lot better than if they were confused by your “Mumbo Jumbo”. You should have been an attorney or someone that likes to complicate matters like they do.

If I post a question such as what is 100+100 I would expect an answer like 200 and not a lesson of detailed mathmatics! If the person wanted all of the “Mumbo Jumbo” I think they would have asked for that! That’s how normal people do it.

Lord Please!

Matt

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Re: Bird dogs follow up - Posted by Rick

Posted by Rick on November 04, 2000 at 18:35:00:

Jim,

I don’t disagree with your techiniques at all. In fact, I appreciate your feedback. I’ve known from your past posts that you are out there doing deals all the time, so I value your input.

Thanks for the followup!

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Re: Jim LaVerdi - Posted by Barbara

Posted by Barbara on November 04, 2000 at 20:58:40:

I was shocked at the trouble Jim went to send me his ads!!! How nice that was!!! I have found the people on this site to be like none others!!!
Thanks again Jim!
Barbara

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Re: Illegal in MN (Land of 10,000 Laws) - Posted by JPiper

Posted by JPiper on November 08, 2000 at 20:18:28:

Took your suggestion and looked up the meaning of “person” as used in the Minnesota Code. Here it is:

“Subd. 2. “Person” means a natural person, firm,
partnership, corporation or association, and the officers, directors, employees and agents thereof.”

So if one formed several corporations each of which did 5 deals, and if the corporations had some common officers/directors, then I start to wonder how that fits into this definition.

Beats me…I’d have to ask a lawyer. Got an opinion?

JPiper

16

What a bunch of pear shaped lizards! - Posted by Wilt

Posted by Wilt on November 05, 2000 at 21:54:57:

?

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Re: Just keep it simple please! - Posted by JPiper

Posted by JPiper on November 05, 2000 at 01:35:51:

If “houserookie” had asked what 100+100 was, an appropriate answer would be 200. But for the record, houserookie asked no question (that is the post I responded to). Rather, houserookie gave some legal opinions. An appropriate response in my view would be to quote the law (that mumbo jumbo as you refer to it). If a quote from the Minnesota Code was beyond your comprehension or your need for simplicity, then I would highly recommend a reading comprehension course.

Either way, if you don’t like my answers then simply don’t read them…I would assume that’s how “normal” people do it.

JPiper

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Thanks - Posted by Jim LaVerdi (Phx_Az)

Posted by Jim LaVerdi (Phx_Az) on November 04, 2000 at 22:06:56:

Thanks so much for the complements!

Much Appreciated and my best wishes to you in your investing!

Jim LaVerdi (Phx_Az)

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Re: Just keep it simple please! - Posted by Houserookie

Posted by Houserookie on November 05, 2000 at 02:43:54:

Jpiper,

Huh…

What are you rabbling on? Someone said that it was
illegal to sell real in MN without a license.

My response was anyone can buy and sell RE for
personal gain.

Austin

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Re: Just keep it simple please! - Posted by JPiper

Posted by JPiper on November 05, 2000 at 08:37:02:

What I’m “rabbling on” is called the Minnesota Code, since renamed “mumbo jumbo” by “Matt dareligiousguy”.

That “mumbo jumbo” says you’re wrong. Either READ it in my post, or go to findlaw.com, click on Minnesota, and read it there. Either way, you’re going to have to READ.

JPiper