Brokering without a License warning - Posted by Dave Hayes

import · October 28, 2003, 2:02pm

Posted by William Bronchick on October 28, 2003 at 21:48:47:

Only the 4th would be even on the border of “brokering”. You need to read you state’s licensing statute. Most read something to the effect of doing A, B or C “for another.” I believe MN and MI limit activity to 5 deals a year as a principal, but I’m sure you can get around that using multiple entities.

import · October 28, 2003, 2:02pm

Posted by Dave Hayes on October 28, 2003 at 15:02:43:

Hi folks (Bill, I am hoping you can respond)

Ways I know of doing a wholesale flip, with my question to follow

Assign purchase and sale to rehabbers
Double closing
Buy, do rehab myself, then flip retail
Use Purchase Option (exclusive or non) to tie property up, then find buyer

Of all these ways, what is the best method and why to avoid being classified as brokering without a license in EACh of the following two scenarios:
A. Working with MLS listed properties and realtors
B. Working with privately found properties (FSBO)

I have heard much conflicting advice, and want to mimimize risk. Thank you so much! - dave