getting licsenced - Posted by David MacGown

Posted by rod on April 12, 1999 at 15:10:59:

This builder’s license angle sparks my interest. Could you supply more info. I also initially took the re class for licensure but before the first 2 classes were over I knew it wasn’t the way for me. There are restrictions and many broker’s are demanding of your time when you are working under them. I did complete the class and learned some important things about Re in general. But I’m strictly an investor.

getting licsenced - Posted by David MacGown

Posted by David MacGown on April 11, 1999 at 10:39:09:

I am currently taking a real estate class–it’s purpose is to prepare you for the state realters exam. However,my only interest is in investing. There seems to be to many restrictions working under a broker.

An invester friend of mine sujested to get a builders liscence rather than a realters licsence. He said a builders liscence is like a liscence to steel. Any opinions or facts on this subject? Thank you,


Re: More questions about getting licsenced - Posted by Gary_OK

Posted by Gary_OK on April 11, 1999 at 22:03:06:

David, I am also planning on taking a similar course with no current intent of getting a licsence, although the thought has crossed my mind. My goal is to accumulate a base rental properties for a steady cash flow and then get into other areas such as rehabs and l/o’s.

A few questions for those with more experience. My goal in getting a licsence would be to get access to the MLS and also be able to view homes at my leisure, unaccompanied and to get a better feel for the local market because I am relatively new (6 months) to town. I see additional benefits as networking and also making a few bucks while I accomplish the above items.

  1. In what ways will a licsence restrict me?

  2. Can I meet my objectives by doing this, or is there a better method?

  3. What other input can you offer on this subject? Pros vs Cons???


Re: getting licsenced - Posted by Rob FL

Posted by Rob FL on April 11, 1999 at 20:06:52:

I like having a license because I can get direct access to the MLS and don’t need to be accompanied by another agent when I go look at 5 or 10 properties in a day.

What is your aim? - Posted by PBoone

Posted by PBoone on April 11, 1999 at 12:10:52:

Once that question is answered then you will hit the target.

Re: getting licsenced - Posted by Laure

Posted by Laure on April 11, 1999 at 11:03:39:

I once had my license, about 5 years ago. I felt it restricted me, plus I was too caught up in my JOB to really work with it. My opinion on the matter is that the law requires too much of you, once you have your license. Too many restrictions for me. I prefer NOT having my license for real estate investing. Just what is right for me… may not be that way for you>

Laure :slight_smile:

Re: More questions about getting licsenced - Posted by David MacGown

Posted by David MacGown on April 12, 1999 at 08:28:31:

Gary, I think the issue depends on an individuals direction of aim in the field. I am going to try to answer this as accurately as possible,because I was criticized for this thread on another newsgroup. I should not have said “licence to steal” when refering to a builders licence. Yes there are a lot of legal restrictions on a brokerand for a good reason. they are there to protect the public. I would not chose a builders licence over a brokers licence because I could get away with more. The licence is constricting to me for other reasons.
I am a broadcasting student. My career will be in the entertainment field. This is my passion.
Real estate is an interest but is a hobby. It will not be my career,no matter how much money I make…
You have to do what you love. Real estate will give me the means to do what I always wanted to do but realistically is a tough business to make a living at…(acting) I don’t want to work as a broker or under one,because I simply want more control. I don’t want to be the employee. As a private invester you are paying their fees,so don’t let them walk over you. You write the rules.

But to answer your questions… Each state may have different laws,but in michigan you need a licence if:youintnd to collect a fee or compensation/if you sell more than 5 houses a year/devoting more than 15 hrs. per week in any 6 mo. period to the sale of r.e(who’s gonna know?)
Here are some reasons why I chose not to get licenced.

1.I feel I would be more productive having agents and brokers work for me as bird-dogs. You will have plenty of access to mls when you pay an agent 10% on closing for every lead. They know the market best,let them work for you,instead of an adversarial relationship with co-workers.

2.You must identify yourself as a broker when advertising(it can scare off some prospects)

3.a salesperson can only advertise under their own name if selling their principal residence.all other r.e in which you have an interest and desire to advertise must be listed with a broker. a licenced builder there is no restrictions on how many properties you sell a year. With this licence you are exempt for broker licencing.(The real estate investers in the forbes 500 wealthiest all made their mark by devaloping.)