licensing for investors - Posted by John

Posted by HOuserookie on March 07, 2001 at 10:23:06:

I have a couple of agents that “assist” me during the closing process. This meets the requirement to use an agent.

Also, most title companies, loan brokers, and attorneys are also “licensed” as agents.

Find out which ones are and involve them in your deals.

licensing for investors - Posted by John

Posted by John on March 05, 2001 at 22:56:17:

I have decided recently to start flipping homes. I have been talking with a few brokers explaining my intentions in order to get access to the MLs. One broker told me that if I did more than five deals in a year I would have to get my real estate license. I was not aware of this. Can anyone tell me if this is true or if I was just misinformed.
Thanks for any replies.

Re: license for investors in NYC Tristate area - Posted by steve

Posted by steve on March 06, 2001 at 08:50:14:

OES THIS Apply to NYC and surrounding areas, in taxliens, flips, preforclosue and probate houses,
where can I go to find out??? Is there also a place to research tax liens in NY on line??? Thanks
Steve, email reply stephenchaleff@webtv.net

State Law - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 05, 2001 at 23:11:23:

John;

State law determines how many transactions the law allows without a license. Here in Minnesota (the state where NOTHING is allowed), that number is 5 transactions in a 12 month period. EXCEPTION: Those in the building business may not exceed 25 transactions in a 12 month period. 25 transactions equals 12 houses - one transaction on the buy side, and one on the sell side.

Good luck in your flipping endeavors. Rolfe

Re: licensing for investors - Posted by Andrew Graham

Posted by Andrew Graham on March 05, 2001 at 23:06:09:

I would definitely say you were misinformed.

Re: State Law - Posted by Andrew Graham

Posted by Andrew Graham on March 06, 2001 at 16:48:25:

Are we talking about an individual or an entity?

Are you SURE?! - Posted by Redline

Posted by Redline on March 06, 2001 at 10:45:22:

So the state can actually tell you that you cannot act as a principle on more than 5 deals per year without getting a real estate license?!

Wow.

RL

Re: licensing for investors - Posted by HOuserookie

Posted by HOuserookie on March 09, 2001 at 06:39:09:

Hi Andrew,

As much as I hate to see you being wrong, you are the one being misinformed.

I am in MN too, and this little-known law is REAL.

Re: State Law - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 06, 2001 at 16:51:32:

Whichever entity is the acting entity, that entity would need a license.

Rolfe

Contractor’s Req’s are worse… - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 06, 2001 at 17:11:22:

That’s right!
Those in the business of building (renovating) housing for the purpose of resale may have 25 transcations in a 12 month period. Otherwise, it’s “More than Four”, transactions, that is, in any 12 month period.

Check out this requirement for a contractors license; “Owners of real estate who do the work themselves (my add: acting as a general contractor) are limited to one(1) property per twentyfour(24) months.”

My feeling is the licenses are as much about generating fees for this tax hungry state as anything else.

Sheesh, Rolfe

Re: licensing for investors - Posted by Andrew Graham

Posted by Andrew Graham on March 09, 2001 at 17:04:58:

I hate to argue, I really do, but when I answered this post,in the question there was no mention of the state.Although that would have made no difference, I don’t live in that state and after talking to people in that state, it may be a law, but it is a law that is not enforced obviously because no one in the state pays any attention to it whatsoever. So I was wrong, I think I will be able to live with it. I know that even if the law was enforced, there are many ways around it, so it isn’t an issue no matter where you live.

Re: State Law - Posted by lyal

Posted by lyal on March 07, 2001 at 07:48:09:

Rolfe, I’m in MN also and have never had this mentioned by realtor, attorney etc. Can you point me to the statute??
Thanks, Lyal

Re: Contractor’s Req’s are worse… - Posted by HOuserookie

Posted by HOuserookie on March 09, 2001 at 06:36:44:

No, What you are seeing here is real life examples of special interest lobbyist. In this case, from groups such as REALTOR and association of contractors.

Re: licensing for investors - Posted by Houserookie

Posted by Houserookie on March 09, 2001 at 17:55:43:

This sounds like the shoplifter that keeps getting away with stuff. One day he gets caught and had to spend some time.

There are always legal ways around things, but you stated initially that this was some sort of lie.

How you handle your business is really none of our concern, but law is law.

Dept of Commerce RE Law Ch 82… - Posted by Rolfe Kurtyka

Posted by Rolfe Kurtyka on March 07, 2001 at 09:18:44:

Lyal;

Most likely, many people operate for many years without necessarily meeting the letter of the law. My hope is that the stautes will apply with more ferocity if one runs afoul with the law. Here’s the statute;

Department of Commerce Real Estate Laws, Chapter 82.
Subd. 4. “Real estate broker” means any person who:
Paragraph 82.17(5)
(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(5) or more transactions during any 12-month period, unless the person is represented by a licensed real estate broker or saleperson.

Good Luck; Rolfe

Re: licensing for investors - Posted by Andrew Graham

Posted by Andrew Graham on March 09, 2001 at 19:41:37:

The initial post stated that if you were involved in more than 5 transactions, you would have to get a real estate license, since there are legal ways to get around this and still comply with the law, it is untrue. I don’t live in that state and have never broken the law and I am not " getting away " with anything. In my state no such law exists and implying that I run my business in some immoral or illegal way is ridicilous when you know nothing about me. If you read the above posts, I never said it was a lie. I said he was misinformed, and he was.