Posted by Mark A Flores on February 24, 1999 at 03:03:15:
Thank you John…I really appreciate the informative answer you gave to my question. I will be looking into this more for my own info and will post any information I am able to find.
NoteBroker need a License in CA? - Posted by Mark A Flores
Posted by Mark A Flores on February 21, 1999 at 03:09:13:
Was curious if you need some form of license in california in order to be able to broker these real estate notes…and if so which type of license would it be?
Most controversial question in the industry? - Posted by John Behle
Posted by John Behle on February 22, 1999 at 13:46:14:
Many people out there try to tell you you do not need a license in California. Some well meaning, yet un-informed and others that want to sell courses in California.
YOU DO NEED A LICENSE in California to broker notes - depending how you go about it. If you are buying and selling notes in California you can do up to 7 in a year before crossing the line. Some advocate that you can do 7 yourself, 7 in your wife’s name, 7 in a corporation, etc. Probably.
If you are just buying notes on your own behalf - WHICH IS ALWAYS THE BEST WAY TO DO IT - then you are OK in California and most if not all other states. It’s the “selling” of notes that is a problem. There are some exceptions in some states for selling to institutions or out of state investors.
Some just go ahead and get their real estate license and others just hire a broker for a few bucks to handle the closings on their notes. Others just use different entities and go by the 7 rule. The problem is I think the state or any judicial proceedings would just collapse that.
The state puts out several publications explaining their laws and policies. Some of the industry courses and publications from self proclaimed note gurus are just plain wrong. Even some attornies have tried to claim you do not need any licensing in California. There’s no pleasant way to say they are absolutely wrong.