Hi everyone:
I’m very new to this real estate concept. I’m just wondering, do I need to have a real estate license, either as a broker/salesperson, in order to do Short Sale Transaction or in that case any type of real estate investing techniques that are discussing here?
I would really appreciate if someone could help me on that as i’m very new to this arena of real estate.
Thank! :biggrin
A real estate license is not required to invest in real estate - including doing short sale transactions.
There is a bit of a debate as far as whether a real estate license is HELPFUL. Many think that getting a real estate license can allow you to get some inside positioning to get the best deals, and you can make commissions on your deals, which sometimes is true.
I for one - who was licensed for 3 years in Arizona - actually found it to be a mild hindrence. by law - all advertising with buyers and sellers - and contact with them - must be started with you notifying them you are a licensed real estate agent - because of agency requirements, truth in advertising, etc. This can put some people off, giving you another hurdle to overcome (“OMG, what’s he trying to sell me?”), while failure to do so, even innocently, opens you up to discipline and fines and potential lawsuit (“You didn’t tell me you were and agent!”)
But no, having a license to invest in real estate is not required.
I am licensed and I recommend everyone gets licensed myself. If disclosure is a problem, then you are not talking to the right person. They would have found another reason not to work with you. I find license is an advantage, I am not an investor who is trying to take advantage of them, I am an investor who is licensed by the state so I operate above bar and there is no reason not to trust me.
I agree with Salverston. Though having a RE license may seem like an advantage it actually opens you up to a huge liability. If you don’t plan on selling the homes yourself and plan on only being the short sale specialist - then that is what I would stick with, being the short sale specialist. There is a lot of work involved in a short sale and I have it worked out to where I have a complete RE team. A short sale negotiator and a Broker/Realtor. We all have our part in the short sale process and it works out quite well.
Thanks guys! 'really appreciate the tips!!! :bobble
The only thing now is to learn more on the short sale technique…seemingly scary stuff when you don’t have someone with you to actually be there and guide you on your first try.
Good quality info in here regardless…
I never have had, nor will I ever get a real estate salesman license. I work closely with a Realtor by using their listing agreement to secure the property I’m conducting a short sale on and to list the property, but that’s it. Negotiating with the lenders does not require a license of any type, just the ability to maintain professionalism. I have noticed that most lenders prefer to work a short sale with a Realtor or an Attorney, but I assume that is because they are licensed, hence eliminating the “noob” factor.
Personally, the reason I do not strive to be licensed myself is because it puts some restrictions on me and creates a certain level of responsibility. I do not want to be liable under contract or fiduciary duties, just in case things begin to go sour. I believe Rockefeller said it best, “Own Nothing, Control Everything.”
My partner and I work like this. One of us has every license under the sun and one has none. This is perfect. If you have not done short sales you may want to consider outsourcing you business to a company like LMS out of Cleveland. They take 1/3 of the deal but get them done. If you need more info on them send me an email.