RE agent limitations

Sorry, I probably put the topic into a wrong section, but could not come up with snother appropriate section

I talked yesterday to my Real Estate agent and she said that there are limitations on how many properties a RE agent can buy per year.
So, if I want to become a RE investor -RE agent, I will be limited in the amount of properties I can buy?
Or my RE agent just does not want to loose me as a client and not quite honest with me?
Thank you for your thoughts :slight_smile:

I’ve never heard of being limited on the number of buys an agent can make, but I guess anything is possible! You’ll need to check the laws of your particular state. In my state for instance, there is no limit to the number you can buy, but if you sell over five properties in a year you are required to be a licensed agent.

thank you :slight_smile:

That might just be a state by state thing I sold way over 5 last year and am not a agent I live in Denver Colorado Hey Jeff shed some light!!!

With regards to the statement about having to be licensed to sell over five properties, could you please post or say where you found this out, because there seems to be differing opinions as to whether this is a law or just something real estate agents tell people to “scare them” from investing. Thanks in advance, Tony

Howdy Yelena etal:

There is no limit on the number of properties anyone can own. The FHA sets a number of properties at 7 that you can own and get a FHA loan. This rule or law or BS I call it is actually read by most loan brokers as how many loans you have in your name that show up on the credit report. So if you have 500 owner financed deals you can get a FHA loan from a lot of lenders.

I do not know about the selling five properties either. You have to have a license to even sell one if you do not own it and are not an employee of the owner and want to get paid for your service. The IRS will consider you a wheeler dealer if you buy and resell more than a certain number per year. I hope to be a dealer real soon make some big money and pay a lot of tax. I love to pay tax. Maybe next year. I am running out of time this year.

Happy New Year

Thought I might chime in on this as well. I have just completed all my Texas RE license courses and I have not seen nor heard of anything that limits the amount of properties that you can buy as a RE agent. As noted in the previous posts some lenders limit the amount of loans you can have with their company. As an example countrywide limits you to 4. But will allow you an exception if you apply for it. As long as you disclose that your an agent you should not have any problems.

In reply to the earlier question–it is Michigan that requires a real estate license if you sell more than 5 properties a year. I don’t know of any other state that has this requirement.

Kim, could you please tell me where you got this information about not being able to sell more than 5 houses in Michigan without a license. I have heard about this, not just in Michigan, but other places as well. But I have never seen the specific law anywhere, so if you could tell me where to look, it would be appreciated. I would like to research it further. Thanks.

Regards, Tony

I think someone got confused about cars and houses I know you can only sell so many cars a year… Besides why would the goverment care about houses as long as they make there$$$$$$$$$$$$$$$$$$$$$$$…

I’m an investor in MI-Yes, I remember running into this annual 5 house cap on investors when I was doing a few land home pkgs. Dont know if this rule still stands. I’ll make effort to run it past my attorney friend & post the dirt.