Licensing/Legal Issue...
I have a virtual support/services business. Due to my passion for Real Estate, (for years) I have become a property locator for a handful of Real Estate Investors. I really enjoy the Real Estate arena, and I would like to also offer other administrative, creative, sales, networking & marketing support and services for Investors, Real Estate Professionals, Mortgage Brokers, Sellers & Buyers, etc..
I have some questions, and they are:
1) I am constructing a website for my Real Estate Support & Services. Can I list properties that are for sale or that I have located, or should I have any specific licensing to do so?
On the same note, as long as I am not involved in the actual real estate transaction, can I legally provide those additional services in the Real Estate sector, without needing a license?
2) I would also like to know~ I am very serious about succeeding in the Real Estate Industry. My intentions are to be investing within the next year or two. I have found some great courses at my college regarding investing and such. I also am very willing to further my education, as well. My problem is, I'm not sure what would be the most beneficial route to go. If I will be an investor, is there any particular type of licensing I should get that would help to streamline processes, or better enable me as an investor? (ie: realtor's license, re broker's license, mortgage originating, mortgage broker, etc...) Is it beneficial to have a mortgage broker's license? Please help me to decide where I should go in this arena.
That may sound like a dumb question, but if the licensing would prove to be beneficial....(ie: access to MLS, financing, etc...) I'd be willing to go for it. Same with all the other Mortgage/Lender Licensing, etc... What would be most beneficial for me?
When I start investing, I will have a mixed portfolio. I will concentrate on the motivated seller aspect, and will do a number of things~(depending on the deal, location, condition, and financial aspects) I will either flip, rehab, or rent w/option.
What do you think is my best bet?
Your thoughts on this are appreciated!
Sincerely,
Laurie Montana
If your web site is going to list properties for sale which you do not own (or have an equitable interst in) and if you are going to get paid somehow from the sale of those properties (other than an advertising rate not tied to whether they sell or not) then I think you're going to need a RE license in Illinois.
But either way I think the RE license course is a good idea. Is your local community college in Streamwood W.R. Harper College? I used to know the guy who taught the RE classes there and he was quite good ( though now that I think about it he must be retired by now). Anway, I recomend the class and the college versions are better than the ones offered by Brokers trying to recruit salespeople.
The knowledge would be a good idea.
Holding a license might be a negative idea.
If you want to run a service that supports other investors, realtors and mortgage brokers having a license may help or hurt. There are disclosure rules. There are issues with working for brokers but not having a license registered with their office.
If you want to be an investor then having a license is both a plus and a curse. Some investors say it helps their deals. Others say it scares off people. The disclosure and liability can be more then the license is worth.
1. Do you want to be running a business as your described? If so, I am not sure that a license will be much of a benefit. I suspect it will be more of a problem in overhead and might even close down some options for attracting business
2. If you want to be an agent, get a license and join an agency. Focus that way.
3. If you want to be an investor then running the business you describe seems OK or might even be a negative. It just depends on how you manage the mix of work for clients, finding your own deals and other such things. The business could be a great way to create cash flow while also investing at the same time. I for one would consider co-investing as a smart way to leverage the business and investing mix.
John
[addsig]
Thank you both for your input. I thought I might be getting in too deep by trying to list the property leads that I come across. I just thought this may attract more investors, buyers, etc...
On that note, I'd probably be better off just continuing to market my services to investors and buyers/sellers, and pass the leads on to the investors on an individual level, as I have been doing, rather than listing them publicly.
Also, I thought I had read somewhere that licensing may actually hurt an investor rather than help, as I assumed it may be beneficial. I really do not want to become a Realtor, so to speak. My ultimate goal is to become an Investor.
Thanks for the input on WR Harper College. I am currently moving from Streamwood, IL to the Rockford, IL area~(Winnebago, IL) I will not be travelling to Palatine, IL~(it's well over 70 miles one way) but have found other courses in my new area, regarding real estate investing. They are at Rock Valley College in Rockford, IL. They have a nice selection of topics, and I feel this will really help me to better understand re investing on a deeper level, before I begin investing myself.
Thanks again for the info, tips and prompt replies, I really appreciate your help! Keep up the good work!
Sincerely,
Laurie