If you get your real estate license for a particular state and you want to sell (as agent, not investor) properties nationally, how the F can you do this without developing co-working relationships with brokers. Say you want to be the sole broker for high end props in 6 dif states...there's got to be a way to do this without getting a license for each state.

And if you partner up with agents in other states, then you have to split commission. Say I want to serve as broker for 10 properties, 1 in FL, 2 in NY, 1 in SF, 3 in Chicago and 1 in Dallas and 2 in LA...as sole lister....not MLS.

I'm sure there are a lot of men/women who are in the hobby who are going to be able to answer this.

Do you think the buyer's broker thing is typically something that exists in high enders only? I know a guy who buys and sells horse ranches (outta this biz) and he ended up suing the very same broker he hired. The guy found the property himself and the broker wanted a commission on it. I would say that unless you are Wayne Newton's personal broker (buyer for select high end individuals), there is no point to being a buyer's broker. And as a buyer's broker, wouldn't you be potentially liable for not crossing T's to perfection...ie: home inspections, land issues (landfill site coverups) etc etc.

HB


-- Modified on 1/23/2004 2:15:49 AM

Not a RE expert, but I do know that RE laws are STATE laws and that license requirements are legislated on a state by state basis.  Some states make it VERY difficult to obtain a license (hours training, exam, etc.).

You either have to get licenses in each state, or rely on internet sites (not MLS) to attract buyers for your "listings".  Not sure if the latter violates the state's RE laws though.

It's an interesting question.  I'd like to know how you decide to attack the problem.

  Ease up tiger, you are getting way ahead of yourself!!  The easiest thing for you to do starting out is call up a local RE office and see if they offer a RE classe and take one.  The class may cost you no more than a $200.  Nothing wrong with getting advice on this board however, while in class you can learn a lot about laws governing RE in your state and nationwide.  Honestly, it seems you are completely new to the world of RE and a message board just isn't going to be enough in helping you gain the understanding you need.  Just talk to the broker/agent/lawyer administering the classe and you will get all your answers and more.  Also if you do want to become an investor consider a joining a reputable RE investment club.
  RE has made many millionaires and hopefully you are on your way to becoming one  Best of luck to you!!!!!

You can establish coworking relationships with real estate agents in other states and essentially act as a lead generator but there's a risk there that the buyer will go direct to the broker and cut you out. Credible brokers aren't going to do this but one never knows.

I could have my license and Nevada, pick 25 high end properties that are not in this state and aggressively market them via net or private means but still, the local broker is going to have to "do the deal" for those laws you mentioned.

I'm trying to find out if I can eliminate the broker entirely for properties that the seller wants to list directly with me.

It's early. I'm sure we'll get some pros signing on with more information on this subject.

-- Modified on 1/23/2004 9:13:59 AM

I am a licensed real estate agent in Nevada.  A broker has to do the deal, an agent cannot.  It is the brokers deal not the agents.  You can become a broker.  You just need experience in the field, and a certain amount of college credits.  

If anyone is looking to get into the investment opportunities in Las Vegas feel free to email me and I can inform you on the market here in Las Vegas.  

It is a crazy market here!

........and i'll show you 24 fools.


When a person signs a listing agreement they are basically saying that they will turn the selling of their property over to you for whatever the specified timeframe of that listing agreement is. You, on the other hand, are saying that will represent that person and property to the best of your ability and with THEIR best interest in mind, not yours. If you represent the seller of the property, how can you honestly also represent the potential buyer equally well? The simple answer is that you can't. There are times when duel agency takes place, and there are times it works, but it's best not to.

Although all the things you mentioned about your friend and his broker don't totally add up from the small amount of facts you listed in your original post, i would say that the law in question was Specific Performance. It is my understanding that the broker would have had to be the one in that case to start the legal ball rolling, not your friend, but i could wrong.

I'm also having a hard time following your terms. It would seem your possibly mixing and matching the term "broker" and "agent"? There is a difference, and i'm sure the differences vary by state. As was said earlier, real estate laws change from state to state. A real estate "broker" is involved in every deal, weather directly or not. All "agents" need to work for a broker. If you want to eliminate that person, it can't be done. The best you can do is be the broker. The only people i know that hold a license in more then one state are all in a location close to the state line (real close) where they would bounce back and forth regularly. While i can't speak 100% for the laws in every state, as far as i know, to do what you've implied you will need to take the extra schooling and become a broker, not just a real estate "agent". If you want to be the only employee so to speak, in your office, you need to be a broker, just being an agent does qualify you.

As far as listing a property in one state and maybe a another in a different state and so on, are you taking any type of real estate appraisal class? High end, low end, middle of the road property is different from place to place. What may cost $150,000 dollars and be considered a palace in Crystal Falls, Mich. will most likely be considered a shack in L.A. or N.Y. You need to know the areas which the people live in that will be serving. Just walking in, hearing the owner say he/she/they want "X" dollars for their home isn't good enough. You need to know what the market will allow in the places you do business. You will need to advise your clients on what a realistic market value is for their property and how to best go about obtaining the highest price while balancing the other things that are involved. Are your clients motivated?(are they in a hurry) Will a few bucks of sprucing up and/or repairs bring a higher price that makes the sprucing/repairing worth doing and so on. Have they purchased something else contingent? These are just a few of the things that need to be considered. The more places you do business, the more you will need to know. If your dealing with people who are not familiar with the area they looking at, then you need to know the area for them. Schools, shopping, transportation, demographics and so on. Well, actually, any question of demographic would best be answered by referring to the local government office, or possibly board where they keep records of census, but for all the others, you need to know at least something about the area. In other words, you will need to know things about the area that you most likely wouldn't know unless you were native to that area.

You will need to be able to run comps so you have some information to back up the things you say to your clients in reference to listing price amoung other things. Guess what you'll need to most cases to do that? The MLS. The MLS is there to make your job easier, take advantage of it. Sure, you could wait for the county to get off their ass then go down and look up the tax stamps, but that will only tell you what the selling price for the property was. It won't tell you all the things about the property that you need to know for a good comparison such as number of baths, bedrooms, basement, finished, not, or semi, fireplaces, bars, wet or dry and so forth. One other thing about the MLS. Once you hang a for sale sign on a property anyone who is a valid real estate agent in that state can show that property. If they belong to the MLS or not doesn't matter. All they need to do is see the sign and call the listing office.

   

 

-- Modified on 1/23/2004 11:13:54 AM

I'm talking 500,000-30 mil estates nationwide that have similarities in a few key ways. Thus, niche marketing. Properties where the owners don't want their homes on an MLS listing. You aren't going to get B&B's or hotels and resorts for sale on an MLS. Celebrity homes on the market won't be on MLS either. They are going to be with one agent who is a "friend of the family" who is going to see the sale through to completion. So, we've got one site with select high end residential properties and of course there's a gimic to the whole marketing plan with some cool twist to the properties but again, we're talking national, not coast.

-- Modified on 1/23/2004 11:21:22 AM

I don't want to sell RE in this state so if I get my license here, it's pointless, right because then I'm going to have to take exams for the relevant states. CA is a bitch. You can't work independently for a few years and I don't want to work under someone else for 2 years before I go indie. I had someone offer to pay for my tuition a long time ago but that was in CA and then I found out the rule about working under a broker for CA. I'd rather do it on my own with a few properties on a well designed web site with video tours. I am not going to expect the site to sell the properties. I'll do the marketing via all the networking I have already. But the site would be my hook and certainly delivery of photos, stats and the gimic I'm talking about. I'm talking 5-15 properties. As far as the licensing goes and the legals, need to learn all that junk. Since owners can sell their own properties, isn't there someway to get around that if I act as more of a lead generator for the owner or is that way too risky?

-- Modified on 1/23/2004 12:42:25 PM

The only way I know to circumvent the problematic state specific rules on becoming a broker is to have an option contract.  Where you as the option holder have the right but not the obligation to exercise that purchase option or "assign the option" to another person (the eventual buyer). The nice thing is that since you aren't acting as a broker/agent, the rules don't apply.  

If you were to use the traditional approach, with a co-op from other brokers/agents in other states. Use a non-circumvent contract to discourage them from undercutting you to get to the client.

Good Luck

You can probably make any deal you want with an individual to promote a property!  Lawyers and or a broker are going to need to be involved in the deal.  I am sure that if you worked under anybody for a period of time they would be putty in your hands.

   Heather, after reading your posts on this topic I would seriously recommend talking to a RE professional or a lawyer.  No matter what you state you are in you cannot sell RE estate unless you are a licensed agent, initially affiliated with a broker.  
   We all know that in this world there is an exception to every rule.  If you truly think you are that good and can get listings for 1-3million dollar properties then just go to the owners and give them your best shot.  The typical commision a seller pays to the listing agent around 6%.  If a separate agent brings the buyer then 3% goes to the agent bringing the buyer.  Lets say you list a house for 3million obviously the seller isn't going to pay
180g in commision.  The seller for that 6% or whatever percent is negotiated is getting a valuable service, advertising on MLS nationwide, open houses if needed and an acitve recruiter for their prop.  So what do you offer to the seller??  
    If you think you are that good just go to the sellers and say  I am a independent "broker" who only deals in high end RE.  Instead of paying a 6%(60g) on a 1million dollar home, pay me 25g and I will also find you a buyer.  We can do the settlement with respective attorneys present and save you a lot in commision(attorney settlements are common on for sale by owner homes).  Are you so good that someone will trust you with their million or 3million home?? You seem to think so. Is it leagal to do this??  You better find out  Nothing wrong with marching to the beat of your own drum, just make sure your don't get marched into the slammer by being overly eager and cutting corners.  Good luck!!

I am a California real estate lawyer.  The only thing I see is that you act as a "finder".  You set up a web site with photos and descriptions of the "unique properties".  You make a deal with the seller that if you find a buyer you get a commission.  Document everything in writing.  I'm not sure about non-California deals, but it should work.

The fundamental distinction from a "broker" or "salesperson" is that a "finder" simply "introduces" the parties but does not negotiate terms or engage in any other transactional activity. A finder's employment is limited to bringing the parties together so that they may negotiate their own contract, and the distinction between the finder and the broker frequently turns upon whether the intermediary has been invested with authority or duties beyond merely bringing the parties together, usually the authority to participate in negotiations.

If the finder negotiate terms, that is a broker regulated act and you can get in big trouble e.g a criminal offense.  Even if a broker also gets involved and the finder negotitates with the broker that is wrong.  

Caveat:  9 out of 10 "finders" get screwed one way or another.  Brokers look down upon them, and Courts see them as trying to get around the real estate licensing system.  So be careful.