Where beginners can get some money to invest

Question

I see people on here who are motivated to get involved but the lack of funds is troubling to them.  I also see people on here discussing the getting-a-good-tenant issue, the pita part of proper screening of the tenant, and so forth.  And I see people talking about full PM as an answer but then wanting to pick and choose the services they need/want etc.

So how about this enterprising underfunded people -

How about if you start a service to advertise to find, and then also hard-screen, quality tenants for landlords?  For a fee of course.  Which is certainly something I would be interested in paying for.  This would allow you to accumulate funds while associating with landlords and their business environment.

What about that idea?

When I started writing the above I had another 'great idea' but now I forget what it was. <g>

stephen

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J Scott · Answer

Again, I can't speak for other states and other laws, but the License Law in Georgia is highly regulated and enforced.  I personally know several people who have been investigated, sanctioned and/or penalized for violating license law in Georgia (and a quick Google search will turn up lots of cases).

William T. · Answer

Stephen, that is a great idea!

Stephen S. · Answer

Although I think this is about like the Dodd-Frank and SAFE laws in that no one will ever be policing and enforcing them - I guess my tenant screening idea would be against the law in at least some states.  Or at least should be checked in the state where you live.

stephen

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J Scott · Answer

In Georgia (the state where I'm licensed), you must either be a licensed broker or an unlicensed assistant to a broker in order to perform any of the following functions on behalf of a property owner:

(A) Delivering a lease application, a lease, or any amendment thereto to any person;

(B) Receiving a lease application, a lease, or any amendment  thereto, a security deposit, rental payment, or any related payment for  delivery to and made payable to the broker or the owner;

(C) Showing a rental unit to any person, provided that the  employee is acting under the direct instructions of the broker, and  executing leases or rental agreements;

(D) Providing information about a rental unit, a lease application, or a lease;

(E) Providing information to a tenant about the status of such  tenant's security deposit or rent payments or to an owner about the  owner's financial accounts and payments from the owner's tenants; and

(F) Performing any ministerial acts that are explicitly  authorized by the broker in a written agreement between the broker and  the employee.

SOURCE:

http://www.grec.state.ga.us/articles/propmgtissues.html

Stephen S. · Answer

And do your state laws forbid someone to screen tenants for a landlord Jay?

stephen

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J Scott · Answer

In many states, you must be a licensed real estate broker in order to manage property.  And I assume that in most of those states where licensing is required to be a property manager, finding tenants is covered under that requirement.  So, in those states, it may not be legal to do what you suggest without a license.

That said, I don't know any specific state laws other than my own...