Help understanding agent disclosure and brokerage rules

[Justin Montoya]

Hello all, I'm an aspiring investor in Utah and have decided to get my RE license. My plan is to make calls to the east coast (SC, GA, FL) from 630-830 my time every morning, trying to lock up some wholesale deals and maybe some subto buy/holds & wraps. Then I'll work "normal" agent hours throughout the day (830-7 - or later as needed).

In process of selecting which broker I will work under. Yesterday I interviewed a broker who said EVERY transaction I touch concerning RE - even out of state and in personal capacity - has to go through whichever brokerage I select. 

I tried to clarify and ask if that was just his brokerage policy or a blanket statement. He was ADAMANT that wherever i go, it has to all go through the brokerage, even where I'm not licensed out of state acting under my separate LLC. That doesn't sound right to me. Can anyone give some insight here?

[William Hochstedler]

Keep interviewing brokerages.  There is no requirement in Utah that, when acting as a principal in another state, you need to run transactions through your Utah brokerage.

However, your wholesaling and other marketing activities may be prohibited or require a license in other states.  There's an outside possibility that you get some sort of sanction in one of those states that you would have to report here.  I don't see how that's very much exposure to a broker though.

Bottom line is you need a broker who you can be transparent with who supports what you are trying to do or can point to the statute or provision of why it's prohibited.