dealing with only investors.

[James Miller]

Hello bigger pockets Realtors.  

I think i have discovered a niche I would like to get involved with. There is a huge demand for multi families that cash flow in my area but most of the multis on the mls won't cashflow for what they are asking. I don't want to whole sale because most of the interested buyers/investors would be using VA loans. So I'm trying to figure out if it would be worth my time and money to get my liscese, send out yellow letters to motivated sellers and then turn around and sell them to pre approved buyers. Thus skipping the mls. Then just add my fee into the sale price? Not sure if this is legal or makes sense?

[Maggie L.]

I get what you're considering but this is something that requires state level knowledge. There are MLS exempt listings and sales all of the time in MO, so if your laws are similar I don't see an issue.

The first potential issue I see would be a salesperson versus brokers license. For example, in Missouri you need a couple years as a salesperson before you can get a brokers license. So, when you're just starting you have to "hang your license" with someone and follow their rules in addition to state law. I'd think you can find a broker who would work with you, but that may take some time.

The next concern I'd have is with the type of agency relationships you would have with the buyers and sellers. In Missouri (where I am) my thought would be dual agency - representing both sides - or a transaction broker - you're filling out the paperwork for a fee and am not the agent of any parties. You'd need to look into your state regs to see what your options are here - I've read dual agency isn't legal in some states, for example.

One thought I had is to try to find a broker who likes the idea. If you don't know anyome RE groups often have social hours or lunchs where you could strike up conversations that should give you leads.