Investing as a Real Estate Agent!

[Landon Schlabach]

Hey everyone looking for some guidance from people. 

I have recently gotten my Realtor License in SC and NC as I live right on the line of the to states. 

My broker is being kind of tough to deal with as I Love the Investing world and would prefer to go that route. I like having my license to be able to have access to the MLS and search for deals that way. As well as selling my properties myself that I flip. And also to be an agent for friends and other deals that present themselves.

Does anyone have any experience investing as an agent? My Broker didn't seem to understand what wholesaling is etc. 

The company is Century 21 so they are a lot pickier with contracts etc. She said it has to be the state contracts and thats it. Basically their way or the highway. 

I currently have a deal that I am signing for tomorrow and have my own contract written up that is totally legal just not the state forms and she says I have to use theirs and provide a bunch of disclosures etc. 

Its really frustrating as their is so many more hoops to jump through. 

Any help would be greatly appreciated. 

[Cara Lonsdale]

To clarify @Brie Schmidt, wholesaling isn't illegal.  Selling RE without a license is.  

@Landon Schlabach there is nothing wrong with what you are wanting to accomplish.  It just needs to be done within the parameters that are set by your broker, the Dept of Real Estate, and the association that you belong to.

The reason why your broker is pushing back is because he/she doesn't know if your contracts were properly vetted by a RE attorney.  All of the association contracts and addenda have been written and approved by RE attorneys.  Why would you need to look elsewhere for what has already been provided and fully vetted?

Also, agents doing their own deals can be E&O insurance liabilities as many E&O policies don't cover self-represented deals. I would say NONE of them do, but another BPer claimed that 1 or more do, so now I just state that MOST don't. In fact, mistakes made on a self-represented deal are often considered fraud, not an error or ommission. That is why they aren't covered. The issue here is that it isn't just YOUR butt on the line. Your broker's butt is on the line for every one of your deals too!

Keep in mind, if you (and your broker) ever have to go to court to defend yourself, the judge will hold you at a higher standard because you have a license.  So, your contracts have to be PERFECT.  

Funny story...when I went through RE school 21 years ago, one of the things that stuck out at me the most during contract writing class was "Write your contracts so the dumbest person in the jury box can understand them".  There is alot of truth to that.  I think Brokers get nervous when agents go rogue and create their own wording and so forth.

My suggestion is to come up with an addendum that includes all of the terms and conditions that you would like to add/change/remove from the Broker's RE contract for your deals.  Let them get properly vetted for your use going forward.  My guess is that if you at least agree on a standard form that you can use each time, the broker may be more likely to allow you to use it.

Then, after 3 years (or whatever the requirement is in your state) of being licensed, go off on your own.  Get your broker's license.  Then you can do whatever you want with your contracts.