why are you not licensed?

Question

Hey everyone hope you are ready to crush it this week. My personally is to get 3 houses under contract by  Saturday. I sold 2 and bought 2 last week so I want to up the anty a little bit.

Question for all you cash buyers nation wide. Why are those of you who are not licensed decide to do that? I understand some people say it's more of a liability but I feel if you are transparent and fair it shouldn't be an issue. Just wanted to get your thoughts and share some options.

JD Martin · Answer

Do you mean actual cash buyers, or pretend cash buyers (i.e. wholesalers)? The former (like me), what reason do I need to get my license? I'm not really that interested in selling RE - though I might, when I retire from my W2. The latter - wholesalers who really don't have any money, just try to get houses under contract and then find people with money - in my opinion generally do not get licensed because they are not serious, don't want to spend the money, or are trying work the margins to rake whatever's been left on the table. Anyone who's good at 'wholesaling' would probably make a fantastic agent.

Sam Shueh · Answer

An attorney broker, licensed structure engineer, licensed loan agent(State and federal) and an investor was sued and briefly went to jail for failing to disclose all his licenses on all contracts and not due deligence and conflict of interest roles. The judge cautioned him not trying to be everything as each role is supposed to be filled by a different person.  A realtor's role is not the same as investor. In particular the judge stated contracts with same name under buyer/seller, realtor broker, prepared an inspection report and got a preapproval letter has way too much liability and is not appreciated.

Jay Hinrichs · Answer

@Rick S.  what those that make this statement are alluding to.. is when a non licensed wholesaler.. ties up a property and makes a HUGE spread by usually not divulging the true value of the as is value of the property to the seller.

as a licensed agent the wholesale community is worried about license liability.. IE  unconscionable profits.  Which is a real worry.. but its also if your not licensed and someone wants to charge forward with that accusation.

That's my understanding of why the wholesale community feels licenses are a liability.  NOt with standing they don't want to spend the couple grand a year it takes to keep them up and running.  And or be bothered taking the test or learning the laws of the land.

Rick S. · Answer

Why would it be a liability?