Connecting a Home Buyer and Cash Investor

[Belinda Rodriguez]

I am considering acting as a consultant to connect a home buyer with an Investor for a small consulting fee.  My service would include assuring that the closing goes as agreed. Would this be legal If the Investor chooses to Owner Finance?  I currently do not hold a license....in Texas

Thanks in Advance

[Jon Holdman]

That sounds like unlicensed brokering.  Wholesalers make themselves a principal to the transaction specifically to avoid unlicensed brokering.  That is, they get a contract on the property and assign the property, buy an option then sell it, do a double closing or some other sort of technique to avoid being a broker.  You're skipping that step, so you're almost certainly brokering.  

Calling it a "consultation fee" probably won't hold up in court or a hearing, if you get there.  The judge will look at what actions you took and base a decision on those, not what you call the fee.  State realtor boards can be very aggressive about unlicensed brokering.

But if you want to deal well retail buyers and investors selling them properties (I assume the "investor" is the seller in your case), this has a really simple solution - get a license.  Its not difficult.