All Forum Posts by: Dan Demers

Hello,
I am starting a FSBO marketing resources website offering MLS listings among other tools. I would like to expand nationally and leverage my time by hiring employees / agents. With consideration to licensing laws (and the gray area involved), I have a few ideas. Which would you suggest I pursue? Any ideas are appreciated.

- unlicensed sales reps contact leads with strict limitations due to licensing laws, with goal to refer lead to website to close sale, listing referred/hosted by broker partners in each state (advantage: easier to hire and expand, but lower conversion)
- licensed agents pitch leads, give better details, close listing sales on phone (better conversion rate, more difficult to hire, many more valuable and costly employees with state limitations)
- I get as many reciprocal licenses as possible and do all the calling (still a possibility but doesn't quite fulfill the potential and my overall lifestyle goals)

Can anyone (and yes, eventually a lawyer) clear up some uncertainty? Thanks!

I appreciate your input. Let me give some more background to be sure that this is true.

This question arose while researching a competitor's website. Their user agreement makes it clear that they are only an advertising and information services business intended for people who do not want to contract with licensed brokers. They also go on to make it clear that they only charge flat fees (hence my % question).

However, some of their services include an MLS listing. These require contracts with brokers who host the listings.

I'm wondering if I can offer services such as the website, information, etc as they do without being licensed. As more of a vehicle to what the seller needs. Are they operating illegally?

Hello,
I am writing up a business plan for a company that will offer marketing services to FSBOs. Although I am licensed in MA, I do not want to get 50 different licenses to operate nationally. Instead I would prefer to work with a network of licensed agents.

- What are the limits of prospecting and services that I can offer without having a license in a given state?
- One pricing model I would like to use includes a small percentage of the sale price... Can I offer this model without a license?

Hello,
I am researching the costs associated with starting a simple LLC brokerage in Massachusetts. On the mass.gov website it lists fees for an LLC license alongside the normal fees for a salesperson or broker's license.

Maybe it is obvious, but just verifying... Do I need to get my broker's license (yes), as well as a separate license for my brokerage?

I am trying to do a lease option in which I am the middle guy who sublets to a tenant-buyer. I have negotiated with the seller so that he will allow me to market for a tenant-buyer, and if I find one the agreed upon terms will go into effect. However, I would also like to receive some compensation from my marketing if a buyer I find chooses to buy immediately rather than doing the 1 year lease option. As a licensed agent, can I get into trouble for trying to act as an investor, but also possibly receive commission on the same property? How can I work with the seller so that it is understood that there is no agency involved, and in this case is it legal to collect a commission or finder's fee if the property does sell immediately? Thanks.

I have been looking for short sale leads from a foreclosure lists website. The company I am scouting for believes in visiting the houses in person, as these people are already getting plenty of mail and phone calls. For my first day of visitng properties from the list, I visited the properties that had been on the list the longest, figuring they were closest to foreclosure. These leads were from January. However, most of these were vacant (I assume the website didn't update when properties had been foreclosed on already).

What is the best age of these pre-foreclosures to try to begin a short sale? I was thinking of going for ones from April next, because those are approaching 90 days. Any thoughts? Thanks

This question is based on a Massachusetts contract to purchase, so it may not apply to everyone. There is a section that says ___ as a deposit to bind this offer. Then, the next section says ____ as an additional deposit upon executing the P&S. My mentor usually enters $100 in the first space and $900 in the second space to make it an even $1,000.

If we are talking about putting only $10 down, would you suggest writing in $1 and $9? That just seems like it would look goofy split up on the contract, and I don't want the buyer to get the wrong message.

REI_Kevin, can you explain how you collected the extra 49k at closing? I always thought you would just charge the assignment fee and that would be your pay. Where did the 49k come from?

dus22, I'm feeling the excitement too! I'm ready to start making offers, and hopefully some of them will work out.

I have a pretty good lead for a small peninsula on the East coast. It is owned by siblings, and a few of the siblings want their money. They have tried for awhile to sell it on their own without success.

It seems like a possible wholesale with huge potential. However, they are good friends with some of my good friends, and so I want to be careful not to offend anyone with the offer. I will also disclose all of my intentions to make sure everyone is satisfied, and no one thinks I am "pulling a fast one on them."

It is undeveloped land, some of which is marshy. Not sure about the zoning, if any. There is the potential to build a good amount of waterfront properties as long as it is zoned properly. Given that it is a very unique piece of land, how would you run comps and determine a reasonable price for it?

When calculating your NOI, what kind of allowance to you take out each month for long-term repairs? I assume you would want to take a portion out each month to save for when you need a new roof, or for something unexpected.

Also, if you do save this extra portion, where do you invest it so that it is liquid, but gives a decent return?