All Forum Posts by: Dustin Dummer

Both sides of both duplexes are currently rented. The $185,000 duplex is going to have one or both tenants move out in April. I’m told the tenants for the $120,000 duplex are now on month to month leases and want to stay. I have options for loans on the $185,000 duplex; a conventional 3.16%, 25% down, 30 years OR owner finance for 5% with .25% increase every 5 years up to 5 3/4% (no closing costs) for 30 years with 20% down the $185,000 duplex. On the $120,000 duplex I can get a conventional 3.625% loan, 25% down for 30 years.

@Bill Gulley I'm currently taking the 48-hours salesperson course. It states that any of the following require a real estate license:

• Sells-assists buyers, sellers, landlords or tenants with real estate activities
• Procures prospects - in some way finds buyers, sellers, landlords or tenants to carry on real estate business activities
• Offers to sell - example, "Let me list and sell your property"
• Lists for sale - actually obtains a listing or a management agreement to help a consumer with their real estate needs
• Negotiates - helps a consumer to buy, sell, rent or lease a property
• Exchanges- negotiates or offers or agrees to negotiate the exchange of real estate for a consumer

In addition:

• License Law Chapter 339 that requires a person be licensed to participate in the real estate profession. All business is conducted in the name of the broker and not the salesperson (salespeople must be licensed to a broker).

Under the above transactions it is all a very grey area as to whether wholesaling is considered "brokering" even if they close on the sale then re-assign. Especially if a person conduct multiple deals since a person would be considered to conducting business operations which include real estate transactions therefore falling under real estate law.

Therefore this raises the following questions from a legal standpoint:

1. As you said, wholesaling without the "intent and ability to perform" isn't legal. Can you in fact legally wholesale without a real estate license according to the listed functions above which are all part of wholesaling if the actions of wholesaling are considered "brokering". I guess the question is "Is wholesaling considered brokering?"
2. And even if you have real estate sales-person license do you then legally have to have the transaction go through a broker because you're conducting a real estate activity (broker action)?
3. Then lastly, what is the true legal purpose of a re-assignment if #1 is true (a license is required)? What are examples of legitimate uses of re-assignment?

@Bill Gulley I know this posting is old but a very relevant topic. What contracts need to be usedIf the guru re-assignment is illegal then is there a particular contract that needs to be used to take title and then assign (utilize subject-to)

I'm researching the topic of creating an investment group. I'm looking for information on the general structure of the entity (LLC vs Partnership, etc) when including multiple investors with a designated investment manager; investment capital structure (who's in for what and how profits are payed out); if you have one primary partner doing the management would there be "reasonable" fee from the profits of purchase; and anything else anyone wants to contribute. I've seen replies by @ j scott to other posts but I have not seen anything thorough on the topic. Discussions or reference materials would be appreciated. I'd love to hear from members that are currently doing this and how they're structured. Thanks in advance.

I started typing a message to a member. I saw that the message was Saved. But when I go back to the inbox I don't see Drafts or anyplace to retrieve that message. Not a big deal because I copied and saved the text for this very reason but just trying to understand the site layout for the future. Is it possible to access the "Saved" draft messages?

@Jeff Sprunger Thanks for your example. You presented those number in a way that is very easy to understand!