All Forum Posts by: Matt Powell

Some of what I read above is not accurate.

In Texas, cash investors who are also licensed do NOT have to include a brokers name on their marketing materials offering to purchase properties for cash.  That only applies to a few places, like Ohio.  An offer to buy for cash is not an offer of brokerage or agency/representation.

We use disclaimers on all our marketing materials that meet state rules and basically say "this is not an offer to list your house, if you are currently represented by a broker, please disregard this offer.

In addition, if a licensed investor in TX forms an LLC for the purpose of purchasing, rehabbing, and selling houses they buy for cash, they do NOT have to be a broker.

Real estate agents often think that anything to do with real estate falls under state or NAR rules or jurisdiction. That's not true.

In regard to the original post, I don't know the rules in Maryland. but the main issue if you are licensed is you need to use the appropriate disclosures on your ("I buy houses") marketing materials, which may or may not include a reference to your broker.  If you are licensed and decide to buy and sell real estate, let your broker know, by all means.  It's a benefit to your broker, because 30-40% of the houses you find via your "I Buy Houses" marketing will result in LISTINGS.

it depends on the brokerage and broker

I was unhappy with one broker with reason stated above.

but I moved to another, and I can be investor and Realtor. as long as I bring continuous business, we all happy ;)

I know I'm in the minority around here, but I do not recommend investors get a real estate license if they are only buying and selling their own properties. Once you have a license you fall under the jurisdiction of your real estate commission. You are also obligated to follow the NAR code of ethics.

Advertising is state-specific so you would have to check Maryland law. Here in Texas you must include the name of the brokerage on all advertisements. That includes flyers, business cards, postcards, letters, etc. Advertising violations are the the most reported complaints to TREC.

Most brokerages will encourage you to do your own marketing, but you'll be expected to follow the rules. And by "do your own marketing," I'm referring to marketing to potential sellers and buyers, not looking for properties for you to flip. Many brokerages will not allow you to do transactions for yourself. They will require you to use another agent in the office. Keller-Williams has such a rule, at least here in Texas.

One of the issues that comes up regarding direct mail is the poaching of another agent's client.  If you do a blast to an entire neighborhood, you should be fine. But if you target specific properties, you could be accused of poaching if your letter goes to someone who already has an agency relationship.

If you form an LLC with the intention of conducting real estate business, the LLC will need a brokers license. That will require a licensed broker to sign on as the LLC's designated broker. And your personal license will be sponsored by your LLC. You won't need a different broker because your own company will be your sponsoring broker. That would probably be the best way to go for the purposes you described.

Personally, I don't see the point of getting a license if you're only buying and selling your own properties. The reasons I hear are to gain access to MLS and the myth that you will save commissions. Well your broker is not going to let you drop the commission and the split. They expect to be paid. But if your own LLC is your broker, then you can set your own rules.

Having said all that, my comment is based in my knowledge of real estate law in Texas. Maryland may be different and I would talk with people who are familiar with Maryland rules before making a decision.

Good luck!