All Forum Posts by: Sarah T.

Originally posted by @Shane Woods:

Here's my Step By Step Guide, the right way!

Step By Step Real Estate Agent in Texas

I believe all this info is the most valuable thing I've received from BP, hands down. Thank you SO much.

I am REALLY looking forward to the step list!!! The TREC website has killed hours of my life and you're right-- the instructions are head-bashingly circular!!!!

I can't even... Going through the process in TX right now too and this post... Just... THANK. YOU.

:)

Thank you everyone. Here's what I gathered from all this info:

1. Get RE salesperson license. Find investor friendly broker to sponsor me.

2. Talk to a RE attorney about biz entity type

3. Incorporate for flipping biz. LLC for commissions.

...and this is all legal and ok to do in TX. Pretty much the impression I was under before I posted, the course wording just made me doubt myself. Thanks all!!

Originally posted by @Guy Gimenez:

@Sarah T.

A salesperson may own a brokerage but the brokerage must still have a broker of record. The broker doesn’t have to be you, but you must have a broker who is willing to accept that responsibility.

Thanks! This is informative. So if a salesperson forms an entity while working under a broker, does this mean that the entity must have a "broker of record" within it? Does that mean the broker, assuming he/she accepts the responsibly, becomes an employee/shareholder/owner (depending on entity) of the company? And if that is indeed the case in Texas, and a salesperson does not want to give over any interest in their entity, would it make sense then to go for a broker's license after working as a salesperson for 2 years and THEN incorporate?

(EDIT: I'm asking this because a comment above said the flipping company wouldn't be subject to these requirements, and that's fine, but what about the fact that I'm also acting as my own agent buying the property and I have to pay fees from that to the brokerage? Would that money change things? I'm so confused.)

@J Scott: Thanks!! I reread it and that's how it sounded to me, too, I think you're right. Also, good idea, I think I"m going to set un an appointment with an accountant here that works primarily with real estate investors to get a second opinion about structuring my business.

Wow thanks! Talk about a quick response!

Here is the exact language from the course I'm currently working on:

"Any type of business entity that engages in real estate brokerage and that is required to be required to do business in the state of Texas with the Secretary of the State is required to be licensed as a broker.

This includes corporations, limited liability companies, and partnerships.

A business entity that receives compensation on behalf of a license holder is required to be licensed as a broker. [do they mean commissions??]

To be eligible for a broker’s license, the business must identify an individual broker, who must be licensed as a broker, as the designated person for the company.

If the business is a corporation, the designated person must be an officer of the corporation.

If the business is a limited liability company, the designated person must be a manager of the company.

If the business is a partnership, the designated person must be a general partner."

*****

Also, this goes against what I read from you and pretty much all the info on the BP blog posts I scoured, but our accountant insisted I form a C Corp for flipping and a separate sub LLC under its umbrella for my RE commissions. My husband and his family own a ranch and lots of LLCs within, and the attorney handles all the dealings with that, so he wants to make sure all my RE stuff is separate... BUT though he has a lot of experience with their tax situation and trust matters, he doesn't with flipping/real estate investing. So I've spent HOURS trying to figure out the best entity before I open our business account and deposit the money for the first house and I'm terrified I'll choose the wrong one.

Sorry this was kinda TL;DR but I have spend hours researching this and I'm at a loss.

Hi all,

So I'm preparing to rehab houses in the next year. I'm currently enrolled & working on the courses to satisfy educational requirements to be a RE salesperson in Texas.

In one course, it stated that a business entity must be licensed as a broker. So my question is, I thought salespersons working under a broker were able to incorporate bc they were like independent contractors under the broker? Is this wrong?

Also, I was going to flip within the entity (with myself doing the deal acting as my own sellers agent) and form a separate LLC for any non-flip-related RE commissions on the side. Would I not be able to do that in Texas without first being licensed as a broker???

This is rocking my grandmaster plan, and now I'm confused.

Help! 

(also @j scott bc your flipping book is my bible and why I'm getting my license, but didn't see this issue addressed)

(EDIT: for some reason i couldn't tag.)

No they're not properties he is the listing agent on. And no he didn't give me his login, he just set up the standard sabor client portal. I asked him to automate a feed for me and gave him specific criteria. I was just wondering how much MLS access I have via my client portal, and I just looked again... Apparently none but what houses pop up. Starting to think getting my license strictly for MLS perks may not be the world's worst idea.

Hi, So I'm looking for a house to rehab in the San Antonio area. I'm relocating there soon so I don't know the place very well yet. I'm working with a realtor there and he set me up a login to look at MLS homes found by the auto feed he set up for me. Question is this: since I have this, is it possible for me to pull comps and use the system to research areas around town/learn trends, etc.? Do I have access since I have an agent? I'm obviously not going to ask him to mine lots of unrelated data for me, but wondering if I could so it myself? Thanks!

To everyone who suggested finding a realtor and setting up an automated feed from the MLS - Done and Done!!

Spent a few hours combing agent profiles online, found some with investment backgrounds themselves, reached out to a couple, hooked up with one. He currently does buy and hold and has also flipped homes in the past.

He set up an automated feed for me and also grabbed a couple of current listings. I am going into this so much better prepared now! 

Thanks for the help all!!