All Forum Posts by: Curtis M.

@Derek Tellier that's a good call. Because I did just learn through the agent training that a corporation is an artificial person. And my LLC will be paying cash for most if not all the properties purchased. That likely means that if the business has its website, and the business is making the offers, and the marketing is paid for by the business, then I can keep my marketing clean.

Like you said though, when it does come time to make an initial offer or relist the property after remodel, I have no issue disclosing that the owner of the LLC is a licensed agent.  My goal isn't to trick somebody. It's simply to attract potential sellers through my marketing, without muddying the message with broker branding and licensure information. Especially when I don't have a lot of space on an ad for extra info. 

I will be looking into this further this week.

@Matt Castle. Hey man. My only issue is my lead generation strategies. Website, Facebook ads, lead pages, mailers, business cards.

If I have my agent submit an offer to a seller, I have no problem with her disclosing that the buyer is a licensed agent. Similarly, when it comes time to sell, my listing agent will be happy to put that the owner is also an agent. I don’t see any harm there.

My problem is muddying the message of my marketing because I have to put broker branding or licensure information on every piece of marketing. so if I see a distressed property in the neighborhood I want to buy and I want to send them a letter, the rules state that I need the branding of my parent broker on the letter. In fact the rules even go so far as to say that not only do the name and phone number of the local brokerage where I hang my license have to go on the marketing…the font in which I put their info has to be as large or larger than the font I use for my own name. It’s really weird. And distracting I would think.

@Derek Tellier That was my other thought. When I sell the property my listing agent will be disclosing that the seller is an agent. In the MLS ad and anywhere else it appears. That's no issue. Im referring to finding an under the radar seller to buy from through my advertising.

I wonder if it was made a rule because of bait and switch agents? Maybe they reach out and say “I’d like to buy your house. Oh, your house is too expensive. But it’s a beautiful house and I think I can sell it for you.”

I’m not sure. But it does seem silly that in order for me to go and find someone willing to sell me their house, I have to put on all of my marketing the branding of my parent brokerage and disclose my licensure.

@Derek Tellier @Derek Tellier I’ll call the state commission tomorrow to see what they have to say. One broker just told me the new rules state that business cards don’t count. And that digital advertising needs to be “one click” from disclosure. Meaning my landing page would need disclosure but that the Facebook ad would not. I’m not sure about other print advertising I send out though. I’ll figure that out and post my findings.

I actually just closed down a Colorado LLC I used for investing and I am setting up a Tennessee LLC. Two in fact. One for flips and one for buy/holds. I guess since I will not be generating any realtor commission because I have another agent buying and listing my properties (she will deal with the broker split), I can have the branding of my LLC on the site and maybe there's a workaround there. Or again, maybe it's not even a big deal to disclose. I was just picturing on lead generating ads trying to find space in the ad to disclose broker relationship without taking away from the focus of the message in the ad

@Derek Tellier I appreciate that response. My concern were the ads, print marketing and my private lead gen websites. I wonder if I can just put the broker branding/mention in the footer. Or maybe even disclose my status and spin it as a positive to save money on commissions or similar. I have selected a broker but have not applied for the license yet. It’s not a broker rule though, it’s a state rule.

I’m a real estate investor in Knoxville, both flips and rentals. I decided recently to become a licensed affiliate broker in the state of Tennessee to have faster access to listings, comps, get in doors, etc.. I’ve always known that if I list my own properties or represent myself in buying or selling, I have to disclose that. No problem.

But as an investor, I maintain several websites as marketing funnels, I have business cards and flyers, run Facebook ads, etc. I don’t have a company logo or anything, it’s more less “I buy houses in Tennessee” type of thing.

As a realtor, I will not be a buyers agent for anyone, nor will I be a listing agent for anyone. Ever. Even initially I’m not going to represent myself on my own transactions. Maybe on down the line. But I have worked out an arrangement with a local realtor who will be drawing up the contracts for me on the buy side, and will list and sell the properties that I’m flipping. I’m not even going to be a part of that process. I Find the property, tell her what I want to pay for it, she does the rest and I just bring the money to closing

I’ve learned recently that if I do go ahead and hang my license with a brokerage, I might have to disclose EVERYWHERE that I am an agent. That makes it kind of difficult to run a Facebook ad back to a landing page. It also takes away from my primary message, which is, I will buy your house fast, for cash, no repairs necessary, etc. etc. 

I don’t really want to put the branding of my chosen brokerage, or my broker license number or anything like that on my website, business cards, lead pages, Facebook ads, printed mail marketing, etc. Before I hang my license somewhere I want to make sure I know what I’m getting myself into and that I won’t hurt my marketing efforts. I don’t mind putting in the disclosures when she goes to sell one of the flip properties, that the owner is also a licensed agent. But in my marketing materials to try to find under the radar houses to buy, I just don’t want to do that.

The rules of each state commission may differ, but those of you who are a realtor and are also investors… Have you had to deal with this? Do you know somebody who invests as a licensed agent, who doesn’t represent buyers or sellers? What did they do? can you see this hurting my marketing efforts or am I overthinking it?

Thanks!





@Jon Reed ... interesting. I’m going to discuss with my lender next week about that. I like it.

Side note: I passed through Springfield this morning. I grew up in Joplin and my folks still live there. Spent a week there for Christmas and headed back to Knoxville today.

@Greg Dickerson I sent an email to my accountant to learn his thoughts on the series LLC. From my hour of research it sounds perfect, but a bit complicated with the extra moving parts. I'll post below what he says about it when I hear back. I appreciate your feedback.

@Jon Reed thanks for the comments. I'd set up an LLC for the buy/holds too but I won't own those outright. And the bank doesn't like lending or refinancing to an LLC. So until they're paid off (I'm in no hurry) those will likely just be in my name with a solid umbrella policy.

But the flip properties I'm torn. One LLC for all sounds easiest. But if I'm fortunate enough to have four flips going at once, then they're all at risk under a basic LLC. But at the same time the goal would be to sell all flips within a few months of buying so maybe the exposure at any given time isn't great enough to create a complicated accounting structure. But the Series LLC mentioned above is interesting. I sent my accountant a request for his thoughts. I'll share what he says when I hear back.

I am rebuilding my portfolio now that we have moved to a new city.

I plan to use my own cash for flips, and lender assistance for buy/holds.

My loans for buy/holds would be in MY personal name with the bank. But I figured if I buy my flips outright it might be in my best interest to have an LLC purchase them for a little extra liability protection. I will have 1-3 flips going at any given time.

Do you agree an LLC would be a good idea?

Additionally, If I were to own my buy/holds outright I would have a different LLC for each of them. But since I'm only holding each FLIP property for a few months from the time I buy til the time I sell, would I be okay owning all of them under one LLC?

Thanks for the advice.