All Forum Posts by: Storm S.

@Latonya Hinton don’t seek legal advise from an online forum nobody here knows the specifics of what happened, go talk to a local real estate attorney and get real legal advise

@Seung Oh I would buy a home for yourself to live in with as little down and then with what's remaining invest in REIT's, after two years move to a new property and turn the original one into a rental or sell possibly tax free and then repeat

@Douglas Gratz most people who own class have have only about 40-60% leverage on the property, which allows it to cash flow and puts more capital to work. This is a relatively low risk strategy which leads to lower returns than other investment strategies that take on greater risk. One of the benefits of class A investing is lots of appreciation depending on the market which is where the real money is made.

@Oneil Guntner Equity REIT's have out preformed the S&P 500 over most timeframes I would invest in a good reit index like VNQ

@Marduk Mooshoolzadeh buy some REIT's dm me and I can send you some articles and resources on them

@Will Barnard I could be wrong but I thought that the state legislators, wrote all the real estate laws and the purpose of the CA DRE is to enforce the laws not to make them, and in the case of conflicting laws the stronger/ more restrictive one is the one that takes effect. My view was that this law was meant to be a tool for the DRE to crack down on wholesalers easily. I would love to seek a link to something by the DRE showing a more restrictive version of this if you have one. 

@Will Barnard I’m not disagreeing with you on the views by the DRE, I was just presenting what the state legislature has come up with, I highlighted two sections the first covered when acting an a agency position and the second covered when acting as a principle. I agree with your view that people shouldn’t wholesale in California because it’s just unlicensed brokering. I just pointing out that the state legislature has determined if your assigning contracts for the purpose of reselling them, doing that 8 time is enough proof of your intent and that your breaking the law and need to be licensed.

@Will Barnard I’m not sure what you mean I bolded the parts where it explicitly talks about acquiring purchase and sales agreements with the intent of reselling to the public as a principle or in an agent role. The loans are another thing subject to this rule that also got highlighted because it’s in the same clause

@Charlie Moore I was renting by the bed and he punched a hole in a door and didn’t pay the last month utilities

 I am definitely not mixing it up with dealer status. Here is a link to the state law in the Business and Professions Code.

A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others:

(a) Sells or offers to sell, buys or offers to buy, solicits prospective sellers or buyers of, solicits or obtains listings of, or negotiates the purchase, sale, or exchange of real property or a business opportunity.

(b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities.

(c) Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal government.

(d) Solicits borrowers or lenders for or negotiates loans or collects payments or performs services for borrowers or lenders or note owners in connection with loans secured directly or collaterally by liens on real property or on a business opportunity.

(e) Sells or offers to sell, buys or offers to buy, or exchanges or offers to exchange a real property sales contract, or a promissory note secured directly or collaterally by a lien on real property or on a business opportunity, and performs services for the holders thereof.

https://leginfo.legislature.ca...

(a) A real estate broker within the meaning of this part is also a person who engages as a principal in the business of making loans or buying from, selling to, or exchanging with the public, real property sales contracts or promissory notes secured directly or collaterally by liens on real property, or who makes agreements with the public for the collection of payments or for the performance of services in connection with real property sales contracts or promissory notes secured directly or collaterally by liens on real property.

(b) As used in this section:

(1) “In the business” means any of the following:

(A) The acquisition for resale to the public, and not as an investment, of eight or more real property sales contracts or promissory notes secured directly or collaterally by liens on real property during a calendar year.

(B) The sale to or exchange with the public of eight or more real property sales contracts or promissory notes secured directly or collaterally by liens on real property during a calendar year. However, no transaction negotiated through a real estate licensee shall be considered in determining whether a person is a real estate broker within the meaning of this section.

(C) The making of eight or more loans in a calendar year from the person’s own funds to the public when those loans are held or resold and are secured directly or collaterally by a lien on residential real property consisting of a single dwelling unit in a condominium or cooperative or on any parcel containing only residential buildings if the total number of units on the parcel is four or less. However, no transaction negotiated through a real estate broker who meets the criteria of subdivision (a) or (b) of Section 10232 shall be considered in determining whether a person is a real estate broker within the meaning of this section.

(2) “Sale,” “resale,” and “exchange” include every disposition of any interest in a real property sales contract or promissory note secured directly or collaterally by a lien on real property, except the original issuance of a promissory note by a borrower or a real property sales contract by a vendor, either of which is to be secured directly by a lien on real property owned by the borrower or vendor.

(3) “Own funds” means either of the following:

(A) Cash, corporate capital, or warehouse credit lines at commercial banks, savings banks, savings and loan associations, industrial loan companies, or other sources that are liability items on the person’s financial statements, whether secured or unsecured.

(B) Cash, corporate capital, or warehouse credit lines at commercial banks, savings banks, savings and loan associations, industrial loan companies, or other sources that are liability items on the financial statement of an affiliate of the person, whether secured or unsecured.

(4) “Own funds” does not include funds provided by a third party to fund a loan on condition that the third party will subsequently purchase or accept an assignment of the loan.

This is pretty cut and dry to me if you do more than 8 wholesale deals a year and you are unlicensed there are no loopholes to save you.