Complications If RE Licensed
Hello to all,
I'm getting so much from these postings its incredible! I am a RE Broker who has decided to leave traditional "listing" for subject to buying/lease option purchasing. My question here is does anyone know of any violations of DRE codes for licensed brokers to be involved with these types of contracts? Since I have just begun investigating setting up my own business ala Rich Dad, and looking into how these subject to deals, land trusts, etc. work, I'd appreciate any advice/experienced knowledge about what risks/potential pitfalls I have as a broker doing these deals. Most programs I've seen speak to the private investor without mention of RE licensing, and I certainly don't want to get involved in any illegal activites!
Thanks everyone! 
I'm no attorney, but I believe you are okay as long as you DISCLOSE that you are also a realtor. Be sure you let people know you are not talking to them to list their house, but you are there as an investor. Check with your attorney in your state tho. A quick phone call to a RE Attorney should do fine.
Ryan J. Schnabel
ddohogne,
Glad to meet you.
Score one for our side.
If you are not giving up your license here is how I would approach my advertising.
"If I can't sell your house I will buy it in 30 days"
Yes, you have to disclose you are a Realtor, however here is the real kicker, if I cannot sell their property in 30 days you buy it creatively, at this point you switch hats. You have disclosed that yes you hold a license, however you need no license to be a private investor.
Only pick the properties you would really buy when doing this however before signing the sellers up.
Also you could get a list of creative investors who want properties and take a small percentage for bringing these deals to the investor, these sellers would all ready be preped for selling creatively.
A real quality lead in my opinion.
John $Cash$ Locke
ddohogne,
Correction, I did not like the way I worded that headline for an ad.
"If I can't sell your house in 30 days I will buy it!"
John $Cash$ Locke
PS: Some times my mind goes faster than my typing does.
As far as I know, most states will require you to disclose your licensed status if you are a principal in any transaction. However, it does not preclude you from doing anything creative.
Be happy your state isn't as uptight as ours, we actually have a law on the books like this:
445.1628 Any person licensed to do business in this state who, while carrying on that business, knowingly advises a person selling or transferring property securing a residential window period loan not to notify a lender as required by section 3 or who knowingly otherwise aids or assists a person in evading the enforcement of a due-on-sale clause enforceable under this act shall be liable for a civil fine not to exceed $5,000.00 for each offense and shall be subject to revocation of his or her license.
(3) The attorney general, a prosecuting attorney, or any other person may bring an action for 1 or both of the following:
(a) A declaratory judgment that a method, act, or practice violates this act.
(b) An injunction to enjoin a lender, real estate broker, or real estate salesperson which is engaging or is about to engage in a method, act, or practice which violates or would violate this act.
(4) In addition to any other remedy provided by this act, a person who suffers loss as a result of a violation of this act may bring an action to recover actual damages or $250.00, whichever is greater, together with reasonable attorneys' fees.
Plus you aren't buried in snow up to uranus...