Adam King (MI) 1 Report post Posted January 23, 2004 Hey all,This is the last time you’re going to see me waste any more time with this kind of post. I have done the last of my final research into this issue and I am only posting to put this behind me. Okay, everyone keeps asking if you need a license to do LOAs back to the seller. Here is the final skinny on what I found out. (Which I hate to admit it, but I already knew this) I was going to copy and paste the broker’s law right from the MI law books, but after researching, reading, arguing and spending time with brokers and attorneys for the last two months on this issue, I have decided to do the “short version” and get right to the conclusion instead. Conclusion: 1. You DO NOT need a license when acting as a principle in a REI transaction.2. People WILL see you as acting without a license if they don’t know or understand what you’re doing. (This includes judges, attorneys, Realtors and Brokers.)3. Most Realtors and brokers want you to BE LIKE THEM during ANY kind of REI transaction!!!! And if you’re not, they can and will cause trouble if they want to.4. READ #3 AGAIN!!!!5. Law in one state is NOT the same as another.6. READ #3 AGAIN!!!7. You need a broker’s license when bringing two people together in a RE transaction for a fee. UNLESS you are acting as the principle. This means you are bringing THREE people together in the transaction and working for YOURSELF.8. There is a very gray area with options and intentions in most law books. This is the gray area that has forced me to do this research and post on this issue. The “gray area” has also made people lose in court because of #3.9. READ #3 AGAIN! Final conclusion.Lease option assignments are legal, ethical and profitable if done correctly. And I have decided to use my attorney as a broker to be involved in these transactions to mask out this “gray area”. This will cost me about $200 per deal, but now the issue of needing a license is taken care of, and the (#3) issue is also taken care of. (Mostly) I have spent a lot of time, effort and money to come to this conclusion, but I am not saying that I think you MUST HAVE A LICENSE because I truly don’t believe you do to do these deals. I am only involving a broker because there are other MI laws about doing more than 5 deals a year etc that are also in a “gray area” and I can see a judge speculating that I am acting as a real estate professional as my principle vocation. Which I am….. So I hope this ends the issue that “I” have started. I do believe that everyone on this board and myself could go back and forth from now until eternity about this issue, but the truth is, we don’t need to. Continue doing your deals the way Michael and other professionals teach and you should be just fine. You simply don’t know what you don’t know and if you think you need to, you will go “Know” where.Regards,Adam Share this post Link to post Share on other sites
pinkerton 0 Report post Posted January 23, 2004 Adam, In fact, we could have a lengthy discussion on the drawbacks of being licensed and engaging in creative real estate investing. Thanks for all the work you've put into this issue. Mike P. The Legal Eagle Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted January 23, 2004 Mike,LOL Yup, we could! Why do you think I went through all of this trouble?! Regards,Adam Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 23, 2004 Adam, In fact, we could have a lengthy discussion on the drawbacks of being licensed and engaging in creative real estate investing. Thanks for all the work you've put into this issue. Mike P. The Legal Eagle Ditto that! Share this post Link to post Share on other sites
