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morganREI

CA Question

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I've been reading about L/O's and SLO's for a little over a year now. Stopped to go to Florida and invest in properties at the tax deed auctions. Got very educated about the process but didn't have deep enough pockets. With a new 3 day work week this year, I thought it was time to get moving on a project.

 

So I started thinking about those L/O's and SLO's that I read about a while back and then I came across this web site. CA's seemed to float my boat. I liked that this was short and simple. So, I'm ironing out all the details of a business plan for CA's. I'm thinking . .. I'll form a company that provides a service (finding t/b for home owners) and I'll charge a fee my service (option money from t/:rolleyes:. Thought this sounded like a good idea until I stumbled over the term "Leasing Agent".

 

By definition a Leasing agent finds tenants for apartments, condos and homes. O.K. this sounds a lot like what I'm doing. However in my state you have to be licensed to be a leasing agent. The rule is: you are exempt from licensing if you are an employee of a company that pays hourly/salary. But if you get paid a fee or commission or bonus-then you need to be licensed and work under a broker.

 

When investors were being accused of working without a RE licensed, I just thought they meant selling w/out a lic. I didn't think that they meant Leasing w/out a lic.

 

What is the difference in a CA and what a leasing agent does? How can you do CA's without breaking RE regulations? Can this scenario be done as I have described above? Or can it be tweaked or should the whole concept be scrapped? Are the these answers in the naked investment book?

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Morgan, good question, and one that has been asked and answered here in one form or another on several previous occasions. The short answer to your question is that the difference between what an Agent does and what we do as investors, is that we operate as a principal in the deal. We sign the lease and option agreements between us and the homeowner, giving us a financial interest in the deal. We then assign that deal to the end user, the tenant/buyer. So we are collecting an assignment fee and selling our interest to another party. Not at all what a leasing agent does. They facilitate a deal directly between a homeowner and a tenant, and are paid a fee for their efforts. That's the big difference, and why we aren't brokering real estate without a license.

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the difference is you are contracting lease option the property, and you have a right to assign or sell your contract/interest you may have.

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I see you enter into a Lease w/PO with seller. I thought from a previous post that defines a cooperative assignment as the investor facilitates an agreement between the seller/land lord and t/b to mean that this step of the investor actually leasing the property was some how alleviated from the process of a CA.

 

 

so you ALWAYS lease the property no matter if it's an assignment or a CA.

 

leasing the property 1) gives you control and 2) gives you financial interest which is different than an agent.

 

morgan

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