Do you need your Realtor’s license to flip lease options? It depends. In some States, you do. In some States, maybe you do. In still other States, it doesn’t matter. The fact is – it is usually a grey area, and often times, open for debate. You need to seek the advice of a competent real estate attorney who understands creative real estate investing. And, you should investigate for yourself what your State requires.
I actually do recommend that you get your Realtor’s license. In most States, it is very easy and affordable to do so. There are many benefits with obtaining your license. And I believe these benefits outweigh the costs.
You could argue that we are “principals” in these Lease Options, we have “equitable interest” in these properties, and that we are just “assigning our interest” to someone else – and you may be correct. But in reality, it doesn’t matter what you *think* is right. What matters is what the law says & how your local Real Estate Commission interprets it. Therefore, it is critically important that you review your State’s requirements and talk to a local attorney who understands creative real estate investing.
But what if you don’t want to get your license? Can you still do these deals? YES!! Listen very carefully – you can still do these deals and make a ton of great money – if you do them properly!
I recommend that you do one of two things if you don’t want to get your license:
1) Hire a Realtor to market and sell your homes for you. Marketing your homes is one of the first things you should outsource anyway. So why not hire a Realtor to do it for you?
2) Stay in the middle. When you get a property under a lease option contract, don’t assign it. Stay in the middle and sub-lease the property – as if it were your own investment property – just like a “Sandwich Lease Option”.
In both cases, talk to a local lawyer who “gets it” to make sure it works in your state.
In summary – I recommend that you review your State’s laws for yourself, and talk to a competent attorney who understands creative real estate investing. Consider getting your Realtor’s license. And then find a broker that let’s you keep 100% of your commissions! 😉
These deals are some of the easiest deals in the world to do and can be very profitable – if done correctly. Do your own due diligence & investigate what the requirements are in your State – and everything will be fine.
Here’s to your success! Happy investing!
– Joe McCall