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Brent K. Gon…, Other/Just Looking in Grand Rapids, MI

Do I need to work for a mortgage company in New York to buy and sell homes?

Asked by Brent K. Gonzalez, Grand Rapids, MI Tue Apr 17, 2012

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You will need a real estate license if you plan on selling for others/helping others buy; you won't need a license if the homes are being sold by owner...
1 vote Thank Flag Link Wed Apr 18, 2012
You may need to do a little more research before jumping in. Good Luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
1 vote Thank Flag Link Wed Apr 18, 2012
For Sale By Owner does have its limitations.

IRS rules on "Dealer Status" can come into question For Sale By Owner. See my blog, below

"Many investors that buy and sell real estate want to know when they are crossing the fine line from being an investor to becoming a dealer.

It is one of the “gray areas” of IRC Section 1031. A dealer can have properties that he uses for his business, but he is also entitled to be an investor like anyone else. The best source that can be referred to are 9 points that the tax court used to determine “Dealer Status” in the Klarkowski court case.

These 9 points can help an investor to determine if they fall into the dealer category:

1. The purpose for which the property was acquired.
2. The purpose for which the property was subsequently held.
3. The extent of improvements made.
4. The frequency, number, and continuity of sales.
5. The extent and nature of the property within the transaction.
6. The ordinary or general business of the taxpayer.
7. The extent of advertising and promotion for sale.
8. Whether the property was listed with a real estate broker or other outlets.
9. The purpose for which the property was held at the time of sale, as opposed of the time of acquisition. "

This is where you need a very good Real Estate attorney to help you with the gray lines.

In short, use a Licensed Realtor to buy most but SELL all of your properties.

Now the questions that come in are:
if this is a primary source of income( more than 50% of your income is derived from):
if you are buying and selling more than 2 properties every 3 years.
if you are FLIPPING, and NOT buy and HOLDING properties

Then most likely, YES you need to be a licensed Dealer. In many states that Dealer means you must be a Licensed Real Estate Broker, not just an Agent to buy and sell Real Estate for yourself.
DEFFINTLY you must be a Realtor if you are attempting to represent other individuals while buying and selling Real Estate.

Large corporations may be exempt when liquidating Real Estate holdings.

Good Luck

Tom
0 votes Thank Flag Link Wed Apr 18, 2012
No you would need to work for a real estate broker.
Tom Brady SFR, e-PRO, SRES GREEN BPOR
Licensed Real Estate Salesperson
Notary Public, Retired N.Y.P.D. Lt.
631-682-8660
Tom@BradyFamilyRealty.com
http://www.BradyFamilyRealty.com
"We treat you like family!"
Charles Rutenberg Realty, Inc.
255 Executive Drive - Suite 104
Plainview, New York 11803
0 votes Thank Flag Link Wed Apr 18, 2012
I"m not sure what your question is. You do need a preapproval letter if you are going to be purchasing build a relationship with a banker or mortgage broker. Then get yourself a good buyer agent, to help guide you through the process
0 votes Thank Flag Link Wed Apr 18, 2012
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