I would like to do 4-12 Real Estate investing deals per month using Assignment of Contracts. The deals will consist of a Seller, Buyer, and End-Buyer (Real Estate Investor). I would be the Buyer and will negotiate a purchase price and sign a purchase agreement with the Seller and then sell the home for a higher price (fee)to the End-Buyer. I would like to Assign my Interest invested in the home to my End-Buyers. I would post the home online and build a Buyer List so that I would have an End-Buyer to purchase the home? I would like to know how many of these deals I can do per month and year and if I need a Real Estate License to Assign the Contract to End-Buyers in Michigan? Is conducting Assignment of Contracts in Real Estate Investing in Michigan legal without a Real Estate license?
You should hire an attorney to review your particular situation. Initially, the facts you have shared present possible problems.
Michigan's administrative code, R339.22319, requires a real estate license for someone who:
engages in more than five real estate sales in any 12-month period, or
holds himself out to the public as being principally engaged in the sale of real estate, or
devotes over 50 percent of his or her working time, or more than 15 hours per week in any 6-month period, to the sale of real estate is engaged in the sale of real estate as his principal vocation. 4-12 sales per month would quickly put you over the 5 per year limit.
The MI Attorney General has held that a person who purchases and sells real estate as a principal business activity is a real estate broker (thus requiring licensing) even though he does not purchase or sell for others. OAG 4,669 (May 14, 1971).
It is a misdemeanor to violate these codes without a license, punishable by up to 90 days in jail and/or a $500 fine. MCLA Sec 339.601(4). Acting without a license will also prevent you from getting a license later. MCLA Sec 339.602(d).