In the property industry, it's very difficult to find property dealers that are licensed. All real estate agents must have a license to operate in most states and most counties will not even grant licenses until they undergo a thorough investigation process. These background checks can take months to complete. In the end, the best and most reliable real estate agents will be licensed but it doesn't necessarily mean they have to have a full blown business license. In fact, many property dealers will not be licensed but rather will have the equivalent of an associate's degree or an apprenticeship working with a broker.
It is not uncommon for property dealers to not have a full associate's degree, but they may have some associate degrees. Sometimes a real estate broker will want to include property dealers on their business referrals so it is important to ask the broker for references and information on how the property dealer got their license. You need to understand that not all property dealers are created equal. There are license dealers as well as non-licensing property dealers. Be sure to find out the difference between the two types.
There are a few things to keep in mind when evaluating as is home buyers. Some of the most common questions property dealers face is if they require a state exam for the business or if they only need a simple letter of authorization. There is no standard for becoming a licensed property dealer; however, it is more common for a property dealer to be licensed by one state rather than by several states.
It is also important to remember that just because one broker requires a license doesn't mean that every license applicant is trustworthy. Most dealers have their own loan processing departments so the license you receive may not always be valid. A reputable broker will be able to provide you with a license with documentation proving your legitimacy as a loan processor. These documents should be sent to the Office of the Secretary of State. Know more about real estate at https://en.wikipedia.org/wiki/Real_estate_broker.
Don't be discouraged if you can't find a property dealer that provides a valid license in your area. There are other avenues to consider. You can contact the local chamber of commerce and ask about real estate seminars being offered. You can also call your local zoning board and inquire about obtaining a special permit for the business.
If you are able to locate one of these dealers who buys houses as is in the area, you are still not out of luck. The license that they hold is not a guarantee that they will be a legitimate property dealer. They may have had a previous license, but it may have been revoked. It is always a good idea to do your research so you don't end up purchasing property that you don't qualify to purchase. If you can't get a hold of a license, don't assume that you have no way out. You may be able to find alternative financing or you may have to fight for your real estate rights.
