Question for Michigan Land Flippers!


First post in here, loving this resource and all the other info on this site! Incredible!

For context; I have done 5 deals in Michigan so far! Buying small vacant lots up north (1-2 acres) and reselling them (self-closing on contract for deed) in the Metro Detroit area… I have one more lot that I own and am looking to buy my 7th and 8th properties this week!

With that said…I came across a law in Michigan that says you cannot sell more than 5 pieces of real estate in any 12 month period if you do not have a brokers license! I am wondering if anybody has come across this issue and what my options are?? Do I just list with an agent? These lots I am buying are like $3-4k and I am reselling for $10-15k on seller financing…using agents and paying commissions would cut into profits pretty good so if I can avoid it I would like to…plus I am not sure they can sell them as fast as I can, I am selling within a couple of weeks using FB marketplace

Any advice would be greatly appreciated!! Thx to anyone that can help and read my whole question! lol

@djtrupia welcome to the forum! Good to see another Michigander here.

I have heard of this rule before, and this isn’t legal advice, but one way to get around this might be setting up multiple LLCs and maxing out the 5 transactions for each one (or even buying and selling some of them in your personal name, or in the name of a self-directed roth IRA, if you ever decide to go that route).

Or, as you said, you could bring on an agent or two and have them go to work for you (a lot of land flippers are doing this anyway because it takes such a big workload off their plate on the selling side).

As long as the agent knows their stuff and they’re actually bringing value to the table (besides just helping you get around this rule), it could be a good strategic move. There are A LOT of clueless agents out there, especially when it comes to land, so be sure you’re finding a good one who understands the local land market.

See this blog post if you haven’t already - it will give you some ideas on how to find a good one.

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@retipsterseth thank u so much for the reply man! yea I have considered the multiple LLC route and that looks like what I am gonna have to do for now, especially with these smaller pieces…once I move up to bigger parcels I’ll probably start utilizing the agents!

Loving all of your content and will probably pull the trigger on getting the entire course soon! A thousand times, thank u!