Wholesaling CEOs Among Few To Retain Title Under New NY Law
In New York, the law has cracked down on real estate professionals, resulting in thousands of dollars of marketing having to be trashed, websites changed on the fly and many losing their job titles. So are wholesaling CEOs next in the firing line?
What just happened in NY? Why the huge change? Will it spread, and how much will your title cost you?
This actually isn’t a new law, but rather just new enforcement of an existing one. Apparently, it is actually illegal for real estate professionals to swagger around with fancy titles and corporate ‘honorifics’, which they haven’t really earned.
What this means is those boasting titles such as ‘vice president’, ‘managing director’, and such, without actually being involved in those official roles can be fined $1,000 for each violation. So business cards are being dumped, billboards torn down, websites rewritten and Realtors being demoted.
While this is mainly targeted at real estate brokers and agents, could wholesaling ‘CEOs’ and their staff be under the gun now too?
This may have begun in New York, but just like the real estate rebound, the ripple effect could have the potential to sweep the country. So what moves do you need to make?
Employees, and freelance contractors of real estate investment companies could well be under the same scrutiny around the country in no time. Of course it’s not really about the principal, it’s likely a lot more about bringing in revenues for local government, and that’s on top of the new IRS witch hunt for small businesses owners they can squeeze more tax juice from.
So making adjustments early may be smart for wholesaling CEOs. Unfortunately titles were cheap perks to giveaway. The cost the company nothing, but made staff feel great and sometimes will to work for less just for the name.
Still, providing you are using official corporate titles, there are plenty of creative and fancy ways to dub employees. Or let them choose their own.
This may not directly affect real wholesaling CEOs and their own titles, but some would still argue that there are benefits of not being the figure head anyway.
From the outside looking in, everyone is envious of the title, but some investors may prefer to take a lower title for strategic reasons anyway. It could add more credibility to the firm, and make interactions with consumers easier.
However, of course there will be those wholesaling CEOs that may keep their chain of titles just to rub in the faces of Realtor counterparts that lost theirs. Maybe even use it as a marketing tool – “You get to deal direct with our CEO!”
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