All Forum Posts by: Account Closed

Thanks @Christopher Phillips, that's what I had figured.

@Bob B., I think that's the direction I'll take with either an hourly rate or a flat fee for open houses and showings. At the end of the day, it would be easy money for a new agent since I don't plan to use the MLS and I'd be the one handling communications, applications, background screenings.

It's also an opportunity for the agent to get exposure with potential future clients. Win-Win. 

Any idea on a general market rate for leasing agents? $13 - $17/ hour? 

Hello All, 

I'm considering starting a property management company with the goal to remove myself from as much of the "on-location" activity as possible. This will require a sophisticated software (electing to use Appfolio) and well documented processes. 

My question is if open houses and prospective tenant meetings need to be hosted by a licensed broker, or if I could contract this out to an unlicensed individual. 

The marketing would be limited to free services (ie. Zillow, Trulia, etc.) and I would be managing the listing posts, tenant screening and communications remotely. All I need is someone to open doors and direct questions back to me. I would then follow up and manage the application process through Appfolio. 

Rather than pay out a significant commission to a broker, I'd like to limit that expense. 

Does anyone have experience with this type of setup? 

Thanks! 

That's a great point @John Yousef, I'm going to take a pass on this place. 

Thanks all

Hello All, 

I'm using a recently sold comparable property to analyze an offer price. 

Here's the situation: 

These are both similar duplexes. 

Cap Rates for both properties are 6%. The comparable (recently sold) property has rental income that is $150 more than my target property. 

For the sake of the example we can say that the first property sold for $375,000

Can someone show me how to apply these numbers to determine what discount would make sense on the offer price? 

Thanks!

Interested to get advice on what range of discount people have seen on properties that are adjacent to loud public transportation. I'm looking at a brick 3-Flat in Chicago that is immediately next to the elevated train line. Since this would be buy-and-hold, I'm not overly concerned with resale value at this time, but curious on what this might mean for rent and how I should factor that into an offer. The seller has provided the rent roll but as typical, they claim these are below market rents. Thanks for the help.

Hi @Jon Nelson, what kind of help are you looking for? I'm an agent/investor in the NW suburbs area and may be able to connect you. 

Thanks for the perspective all. 

Hello, I currently have 5 rental properties that are each mortgaged and in my own name that I'm considering an LLC or umbrella insurance policy for asset protection. My lender is trying to determine if that would violate the terms of my loan. Does anyone have experience with this? Is every lender different regarding their policies? Or does anyone have insight if an umbrella policy is sufficient? Thanks

Hello All, 

There are a number of posts about partnerships, but few discuss the nuances of tax implications, especially when one party is primarily interested in this investment for the tax incentives. Would appreciate hearing from you! 

The situation: 

A family member would like to be a silent partner and supply the equity for a buy-and-hold deal. They are looking to diversify their investment portfolio and benefit from tax advantage of real estate.  

1st Question) From your experience, is the tax benefit taken on annual cash flow more valuable than the potential for capital appreciation through leverage. Reason this seems important is that it would help determine strategy of a larger vs. smaller downpayment to increase cash flow or increase leverage. 

2nd Question) I've read about "special allocation" of taxes that allows for the tax gains/losses to be distributed in a manner that is not equal to the ownership stake. If we are an LLC with 50/50 share of equity and cash flow, can the silent partner take a 75/25 cut of the tax gain/loss?

3rd Question) Seems that many banks will not lend to an LLC, especially a newly formed one. If the silent partner puts the mortgage under their name, can they claim a larger tax gain/loss than myself?

4th Question) General question about partnerships - What have you found is a fair division of equity/profits/losses? I've heard many people suggest that if the silent partner brings in all the equity, then a 50/50 split with the general partner would be fair to compensate for finding the deal and managing the property. 

Thanks for your input! 

Keep in mind that many agencies offer their agents an incentive to recruit new agents. Make sure you get in with someone who does not just consider you as an easy bonus, but will actually offer their time to help you grow.