All Forum Posts by: Brett Deas

I would suggest house hacking for a few reasons.

1. You can get better rates and terms with a house hack and build more principle faster

2. Helps cut the teeth with property management without you having to deal with college kids, and it being a distance away so that way you can vet out future PM's

E&O is errors and omissions insurance. Every broker in the state of Colorado is required to have it. It covers all of our real estate dealings.

Sorry I guess I was confused with your original wording. In Colorado the property management company should be a brokerage itself. 

Throw it up there even if you don't have great photos yet, but definitely get them as they are a necessity. The verification doesn't have a great return on investment but they only look at the county registered documents. 

I would say if it isn't broken don't fix it. What you are buying is working well so why would you change that?

For me it would highly depend on the property itself. Almost always you have to have some split of cashflow and equity but it depends on what the other person wants as well. For example:

My first deal I had an equal 50/50 everything partnership going into it but then later found out they didn't care about the cashflow and only the appreciation. So we changed the structure to where I got more of the cashflow but then they put whatever cashflow split they had into principle payments so when we exited the place they got more appreciation because of those payments. 

Have you talked with your agent about doing this type of thing? Many brokerages here don't allow their agents to do property management because of the hassle it is on the brokerage. But if their brokerage let's them do it then they should have a good lease for you. If not then I have a list of lawyers who can provide you one that is essentially bullet/eviction proof. 

As far as insurance goes (I am by no means an expert) as long as they have the E&O insurance they should be good. If something does happen they only pay a one time fee for having a claim against their insurance but there is no premiums for our insurance, only a subscription so the insurance should be good.

 I never had a problem with getting the listing up, ours was after it was up but a duplicate listing was showing first and ours was inactive. What proccess are you wanting information on?

So what I am essentially reading is you want to be the property manager?

If that is truly the case then charge what a property manager charges. For STR's that can be in the 30's or 40's. But to get equity in the property would be hard, especially because you don't already own it. If your friend is nice then it could work but no-one I know would give equity for just being a PM.

Do you have enough equity from your past deals to use? 401k? Or you could do the longer process of trying to raise private capital. That is what I do and it works extremely well. 

To preface what I am about to say, I know the founders and owners of furnished finders and all of their subsidiary companies. 

The company sucks, the support sucks, the chatting system on any of their services suck, the website is outdated. My personal support experience has been terrible with them. They say wait around 48-72 hours for a reply on the furnished finders website (on the payment/background check platform the live-chat option is very quick) but it took them a few weeks to get back to my request. If your issue is pressing then keep calling them, if not then just sit back and wait because it isn't worth the time and effort to keep trying to reach them for now.