All Forum Posts by: Gregory H.

You may need to get out of the property management business if such insignificant issues cause you to write such a large post. 

If you are managing other people's property, you need a real estate license. You can't become a broker unless you have been an agent for a certain amount of time and done a certain number of transactions. That means that you have to run your property management business inside the office of a licensed broker until you have fulfilled all qualifications to become a broker and open your own office.

Only if you think that you can get substantial long term capital gains in this particular market, thats the only way this makes sense. Obviously if you put near zero into a deal the returns are going to be high thanks to leverage, but high unexpected costs can wipe out years of profit in one fell swoop.

Agreed with @Christy Winchester, this sounds like it would blow up in your face. How would the database ensure the information was accurate? Additionally, how would you know it was the same person given that there are hundreds, sometimes thousands of people with the same name, would this database post social security numbers, haha? How often are you doing cash for keys on how many properties? I have about 20 properties, and haven't had to evict or do cash for keys once in the past 5 years, what quality properties do you invest in?

How low would this take your cash if you did the deal? What happens if you need some decent capex in the first couple years like new HVAC systems, new roof, etc. Would you be able to cover them with your personal cash without a struggle? How much vacancy/credit loss can you handle? With a single 2-4 unit investment, if one tenant stops paying, and NJ being the tenant-friendly state it is, what happens if it takes you 3-6 months to get the current tenant out, can you weather that?

In PA, there is no transfer tax between immediate family members, so you don't have to worry about that (have a lawyer do the transfer paperwork so you know it's done right). Just understand that once you transfer it from yourself to an LLC, you will have to pay full transfer tax, which is 1% as the person selling, and 1% as the LLC buying. If it is in Philadelphia, there is another 1% on each side. I would not recommend paying 2-4% of the property value just to have the property in an LLC. Just be well insured at the individual property level and throw an umbrella policy over everything for additional peace of mind.

You cant just become a broker in PA, you need to have a salesperson license for multiple years first and do a few dozen transactions before you are even allowed to get your brokers license. Additionally, unless you plan to do a substantial number of transactions yourself, or plan to actively use your license to work with clients, the cost/benefit typically isn't there.

this may be a non issue. I had a tenant ask to break her lease early and leave end of May. I listed it at the beginning of May, found a renter to take her place with just a few days between. That renter rented the place without an in person showing. You have a ton of time, just take good pics, post it everywhere, take some video to give prospects a better sense of the layout/flow, and don't worry about it. Honestly, this listing for me was easier than most, because the prospective renters were understanding given the situation, and I never had to visit the property to conduct showings either, haha

Tohickon Settlement - they're out of New Hope, PA, but also have offices in Philly & East Brunswick, NJ. Use them for all title work & closings, residential & commercial.

The vast majority of sellers & listing agents will require it so that they know you can afford to purchase the property and aren't wasting their time. Just because you are able to get a pre-qual / pre-approval from a bank does not mean you will make it through the bank's underwriting process. Assuming you are working with a buyer's agent, they should have had you fill this out before you even started looking for a property.