All Forum Posts by: Jason Hendrickson

@Steve Vaughan Oh boy, as an agent you certainly cannot tell your buyer the price is $103k if the price is actually $100k just so you can get a $3k commission. You can tell them the price is $100k and that you will charge a $3k commission, however. Might not seem like a big difference but if you value your real estate license it's definitely a big difference.

1. Typically you inherit the lease. The agreement with the PM company is between the seller and the PM company. You're not obligated to honor that contract. Check the laws in your state to confirm.

2. Depends on a lot of things, but probably slightly higher turnover (but in my experience they also rent out faster). 

Chances are you'll register your company name with the state/county/whatever in which you live and license your business. They won't register the same name to someone else operating in the same industry. 

BTW, VRBO has a nice function under Reservation Manager..Financial Reporting that will let you run a report for a given time period. I just plug in the dates of my filing period and get my totals to use in my quarterly filing. If you use Airbnb, check to see if they remit taxes on your behalf (they do in my state, which is sooo nice).

Many states require sales/transient room taxes to be paid quarterly (or some other non-yearly interval). That said, I just remit them based on the start date of the reservation. I think that so long as you're consistent it's not going to matter. 

No reason to have both an S-Corp and LLCs. Just put each property in its own LLC, with its own bank account and set of books and it will flow through to your personal income taxes (assuming single-member LLCs).

I would change my perspective. If CAP rates are low that likely means appreciation is going to be higher (since demand is what's driving up prices and thus lowering CAP rates). Sure a low CAP isn't appealing RIGHT NOW, but if demand is increasing then prices will continue to rise and the ROI on your once low CAP rate investment might start to seem pretty nice after a few years.

Success is always easy and ideas make perfect sense when it's just ideas written down on paper. Instead of trying for a home run right from the start (i.e. turnkey investment company promising all sorts of things), try starting with buying one property and seeing if you can generate the ROI and hit all the milestones/deliverables you have defined. Work out the kinks there, with your own money, before you go any further. If you're asking for tips/advice on a message board you're likely not ready for prime time, especially if it involves taking other people's money for a business model that hasn't been tested and proven in the wild.

I'd find a duplex to buy and hold. It'll be the least risky and given you already have a full-time job it would require the least amount of your time (provided you buy something that's in good shape with renters in place, obviously). 

Your profile says you're a rental property investor. If that's the reason you want your license then definitely do it. I've saved hundreds of thousands of dollars over the years not needing to pay 50% of the commission on a buy/sale transaction, not to mention the convenience of having access to the MLS and everything that goes along with it. But as others have said, it's probably worthless if you think you're going to find and represent buyers/sellers given your schedule.