All Forum Posts by: JD Gunter

Why would you partner with someone now that most of the work is done? Finding a place and buying it are two of the hardest steps, which you've already done. It seems like you would be unnecessarily reducing your profit. If you are getting ready to list and sell, you need a real estate broker that knows the market and can advise you on the expectations for condition and finish level in your area, not a partner. A good broker likely has contractors as well if that's necessary. 

Some local credit unions will restrict membership to local residents only, or they won't do out of state deals. There are exceptions to every rule, but that is going to filter out a lot of the credit unions you talk to. 

Hello Karen,

If you are in Colorado Springs, I'm happy to connect. 

Talk to a bank in your area known for financing commercial deals. I would think with your cashflow and equity you would have no problem getting a commercial loan. Get some guidance on what makes sense from the lender's perspective. You don't want to start cobbling together lots of small lines when the time comes to actually do a deal. A commercial broker may also be able to steer you in the right direction.  

I agree with @Chris Lopez. Just because houses are cheaper in Kansas, that doesn't make them a better or lower-risk investment. I would argue that a cheap house in another state is riskier than a more expensive house-hack in Denver. A desirable market where you can live in your investment is a pretty safe bet. 

I agree with @Charlie MacPherson. Once you know it, you are potentially liable. 

Colorado law considers "anything that could impact a buyer's value or desirability of a property to potential purchasers" as material, which is a pretty broad description. 

In my opinion, the potential liability isn't worth not disclosing. You're better off addressing it and resolving it. You can also disclose it and decline to fix it. 

I think that's a great plan. Leveraging your network can be a powerful springboard, especially with so many people in the industry. It sounds like you have all the resources needed to be successful.

Hello Marcus,

In my opinion, getting your license isn't a clear cut decision. I know some investors who have gotten their license and intentionally let it lapse due to the disadvantages. 

If you want to be a Realtor and sell houses, more power to you. It can be a rewarding and challenging job, like many other jobs. 

From the perspective of an investor, it CAN be a good idea, but it can also be a complicating factor that makes growing an investment portfolio more of a challenge. On this side of getting my license and working in the industry, I can tell you it's not a clear black-and-white decision where having your license is obviously better. There are many disadvantages to having your license that I wish I had better understood.

Some of it depends on what you want to do and the long-term route you want to take. Colorado Springs has about 4,000 licensed real estate agents and 94% of first-year licensees will not renew their license (per the local MLS).

As an example, I was recently invited to partner on an off-market wholesale deal that I had to decline because being a broker was a complicating factor that would unnecessarily hinder the deal. It was already under contract and we would have had to do additional disclosures that would necessitate us amending or re-writing the contract.

I've also heard of several agents getting in trouble for buying off-market properties at a discount because the seller later felt taken advantage of and complained to the Realtor association. The Realtor association feels that licensees have an unfair advantage in the marketplace and buying homes off-market at a discount is often construed as taking advantage of the public. One way I prevent this is by having customers sign even more disclosures telling them what their house is worth on the open market and what I plan to do to it, which sometimes creates opportunities for the sellers to object.

On the other hand, someone who is flipping lots of properties every year can significantly reduce their transaction costs by flipping. They cannot, however, contact homeowners directly who are listing with another agent, which is something un-licensed flippers often do. 

Whether you get licensed or not, the information you are learning is valuable. 

I used Kaplan, who is now Brightwood, and I liked them well enough. 

Good luck!

Erik,

Welcome to BP! That's a good word from @Andrew Angerer. I agree with everything he said and I, too, thank you for your service. 

As far as conflicting information and a lack of a step-by-step process, you're certainly not the first to voice that frustration. One problem is strategies that work well in one part of the country simply won't work in another area. In addition to that, one individual might be perfectly situated for one strategy, like flipping, while another is better positioned for something else, and both will find success doing very different things. For someone just learning, it can be confusing and frustrating. 

As far as getting your license, it CAN be a good idea, but it can also be a complicating factor that makes growing an investment portfolio more of a challenge. On this side of getting my license and working in the industry, I can tell you it's not a clear black-and-white decision where having your license is obviously better. There are many disadvantages to having your license that I wish I had better understood. 

Some of it depends on what you want to do and the long-term route you want to take. Colorado Springs has about 4,000 licensed real estate agents and 94% of first-year licensees will not renew their license (per the local MLS).

As an example, I was recently invited to partner on an off-market wholesale deal that I had to decline because being a broker was a complicating factor that would unnecessarily hinder the deal. It was already under contract and we would have had to do additional disclosures that would necessitate us amending or re-writing the contract. 

I've also heard of several agents getting in trouble for buying off-market properties at a discount because the seller later felt taken advantage of and complained to the Realtor association. The Realtor association feels that licensees have an unfair advantage in the marketplace and buying homes off-market at a discount is often construed as taking advantage of the public. One way I prevent this is by having customers sign even more disclosures telling them what their house is worth on the open market and what I plan to do to it, which sometimes creates opportunities for the sellers to object. 

On the other hand, someone who is flipping lots of properties every year can significantly reduce their transaction costs by flipping. They cannot, however, contact homeowners directly who are listing with another agent, which is something un-licensed flippers often do. 

Whether you get licensed or not, the information you are learning is valuable. 

I'd be happy to discuss real estate investing in greater deal with you sometime and show you the exact steps I and others in Colorado Springs have taken. I have experience in every strategy you mentioned, including commercial. I don't know everything there is to know, but I'm happy to show you what I've done. 

Welcome to BP! 

I'm originally from Washington state and have been in beautiful Colorado for the last 20 years. The real estate market here has treated me well over the years. 

Let me know what questions you have and how we can help. If you're down this way, feel free to come by my office or we can grab coffee and talk real estate.