All Forum Posts by: Jonathan Makovsky

Thanks so much @Jason Eyerly. I was at the last BP meet-up in NYC with @Brandon Turner and @Darren Sager but I haven't seen a steady one in NYC, and that's what I'm looking for.

Hi @Peter Gaston!

I am in the NY area too - welcome aboard.

Is there a NYC BP meet-up? I saw that there was one back in August, and then the one I attended a couple of weeks back, but I'm not sure if it has been steady in New York. If not, please let me know if anyone in the NY area would be interested in having one started on a monthly or bi-monthly basis.

I would be happy to take the lead in organizing it - I don't know the first thing about what needs to be done - but I don't mind doing the legwork in finding out. I can also ask some members from other cities what they are doing.

Thanks!

Welcome @Ionie Scott!

You're in the best place to learn. If you haven't already check out the podcast, it's free and priceless information on many different angles within real estate investing.

Best of luck to you!

Welcome Account Closed

Thank you all so much for your replies and help!

What is the general sentiment from RE brokers regarding salesperson licensees that want to be sponsored only to gain MLS access to invest for themselves (not for outside clients)? Do brokers view that salesperson as an unnecessary liability? Or could it be easy money for the broker, since the salesperson is independent, but will still split the sales commission?

Hi BP, hope you're all staying warm. Any help with the below would be very much appreciated:

I completed the prerequisites to be a real estate salesperson with the primary intentions of gaining MLS access (not to sell real estate). With that in mind, I have a few questions:

1) What is the general sentiment from RE brokers regarding salesperson licensees that want to be sponsored only to gain MLS access to invest for themselves (not for outside clients)? Do brokers view that salesperson as an unnecessary liability? Or could it be easy money for the broker, since the salesperson is independent, but will still split the sales commission?

2) I completed the salesperson prerequisites and passed the exam in NY, but I want to be licensed in CT. The good thing is that CT shares reciprocity with NY, and one of the requirements for reciprocity is that the sponsoring broker needs to be licensed in both NY and CT. Has anyone dealt with something like this before? Is there a good way to research brokers that are licensed in both states?

3) What kind of broker might be most advantageous for this situation? Bigger brokers, smaller brokers, favorable commissions, any other criteria?

Thanks again.

Great job for putting this together, looking forward to meeting everyone there.

Hi @Joseph F. ,

I want to preface this with that I have not done this myself yet, so there are definitely better people on BP to help you out. With that said, here is my understanding of structuring deals:

• "How is ownership of the property held?" If you're placing the property in an LLC, then the LLC owns the property. All profit and loss allocations will be based on the operating agreement. It would probably be best to hire an attorney for the Op. Agmt.
• "What percentage of the property is fair for me to own?" Going back to the question above, assuming the ownership of the property is in the LLC's name, then the property will be owned by the LLC, but that is less relevant than the operating agreement which defines the profit and loss allocations. So if your next question is...
• "How should I set-up the profit and loss allocations on the operating agreement?" The first thing to consider is every investor is different and has different appetite for risks - or might even have other considerations in mind - so no two deals need to be structured the same. Try to put yourself in the investor's shoes and run the numbers on a deal based on the different splits you mentioned above and see if you feel comfortable asking an investor to invest based on those numbers. For example, if you find a property that can return 30% cash-on-cash a year, then you might be able to easily find investors to split the profits based on a 50/50 split every year. However, if you find a deal that's returning 3% cash-on-cash you are probably going to be hard pressed to find an investor based on the cash-flow alone.
• Also, as Dion mentioned above and others mentioned on BP, you should always put a management fee in your underwriting regardless of who manages the property - assuming the quality of work is the same. The allocations on the profit should not consider a property management fee. A property management fee is an operating expense.
• Final comments: The best way to get a larger percentage of the deal is to find the good deals, because the better the deal the more leverage you will have with investors.

Hope this was helpful.