All Forum Posts by: Julie Sisnroy

 I would agree, but based on that, unless you are drawing a very hard line between active (100% of your time) and passive (0% of your time), IMO 12-20 hours (or even less) a YEAR is pretty close to "passive."  

I guess it depends on what the definition of "passive" (aside from the IRS definition) is.  I have a very hands on PM / Portfolio management team that makes it 98% passive.  Occassionlly (once in 3 years), I've had a semi-large appliance replacement, and even then they took care of it for me. No, it is not 100% passive as hardly anything is - ask a day trader.  So, if 100% no-involvement-whatsoever is the definition, than no, but pretty close. My definition is the amount of "work" I have to do as I believe my time is of value.  

However, I also come from a perspective of also owning several short-term rentals. Owning STRs is a significant amount of work, especially compared to LTRs. I look at a STR as more of a hospitality business than a REI, and you are not only managing the physical property, but you are managing people as well. While, you may earn from the equity standpoint, you are definitely trading time for money. This has never been the case for my LTR, even when I did NOT have a PM.

Of course, the volume of your portfolio is also a player whether you own LTR or STR.  Owning 10 doors is a lot different than 100 doors and obviously less work.

@Mike Boss I JUST went through the licensing process in Nebraska.  As an investor, I always wanted to accomplish this.  However, I would say, it is a lot different being on the other side.  I don't know the market in LA, but I imagine it is competitive.  I am sure you have heard all the statistics on the failure rate of real estate agents. Don't let it discourage you, but also understand it is going to take a lot of work in the start.  Treat it like a business.

I don't know the broker rules in CA, but typically you need experience as an agent first, which makes sense, before you can even sit the broker's exam.  You may not even want to be a broker once you get in the business and realize all the repossibility that comes with it. You may stay a sales agent and meet your financial goals that way.  Focus on that first and learn the business, all aspects, and figure out your way.  Also, have reasonable expectations on number of tranactions for your first year.  I am not saying don't reach for the stars, but make sure they are the lower ones in the sky.  Fpcus on your sphere and building relationships.  Ultimately, that is what it is all about.

Speaking of financials, it is not cheap to be an agent as there are fees associated with it. Every brokerage is different, so the fees will vary - mine covers the MLS, the E&O, the CRM, and the Supra locks, and there are NO other fees until I sell, and then they are minor transaction fees. My splits are pretty good, too. But all brokerages are all going to be different and MANY will not cover those costs.

interview atleast 4-5 brokerages to find the right fit for your goals.  Ask a lot of questions and look at not just the numbers (splits, fees, etc), but the culture, the training, availability of a mentor, etc.  Teams CAN be good (but not all are equal), but you will trade that support for a smaller split - you can decide if you think it is worth it.  I didn't, but the jury is still out.  Check with me in a year.  :)

There are a LOT of solid Facebook groups to join, youTube videos, and FREE information out there.  Tap into that, as there is a lot to learn about the business, but don't chase shiny objects and get too bogged down.  Focus on one or two things at a time.

Lastly, understand you will have to stand out as there are a LOT of Realtors, so you have to be different in some way - get a niche.  It doesn't have to be ultra specific, but you will find your tribe.  It doesn't mean you can't/won't sell or list with others, but become "the" expert in a certain area, especially in a market as large as Los Angeles. Market the heck out of yourself, consider social media.  

If you have ANY questions about the journey as rookie, reach out to me as it is still fresh in my mind!

I was hoping to get more responses here.  :)  Just want to make sure I am on the right track. 

Hi, I have owned a rental property for 7 years and have sold it. I am using my 1031 exchange. The replacement property will go in my single-member holding LLC. There are no other members and no one else on the deed or the new property or the sold property. Just me, just putting new property into LLC.

Does this still qualify?

Okay, it is slowly sinking in... so then what would each of the state (subsidiary/child) LLCs do? I assume act almost as a property manager? So they are not actually on the mortgage, the holding company is correct? So, for accounting purposes, treat holding llc only for purchasing/selling property but day to day (maintenance, repairs, operating costs) go through child LLC. Am I getting this right? I will also need a CPA! ;)

After researching LLCs (the opinions vary as much as what kind of pizza is the best...so I don't want to rehash that), but I have decided to go with a WY holding LLC. Now, I need to create separate operating LLCs under the 3 states where I own property (WY, FL, and MO). I would need the Registered Agent, Operating Agreement, etc.

Once I set up those LLCs, how to I get them under my holding company?  I understand an asset transfer and lease agreements is required ?? (will hire attorney for that).  Is that all that is required?

I am purchasing a FL home using an LLC (no lending issues). Do I use a Florida LLC or the holding company as the name on the contract? As a reminder the only LLC I have set up at this point is the WY holding LLC. Intuitively, it seems I would use the Florida LLC. So what then goes under the holding company or is that just a legal entity?

Last, once the structure in completely set up, what is the best way to move my other assets? I assume they would all move into the respective LLCS (i.e Missouri properties go into MO LLC). I am looking for "best" advice. I have talked to RE attorneys, but even their answers vary and they often speak the legalese language I am not fluent in! Thanks!

I am curious as well!  @Courtney Radmall How did you do and how much has the market changed since this original post and how was self-managing?

Thus post is exactly what I was looking for as well. Looking for creative ways to get past the DTI for STRs. Hopefully we'll get some good responses! I will be in a 1031 situation, so have to purchase something! :)

@Boris Mordkovich This is great stuff! I currently own two STR, but they are managed. As I start to shop for my next STR, I want to self-manage to avoid that 20%+ fee. However, I am semi-tech savvy if I had one system to manage, but with all this integration it seems overwhelming. Is there one or two sites that can do most of this? How does your system compare to Lodgify, Guesty, OwnerRez, YourPorter (there are so many)? If you really are offering (or know if someone) to help set this up, I would be willing to pay--once I obtain my next property.