All Forum Posts by: Mark Rogers

The Arkansas Attorney General filed suit yesterday against an infamous Central Arkansas landlord for violating the Arkansas Deceptive Trade Practices Act. The lawsuit alleges that properties belonging to Entropy Systems, Inc. and its CEO, Imran Bohra, have been cited for code violations at least 160 times since 2016 and that the defendant nonetheless continues to lease the properties without abating the code violations. The action seeks fines of $10,000 for each violation and an injunction to prevent the defendants from entering into lease agreements prior to abating code violations. 

60CV-19-5560 - STATE OF ARKANSAS V ENTROPY SYSTEMS, INC., ET AL

An article in the local paper in January painted a disturbing picture of a slumlord and likely attracted the attention of the Attorney General.  In the meantime, it appears to be business as usual for Mr. Bohra, as he filed a new unlawful detainer action against a tenant today.

Ark DemGaz article on landlord

I like the location for rentals and think the addition will help.  We've tried to buy in that area a few times but have not yet been able to make the numbers work for both us and the seller.  We'll keep trying.  Theft has been a bit of an issue close to the development.  Not sure whether the new development will help with that. Still, I think you'll see more appreciation than many surrounding areas.  You probably also saw that the City tentatively plans on closing the War Memorial Golf Course across the street from the new development and convert it to other park-like uses.  That could also help.  You're in a good location that will likely only get better over the next few years. 

I agree with Zachary & Michael.  Don't feel like you have to go "all in" from day one to make up for lost time since you're in your late 40's.  I didn't start until my mid 50's and have no plans of quitting my day job any time soon.  A friend and mentor who has been in this for decades told me "you can make a fortune in real estate in 5 years ... just not the FIRST 5 years."  Test the waters, and see if you can make money on one or two.  A LOT of folks don't.  

The chart labeled as Little Rock is actually for Central Arkansas, and that Metropolitan Statistical Area also includes Benton and Bryant.

Central Arkansas home prices started 2019 with a slight drop of 0.9% for Q1. This also continues the recent pattern in Central Arkansas of a small quarterly gain followed by a small quarterly loss.  Pine Bluff has shown solid gains for the last four quarters including a 5.4% gain for Q1. If it is a casino bump, Hot Springs is not currently receiving one and has been flat for the last four quarters, including a drop of 0.3% for Q1. Numbers were not yet available for Northwest Arkansas for 2019.

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Richard Ackley is excellent.  https://www.facebook.com/pages/Ackley-Engineering/546044102238754

In a March 20 opinion, the U.S. Supreme Court resolved conflicting decisions among federal courts of appeal, finding that a law firm engaged in only nonjudicial foreclosure proceedings is not a "debt collector" within the meaning of the Fair Debt Collections Practices Act. The Third & Fourth Circuits had found that the Act did apply, and the Ninth & Tenth Circuits had found that the Act did not. The suit arose when a debtor tried to invoke the Act to force the foreclosing law firm to cease collection efforts until it obtained verification of the debt and mailed the verification to the debtor. The U.S. Supreme Court found that the Act did not apply and that the law firm was within its rights to ignore the request and proceed with nonjudicial foreclosure. 

Obduskey v. McCarthy & Holthus, LLP

The revised renter's rights bill is back in play (HB1410).  The bill's sponsor worked with the Arkansas Realtors Association and made enough changes to get the ARA to withdraw its opposition and take the position that it neither supports nor opposes the bill.  The bill needs 11 votes to get out of committee and got 10 votes on Monday.  It's back on the agenda for tomorrow, March 20.  If you have any interest in it, now is the time to let your representative know.    

Central Arkansas home prices finished 2018 up 2.46% for the 4th quarter. With two positive quarters and two negative quarters, Central Arkansas had only a modest increase of 1.87% in 2018. Northwest Arkansas was up 1.8% for the 4th quarter but posted four positive quarters last year so showed 7.2% growth in 2018.

Yes, it looks like most of it must have passed.  Here is the current language of that section:

17-42-104. Exemptions.

(a) This chapter does not apply to:(1) A person not licensed under this chapter who performs any of the acts described in § 17-42-103(10) as:

(A) An owner of an individual freehold or leasehold interest in real estate;

(B) In the case of a corporation, limited liability company, limited partnership or other entity recognized by law holding a freehold or leasehold interest in the real estate under subdivision (a)(1)(A) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity regarding real estate activities involving only the interest of the owner;

(C) An individual attempting to acquire for his or her own use a freehold or leasehold interest in real estate; or

(D) In the case of a corporation, limited liability company, limited partnership, or other entity recognized by law intending to acquire a freehold or leasehold interest in real estate under subdivision (a)(1)(C) of this section, a member, manager, partner, or officer who has authority to make management decisions affecting the overall policy of the entity;

(2) An attorney in fact under a duly executed and recorded power of attorney from the owner or lessor authorizing the final consummation by performance of any contract for the sale, lease, or exchange of real estate, provided that the attorney in fact does not receive or have an expectation of receiving a fee, commission, or other consideration, directly or indirectly, for performing the act;

(3) An attorney at law in the performance of his or her duties as an attorney at law;

(4) A person acting as a receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or of a trust instrument;

(5) A person acting as a resident manager when the resident manager resides on the premises and is engaged in the leasing of real property in connection with his or her employment;

(6) A person employed only at a salaried or hourly rate to engage in the leasing of real property for or on behalf of a licensed principal broker, the real estate firm of a licensed principal broker, or an owner of real estate, if the person:

(A) Does not engage in or offer to perform any practice, act, or operation set forth in § 17-42-103(10) other than receiving a security deposit or payment as permitted by subdivision (a)(6)(B)(iii) of this section; and

(B) Performs only one (1) or more of the following functions:

(i) Delivering a lease application, lease, or an amendment to a lease application or lease to any person;

(ii) Receiving a lease application, lease, or an amendment to a lease application for delivery to the principal broker, real estate firm, or owner;

(iii) Receiving a security deposit, rental payment, or any related payment for delivery to and made payable to the principal broker, real estate firm, or owner;

(iv) Acting under the direct written instructions of the principal broker, real estate firm, or owner:

(a) Showing a rental unit to any person; or

(b) Assisting in the execution of a preprinted lease or rental agreement containing terms established by the principal broker, real estate firm, or owner; or

(v) Conveying information prepared by the principal broker, real estate firm, or owner about a lease application, lease, the status of a security deposit, or the payment of rent to or from any person;

(7) An officer or employee of a federal agency or state government, or any political subdivision, in the performance or conduct of his or her official duties;

(8) A multiple listing service wholly owned by a nonprofit organization or association of real estate licensees;

(9) An officer of a corporation, a member or manager of a limited liability company, a partner of a partnership, or the equivalent of an officer of another form of business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the acts are not performed by the officer, member, or partner for or in expectation of a commission or other compensation resulting solely from a successful transaction; or

(10) A person employed primarily at a salaried or hourly rate by a corporation, limited liability company, partnership, or other business entity acting with respect to real property owned or leased by the entity or an affiliated entity under common ownership or in connection with the proposed purchase, sale, rental, or leasing of real property by the entity or affiliate if the:

(A) Acts are not performed by the employee for or in expectation of a commission or other compensation resulting solely from a successful transaction;

(B) Primary business activity of both the entity and affiliated entity is not ownership or acquisition of real estate; and

(C) Employee is not providing real estate services to or on behalf of more than one (1) entity not affiliated by common ownership.

(b) Any real estate broker licensed by the Arkansas Real Estate Commission on or before January 1, 1985, who is engaged in the sale of real estate by auction only is authorized to employ real estate salespersons to work under the license of the broker even though the broker is employed in a non-real estate-related field and is only a part-time broker.

(c) A person or entity shall not under any circumstance qualify for an exemption under this section if the person or entity:

(1) Obtains an equitable interest in real estate with knowledge that the interest was obtained on behalf of a person or entity that intends to gain an interest in the real estate other than that of ownership; or

(2) Strategically circumvents the requirement for licensure thereby eliminating remedies available to consumers through the commission.

Ark. Code 17-42-104 Exemptions (Arkansas Code (2018 Edition))