All Forum Posts by: Mindy Jensen

All state laws are different, but out here in CO, you must practice under a licensed broker for two years before you can strike out on your own. I will be losing money until I make my first transaction, which will probably break me even. Many agencies require that you split your commission with the licensing broker. Some cases are up to 50% of your commission. I would look around for a much smaller percentage split if you have to be licensed under a broker for any length of time. But Steve Baldwin is right, knowing the laws can be uber helpful! 

Good luck!

@Edward Briley 

I just received my license in CO. If I lived near you, I would show you 1000 properties all day long, for the exact reasons you stated. You will bring me repeat business, and you will recommend me to everyone you know. I hope you keep looking for the right agent. I think a new agent would be the best bet for you. Good luck!

Hi.

I am a new real estate agent. I may be facilitating my first sale soon. I am looking for an accountant in or near Longmont.

Thank you.

My city offers classes for small businesses. One instructor, who is an attorney, advised multiple LLCs, as every individual LLC's assets can be "shared" through losing litigation. Example, you own 5 rental houses, under 1 LLC. An accident occurs at one house, the assets from all 5 rental houses can be combined for a larger liability. Same 5 houses, now owned under 5 individual LLCs, only one house is considered for liability should an accident occur. Less risk with more LLCs. One blanket LLC to own all others, keep separate from your personal finances. Good luck!

I have to argue with the comments about using the cheapest paint and getting stock colors. I use Behr interior paint with primer. It costs a touch more, but covers in one coat. Paint every single wall in every single unit the exact same color. Leave a small amount in a plastic jar for the tenants to touch up, or just touch it up yourself between renters. I bought cheap paint once, and it cost half as much as the Behr, but I ended up using 5 coats to get coverage. Not worth my time.

Also, I would stay away from laminate flooring. My experience is that when it gets wet (and if you are renting to college kids, it WILL get wet) it expands and separates. Unfixable, you have to replace it all. Go with vinyl sheets, like linoleum. Good luck!

Hey Simon. I would recommend finding a RE attorney and asking him all these questions. Sellers market or not, saving that chunk of change in commissions is huge. If you are a first-time buyer, you should have some advice, and an attorney is a great source. Make sure you find a good one, not just a cheap one.

I can recommend a great lender who I have used the last 7 times I have bought or refinanced. No one can touch his closing costs. He is amazing. Message me if you are interested.

Hey there! I am just north of you in Longmont. The City hosts small business "classes" and one was presented by an attorney, who recommended that everyone get an LLC for almost any small business. Each property gets its own LLC, and one umbrella LLC owns everything. Limits your personal liability if you keep the LLC separate from your own personal dealings, and shields every property from liability from problems with other properties you may own down the road. (Think BIG!) Good luck!

"Would it be OK if I ran daycare out of this home?" Um, no.

"I have 3 large dogs. Would you put up a fence?" On this 1/2 acre lot? probably not. You must have missed the 'no pets' part of the ad...

"I can't afford the security deposit..." As she drives up in a brand-new, $80,000 SUV. Good luck with your search...

Helen,

I agree with Aaron. He has given you great advice. Most BP responders will be honest, but not mean. If you are really looking for advice, listen to them because they will not steer you wrong.

BP has a great podcast where they interview a lender, who tells about how his lending institution reviews the property to determine if they will make the loan. Very interesting. Of course, I can't remember what podcast number it is. Sorry. Maybe someone else knows?

Good luck!

Hi Theresa.

First of all, I wish you luck with your project. It can be daunting to take on such a seemingly large project, but tackle each job and it can get done.

I totally agree with Engelo about making the place look un-renovated for as long as you can.

I have a couple of comments regarding the work you are planning. First, you mention that you are getting the exterior paint tested for lead. If you are planning on painting it anyway, I would skip that step. If it was built or permitted before 1978, chances are really good that it has lead. If it was built after then, no lead paint. If you are going to encapsulate the paint anyway, I wouldn't think it would pose a threat to the inhabitants. (I have no knowledge of the laws of your state, but a little research could save a lot of hassle...)

You say repurpose the hardwood floors. Do you mean refinish? If it is going to be a rental in a lower-income market, does it make sense to spend the money to repair, only to have them scraped up again?

"Gut all walls and floor in kitchen down to the studs" Why is this necessary? If the floors are unable to be repaired, replacing them makes sense. What state are the walls in? If it is just random holes, they can be fixed. Talk to a drywall person and see if it can be salvaged.

As for landscaping, minimum is key. Mulch, rock, anything that needs no water. Renters tend to not take care of the plants, and no need to spend money on plants that will die without water.

The last question is the gut and redo of the balcony. How much work is needed?

I am playing devil's advocate with these questions, but you want to make sure you are doing all the work you need to get the building up to code, but spending the least amount of money that you can safely spend, to maximize the return.

Good luck! I am excited for you, and can't wait to see your results!