All Forum Posts by: Phu Le

I'm starting a Property Management Company in San Jose, CA. I have my real estate license but I know I need a Broker of Record. How do I go about proceeding with this? I have a broker that's willing to do it but what forms or procedures would I need to do?

The broker does not want me under her own corporation - it's better if she's under my LLC as a broker of record as I plan on getting my own broker's license after my 2 years are up for a regular license. Thanks.

 Yes that's fine, eventually I'd like to grow to 1000+ doors and this is the stepping stone. 

I'm in contact with a few landlords and may have the opportunity to have 30+ units under management. However, the current broker that I am with, EXP, does not allow property management. I do not want to join another brokerage to do PM because I love the team I'm with. 

I will need to start my own property management company and hire a broker of record. 

We can work out the details of the pay/structure once agreed upon. 

Thanks.

@Benjamin Clark Hi Benjamin, thank you a lot for your thoughtful response! I would need to do both Commercial Brokering and property management in one state so I would unfortunately have to "rent-a-broker". I understand this is frowned upon but the broker could also be my advisor/consultant to make sure I would be on the right track and doing everything above board.

Hi everyone,

I currently work as a Commercial Real Estate Associate (I do not have my RE License yet, however I will obtain it within the next month). Once I obtain my license, I am going to hang it with my Commercial Brokerage firm, NAINorcal.

The issue arises as I am also trying to start my own Property Management company - both commercial and residential management. My current firm, NAINorcal, only does brokering and does not manage properties. If I want to do property management, I'd need to hang my license with another brokerage that does residential/commercial management. Is it possible to do this? Hang my license with a commercial firm to do commercial brokering and hang my license with a residential firm to do property management?

Also my end game is to have my own property management company, not just join a property management team under a broker. Is it possible to "hire/rent" somebody's brokerage license to that they could be my broker-of-record but I can go ahead and build my PM company as I see fit?

Thanks!

@Brent Coombs

I think you're right, Brent. I might just be making a complicated way to bird-dog. However, my way allows me to have a tiny bit of equity in the deal so I can negotiate with the seller on behalf of the JV rather than trying to broker between a seller and a buyer. I am probably better off just passing leads to potential buyers rather than trying to negotiate with sellers myself at this point though.

Yea, I've been applying for jobs such as a leasing agent, property manager, mortgage lender, etc. I will also start studying for my RE license soon too.

@Jonathan R McLaughlin @Stephen Brown

Hi guys,

Thanks for your input. My inexperience is really showing huh? I made up the 80/20 ratio because, well, I'm new to the game and do not know better. However, I'm not so caught up on the ratios - it could be 95/5 or 98/2 or whatever. I'm more interested to know if the process is even legal or viable. Is the Exclusivity Agreement something that is even binding or enforceable? I'm definitely willing to put more work in by managing the rehab process or the property but I just don't have experience doing this yet so if my partner is willing to teach me then that'll be great.

The whole reason for this process is so I don't have to get into a contract with a seller without the actual means of executing it. I also want to be a JV because I want a deeper look into how deals are done because I eventually want to be the one taking the risk myself and not just pass leads around. I just have no funds for it at the moment so the only thing I can do right now is work my butt off to find quality leads.

@Nicole W. Thanks for the inspiration Nicole! Congrats on your property! I hope you have continued success.

@Account Closed Yea you hit the nail on the head there. The fast money mentality is what caused me to lose so much in the stock market. I'm beginning to switch gears and mindset to something that is more conducive to growing slowly. Best of luck to you.

@Joe S.

I'm from San Jose, CA but I'm planning to network all across the country.

@Simon W. @Evan Dobrowski @Michael Plante

Hi guys,

Thanks for your input. My inexperience is really showing huh? I made up the 80/20 ratio because, well, I'm new to the game and do not know better. However, I'm not so caught up on the ratios - it could be 95/5 or 98/2 or whatever. I'm more interested to know if the process is even legal or viable. Is the Exclusivity Agreement something that is even binding or enforceable? 

The whole reason for this process is so I don't have to get into a contract with a seller without the actual means of executing it. I also want to be a JV because I want a deeper look into how deals are done because I eventually want to be the one taking the risk myself and not just pass leads around. I just have no funds for it at the moment so the only thing I can do right now is work my butt off to find quality leads.