All Forum Posts by: Sergey A. Petrov

 Congrats! 

@Leo Landaverde - good work on the municipal requirements. Just make sure that if you buy into an HOA / COA there are no restrictions on that end either. The City / County may allow but your local community, if organized as an HOA / COA, may have some regulations

Agreed with all of the above. I am not an attorney or a tax professional but from what I know do not form a corporation (whether it is a C Corp or an S Corp) for the purpose of holding real estate. A multi member LLC (aka partnership) is the way to go. Do have an attorney draft a partnership / LLC operating agreement. The sole purpose of that entity will be to own and operate the property. To the extent individual partners provide services to the property / entity (management or otherwise) they should be treated as independent third parties providing the same services and getting paid for those services. And through the process of making those decisions you and your partner might find that the LLC (this is the keyword - what is in the best interests of the LLC) may be better off actually hiring those independent third party professionals instead of having partners do the same thing 😁. Unless of course those partners bring the same level of expertise that others would bring at similar rates

@Eric Cunningham - you are in WA. Me too. Assuming your license is the broker license vs managing broker license, yes you have to "hang it" under an existing brokerage. In 2 years (with some exceptions) you can upgrade to the managing broker license and open your own brokerage. Whether or not you are "allowed" to do your own deals will depend on the brokerage you end up with and their E&O policy. Send me a DM to connect. I've been looking at expanding. Tacoma is on the list. Happy to meet in person over coffee, lunch, or happy hour

Or is it more of a who will receive and be responsible for paying the bill? The chances are it’ll stay in your name regardless with it either being sent to your property manager for payment or to yourself for payment. I’d let them manage it unless you are concerned that they won’t pay it on time which may have negative consequences on you (think late fees, water shut off if the non payment goes on too long, being turned over to collections, etc) On the flip side, if you don’t trust them to pay the property related bills, you need a new property manager

Assuming you have nothing in your purchase agreement that says the seller will warranty the roof, do two things:

Check the contractor’s warranty as your first step. I’d be looking for 2 things. First, how long is the warranty and are you still within that time frame. Second (and maybe even more important than the first) is whether or not the warranty transfers to the new owner in the event of a sale. From what I am used to, more often than not, the warranty does not transfer. And when it does there is a separate document that is executed making the warranty “yours”.

if out of luck there, you “accepted” it as-is when you completed the sale. 

How do I start advertising my open heart surgery services without getting a license to practice medicine?

I am seeing the market softening in Seattle. Not crashing, just softening a bit. And the fact that we’ve recently seen several posts from new construction buyers asking if that should walk away and forfeit earnest money shows the general psyche / emotional state of the market. We shall see!

Not familiar with your area’s standard contract but i would guess it is something along the lines of

“I, the Buyer, will buy it from you for $217k as long as it appraises for that

In case it appraises for less I am willing to buy it from you for appraisal + $12k or $217k whichever is less”

i bet you nowhere in there does it say

“I, the Seller will sell it to you for $217k.

I, the Seller will sell it to you for a lot less if it appraises for a lot less. If the appraisal comes back even only at $100k, we still have a deal and I will sell it to you for $100k”

Now flip it around and see if you still feel the same as the buyer (contracts should always as mutually equal as possible).

“I the buyer will it from you for $217k. I the buyer will buy it from you for a whole lot more if it appraises for more. If the appraisal comes in at $300k, we still have a deal and i will still buy it from you for $300k”

Appraisal gap is a form of protection for you as the buyer. It is not a tool to force the Seller to sell something for less than what they want to sell it for.