All Forum Posts by: Teri Feeney Styers

 @Doug Smith and @Jay Hinrichs in Colorado the schooling and testing has a much higher bar. Our required contracts include spelled out options on how a seller will pay a commissions and how the listing agent will (or will not) split that money with a buyer's agent. On our contract to purchase there is a whole section regarding the buyer's agent and who will pay them and the seller's agent and who will pay them. We are pretty transparent. When I read about the "listing" contracts offered to the original sellers in Missouri who started the lawsuit I about fell off my chair - I would sue too! I agree with Doug - this will be very detrimental to buyers. Some will believe they can handle the transaction themselves and will either end up under represented or the listing agent will end up doing double duty to keep deals together. VA buyers will need to beg sellers to pay their Realtors. All truly professional agents will need to work extra hard to explain to sellers why it is in their best interest to offer compensation to buyer's agents. AND agents need to remember that the commission/compensation has always been negotiable. Do I work twice as hard to sell a $1m house as I do a $500k house? Probably not - as house prices (the pie) have risen our slice of the pie has remained the same. Perhaps agents need to reconsider that and offer some tiers and some capped rates. Just sayin...

@Robert Adams As a Realtor I would be cautious about the wholesaling. It could be perceived as a professional taking advantage of naive sellers. You are offering less than market value and then selling that contract at a higher value. Could be perceived as an Ethics or Fiduciary violation... However, you could build your investor-buyer network and partner with one or more who have more money. You have $15k to throw in the pot along with whatever commission you might earn on acquisition. You have expertise in the negotiations and contract writing. As a Realtor you know what the general public is seeking from homes so you can advise on upgrades and finishes and what the ARV would be. And you have the ability to bring it back on the market and represent the sale.

@Sean Winchell If it is a tear down there probably isn't much advantage to a seller carry note. Just go straight for a construction loan. Try a local community bank or credit union. They will expect you to have 20-25% of the cash for the acquisition, tear down, and rebuild. They will loan you the other 75% and help roll you into a long term mortgage at the end. 

@Logan M. - again, I have to note that I don't know all the Utah regulations. Becoming an agent was to assist my flipping business. Once I was qualified to become my own broker I jumped. However, there was an expense of classes and retesting. After that, the costs remain the same (insurance, MLS membership, etc.) I choose to keep a home office; so overhead costs are minimal. I don't answer to anyone but the Colorado Real Estate Commission. Works for me...

@Caleb Graham I am a broker in Grand Junction who specializes in investment properties. Perhaps you are already working with a Realtor here - if not, reach out. You are on the right track... What I find here is that if you are starting with a fresh mortgage at today's rates it is difficult to cash flow. I am always offering up properties to my investor group that are "almost" multi. I show them how to add some value for higher income, or partition off, or finish, or split off some land, etc. in order to bring in more dollars or reduce debt. It can still be done here. 

@Logan M.another thought - why not be your own brokerage? You aren't "new". I don't know the Utah requirements; but in Colorado I bailed from a franchise as soon as I could. I am good at the paperwork required and a self starter. For networking I belong to a local "Independent Agents" organization (no franchises allowed). Some offices are solo like me; and others have a handful of agents. I don't share my earnings with anyone; but this network meets weekly at our local MLS office and gives me the connection we all need. I've made some great friends and we cover for each other as needed (similar to a team). The annual dues are minimal. After our meetings we tour new listings. If you can handle your own paperwork without needing a compliance component, front desk appointment center, etc. then that may be an even better option. I'm a "managing broker" and could add agents if I wanted to. I will say that eXP got kinda a bad rap around here because the new agents weren't getting the oversight and training they really needed. Experienced agents were having to pick up the slack on the other side of transactions. Probably not an issue for a veteran...

@George Zev I have both an S-corp and a Partnership in Colorado. The only cost is $10 each per year to stay registered with the Colorado Secretary of State. Until you have established track record you probably won't find a lender willing to help you acquire (mortgage) a property in the name of an LLC. However, once you have the proper paperwork in place you can open bank accounts, get credit cards, have utilities, etc. For flipping my accountant recommended an S-Corp (flipping income is handled differently and so is insurance). For holding, a Partnership or LLC is fine. The paperwork you need should be available online and cost to set up is minimal or free. Articles of Organization (depending on the entity you choose), Statement of Authority, Operating Agreement (can be optional), Employer Identification Number (EIN). Your entity will need a name and you can check the SOS database to make sure there isn't someone out there already using the name you choose. Other than lending limitations, I can't think of any cons - always better to have clean, segregated bookkeeping and general separation between what is "business" vs. what is personal. Tax implications? Check with your accountant; but all profit/income should be pass through and show up on your personal return. However, you will have to file a return for your entity and if you don't do that yourself then you could end up paying a tax preparer.

@Dominic Richardson Make sure that the home is HUD certified (educate yourself on what that means.) A home on a rented lot is harder to sell because of mortgage / borrowing restrictions (educate yourself on local lenders too). If it is HUD certified and on dirt that is owned rather than rented then you might be okay...

@Corby Goade if you can't get the desired rent for the fabulous view and golf course access then it probably isn't a great rental. Sounds like you are in love with the house and trying to force the deal. So - what if you buy it and move in? Then rent wherever you are currently living. Would that make more sense for now?

@Mike Romano homes that were purchased through HUD (repos) are exempt from the rule.