All Forum Posts by: Teri Feeney Styers

@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.

@Franklyn Douglas III I have invested in tax liens in the past. Here is what is good: in Colorado they pay 9 points above the current US Federal Discount Rate (which is 5.5% right now) - so that would be an interest rate of 14%+. Here is what is bad: in most cases, when people realize their property has been sold in a tax lien sale they redeem (pay their property taxes) - so you may only earn that rate for a matter of a few months. Here is what is good: the county handles all the necessary paperwork and sends you a check. They also give you the option to buy the lien for subsequent years so that you stay in first priority (the whole process takes 3 years before the property is forfieted). Here is what is bad: only about 1% of properties actually end up in the hands of the lienholder. 99% redeem the property at some point. 

@Alan Mills First of all, are you sure you are saving money by not using an experienced attorney? Maybe not... But since that is the choice you have made: I don't know what it is like in Pueblo; but in Mesa County where I live there is a person on staff that walks you through the process and the necessary paperwork that needs to be filed (they don't fill it out for you - just provide the steps). You should be able to get a judgement (writ of restitution) for your losses. Then you have to file that judgement and tap their bank accounts or garnish their wages. And you have to refile on a regular basis. And you absolutely should do that for the past rents and any property damage (and lost rent while you make repairs). However, being worried about finding a qualified tenant in the winter certainly wouldn't be an issue here... the demand for rentals is so high. No so in Pueblo? And here is a suggestion: make that first lease expire at the end of May (either 2024 less than a year or 2025 more than a year). You don't want a lease that repeatedly expires in November.