All Forum Posts by: William Hochstedler

@Douglas B.

How's it coming? Our market isn't delineated into neighborhoods that are section 8 and not, but we've rented to a bunch of them.

I think the waiting list for Section 8 assistance here is 18 months. The situations that we see that require such long-term assistance are single mothers, people with disabilities (often on other assistance), etc and are all over the map in terms of quality of tenants.

A few things I'd add/reiterate.

1. Talk to the section 8 inspector to see what problems they typically have. Our most common fixes were sturdier hand rails and water heater blow-off pipes. No biggie. But things like lead-based paint will be an issue that can cost $$.

2. In your area can you target Section 8 tenants somehow? Working through the program? We advertise listings generally and treat Section 8 the same as anyone else when they apply. My comment here would be make sure your screening policies are consistent for all tenants, assistance or no. Also, make sure you have a documented policy on screening and stick to it. This will keep you out of trouble with Fair Housing. This should also include policies on how you deal with higher credit risks, SD negotiation, late fee enforcement, eviction enforcement, etc.

3. Finally, make sure that your utilities are split on multi-families. Cost recovery or landlord provided utilities can be very problematic.

Hope this helps and good luck!

I knew a guy in LA who somehow collateralized his house to qualify for a Ferrari.

Missed some car payments and lost his house.

Hi Teighlor,

Welcome to Bigger Pockets.

I once read, "Make of your dwelling a profitable investment." You're in a great position to get a head start on many of us who have accumulated life baggage.

Talk to some lenders and find someone who can show you properties. You'll learn a lot during your first purchase and this is a good place for second opinions.

Good luck!

Just looked at the statute. Attorneys, banks, and mortgage lenders are exempt. Nothing about business brokers or private equity (who would not necessarily be regulated elsewhere if they were using their own money).

The list of people that I know (including attorneys) who would be effective in business valuation and a complicated real estate transaction is very very short.

@David Jonsson

The statute also says:

452.17? Penalties.

(1)?Any person who engages in or follows the business or occupation of, or advertises or holds himself or herself out as or acts temporarily or otherwise as a broker or salesperson in this state without a license under this chapter shall be prosecuted by the district attorney in the county where the violation occurs or by the attorney general and may be fined not more than $1,000 or imprisoned not more than 6 months or both.

From this discussion, it seems to be the pattern that's going to be problematic despite many folks here suggesting that this might be a violation of fundamental property rights.

Might be easiest to apologize and re-up your license.

Wm

What gets me and points to the absurdity of it all is that the clause suggests that anyone who establishes a pattern of exchanging interest in businesses (including inventory!) whether or not they contain real property must have a broker's license (or engage the services of one).

This would apply to VC & private equity firms and serial entrepreneurs of any type. Commercial auction houses? Ebay and Craigslist?

I would hope that they have all agents pass the state bar!

Am I missing something, or is this just nuts?

@Wayne Brooks et al

452.2(b) "Is engaged wholly or in part in the business of selling or exchanging interests or estates in real estate or businesses, including businesses’ goodwill, inventory, or fixtures, whether or not the business includes real property, to the extent that a pattern of sales or exchanges is established, whether or not the person owns the real estate or businesses. Five sales or exchanges in one year or 10 sales or exchanges in 5 years is presumptive evidence of a pattern of sales or exchanges."

Does mean that all full time investors pretty much have to have a license in Wisconsin (wholesalers or not)?

If I bought an estate with 6 properties, I'd have to get a license or hire an agent? Or if I traded in used restaurant equipment? Inventory liquidation?

Oh dear.

@Gary Parker

I agree that intent to assign rather than perform on a wholesale deal is problematic. Our state approved purchase contract prohibits assignments and I've never seen the contracts wholesalers are using. This is why disclosure is necessary.

@Matt R. suggestions are pretty sound.

In my experience with enforcement in Utah with both the Division of Real Estate and Division of Occupational and Professional Licensing, they have both told me that they are strictly complaint driven. This means that they are obligated to follow up on all complaints. This might be all that they are doing.

I have found that they both value straightforward honesty above all else. They pull out the stops if they think you are giving them the runaround. I think you can very honestly say that, as Matt says, that your informal partners are industry professionals and lenders. You can also tell them that you have found the use of this term gets you better responses and helps at the negotiating table. You didn't know this was an issue. If it is, you'll stop.

Good luck!

@David Jonsson

I do not pretend to know the laws of Wisconsin or provide legal advice, but a couple of things:

I'm not sure how this thread became a discussion of the license requirements for wholesaling. Wholesaling is simply obtaining interest in real property as a principal and selling that interest as a principal. In Utah (or anywhere?), you do not need a license to buy or sell interest in real property. Was there anything in the letter to suggest that wholesaling was a concern?

Because they asked specifically, I would be more concerned about the use of "partner" in your marketing letter. If you do have a partner, you may be providing real estate services for a third party or have securities issues. If you do not have a partner, you may be misrepresenting your intentions.

@Bill Gulley suggested saying it was your dad who you may consult with or borrow from. You may tell them that you include it in the letter so sellers don't get freaked out when you show up with someone else or something to that effect.

I'd start by being honest with them and perhaps a bit dumb explaining that you are an investor and the partner is your father. If it's a problem, you will quit using the term "partner" immediately.

From my experience here, professional licensing is harder on licenses (including inactive) than non-licensed individuals doing the same thing like acting as contractors etc.

Maybe they tell you that if you're going to continue this, you need to activate your license.

Good luck and keep us posted.

Wm

Welcome Alex,

2007-2009 were 3 years of triage for me. There are a lot of people on BP doing part time RE/Investing with full-time other jobs and there are lots of discussions of how to manage it.

I think SEO would be a great topic for this site. Marketing is a huge component of sourcing and selling properties. Creating a network of reciprocal linking through BP connections is brilliant!

Let me know how I can help.

Wm

RPM is a franchise company based in Ogden. Their corporate model is to sell franchises--so their fee structure is built to benefit the property manager not the property owner. We have seen many people try RPM (in Logan) and leave because of the incessant fees. Different franchises might vary greatly in quality of services. Many owners are drawn to them because of their market reach, technology, and corporate branding.

I've found that the best property management companies are companies founded by investors who grow to a size where they have to implement a formal property management structure to manage their own holdings. It only requires a license for them to offer their infrastructure to third parties. And their management goals are most closely aligned with other property owners.

Wm