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All Forum Posts by: Denis K.

Denis K. has started 1 posts and replied 5 times.

Post: How can I help my friend manage a property without a license

Denis K.Posted
  • Rental Property Investor
  • Colorado
  • Posts 5
  • Votes 0

Thank you @Drew Fein! What is the mminimum percentage may I ask?

Post: How can I help my friend manage a property without a license

Denis K.Posted
  • Rental Property Investor
  • Colorado
  • Posts 5
  • Votes 0

Thank you Yvonne. I thought of having master lease with my friend. Of course it has its own pros and cons but the most important question is: would subletting of someone else's property be an activity that require real estate license? How does this work in your state?

Anyone could clarify for Colorado?

Post: How can I help my friend manage a property without a license

Denis K.Posted
  • Rental Property Investor
  • Colorado
  • Posts 5
  • Votes 0

Thank you everyone for posting your comments. My question was exactly of how not to break the law. Since I am not a lawyer and genuinely ignorant of the specific statutes in Colorado (and in other states for that matter) I came to this forum to get broader understanding of what would be against the law and what wouldn't.

Yet as I stated in my original post talking to a real estate attorney and eventually getting a license is still a plan.

Prior to getting the latter I would like to understand in what capacity I can legally help my friend. (I did not solicit their contracting me instead they came to me asking for help. This is more of a courtesy rather than business proposal on my end.)

Any constructive suggestions and references like ones from JD Martin, Nathan G and Max T would be much appreciated.

Post: How can I help my friend manage a property without a license

Denis K.Posted
  • Rental Property Investor
  • Colorado
  • Posts 5
  • Votes 0

Thank you JD and Nathan, that helps.

Would appreciate everybody else chiming in, all thoughts are helpful.

If anyone could recommend a good real estate attorney in Greater Denver area I would appreciate that too.

Post: How can I help my friend manage a property without a license

Denis K.Posted
  • Rental Property Investor
  • Colorado
  • Posts 5
  • Votes 0

My friend in Colorado wants me to manage their property for a fee. In the State of Colorado for this type of business I would apparently need a license, which I am not planning to obtain for a while. My friend and I are in good relationship (fingers crossed, hopefully our business together is not going to ruin this) yet we both want to have something on paper between us. BTW I live in Colorado too.

My question is: what would be a possible arrangement between two of us to have me perform management function and be paid for it without violating the code?

I am not an expert in this but something that comes to my mind is this:

Would it be possible for my friend to setup an LLC, in which I may or may not be a member (that's an open question) and hire me as an employee for this company to manage his own property? Basically this breaks down into a few questions:

- With this arrangement will his participation in LLC, which manages his own property, be treated as "managing his own property" for legal purposes?

- Would my participation in that LLC negate this assertion? Would it be different if I own minority stake?

- Would my being employed by his company and reporting to him as CEO of that company allow me to effectively perform any functions that he delegates me? Meaning from a legal standpoint. 

I would appreciate a real advice and not suggestions like "Go get yourself a license" or "Go talk to your attorney" because I am doing this already and that's clearly the way to go yet I am looking for a viable workaround for the time being. Thank you!