All Forum Posts by: Drew Fein

@Bryan O. and @Garry C., thanks for orchestrating!  I hope to make it out to one soon.

Happy Birthday, @Kyle Doney! Thanks for sharing. 

This scenario sounds like unlicensed real estate brokering to me, too.  As @Matt M. alluded to, if you violate Colorado's Foreclosure Protection Act laws, you don't get a civil penalty - you go to jail.  So purchase foreclosure properties with caution. 

This post does not constitute legal advice and does not establish an attorney-client relationship.

Thanks for the shout out, @James Carlson!  I'd be happy to help, @Adam Bauman.  Great advice from @Bill S. and James Carlson already on whether to divide the duplex.  

@Robert Herrera, my comment was because you made it sound as though there was a separate entity for the property management company.  

If you own a property at 123 Main Street in 123 Main Street, LLC, but you want to manage it with your separate property management company, Property Management, LLC, then Property Management, LLC must be a part owner of the property (i.e., a member of 123 Main Street, LLC). Make sense?

@Robert Herrera I would like to caution folks reading this thread that, if not done properly, doing what you propose re: the property management company can turn into a complaint with DORA for unlicensed real estate brokering. You must be a licensed real estate broker to manage property in Colorado unless you own a certain interest in the property, or you are an on-site property manager for a certain type of property. So do not start managing property through a "management company LLC" without seeking advice from an attorney (not to mention, I'm not confident it prevents you from getting sued personally anyway).

Welcome to BP, @Zach Kiser! Unfortunately, the strategy you suggest does not work in Colorado. Here, an LLC property management company cannot manage the property unless it owns the property or it's a licensed real estate brokerage. You can lease the property to your LLC which can sublease to your tenant, but that certainly doesn't afford you the full protection of the LLC.

Don't get a lease off the internet (including LawDepot's lease, it has problems), buy one from a Colorado attorney specializing in real estate. It's the most important component and worth the couple hundred bucks.    

@James Carlson thanks for the shout out! @Erika C., I would be happy to speak with you. 

Hi @Adam Lendi, welcome to BP!  Are you a licensed Colorado real estate broker?  In Colorado, property managers must be licensed real estate brokers unless you're managing only your own properties.  Thought I'd check on that aspect first.