All Forum Posts by: Jefferson Kim

Just found this: http://www.dre.ca.gov/licensees/Corporation.html

I just passed my Broker exam and waiting on the confirmation paperwork from the State to finalize my license.

Does anyone know of a step-by-step guide so that I can start collecting commission directly from clients with a corporation I own?

Also, does anyone know the rough time frame it takes to get the whole process rolling? I currently have my Sales Person license and I could always get deals done through the Broker I'm employed with (minus their cut).

From what I gathered, here are some steps:

1) Create a corporate or business entity with an EIN.

2) Obtain Errors & Omissions (E&O) Insurance

3) Register my broker's license with the State to be a Broker/Officer of said corporation (not sure on this one)

I'm scheduled to take the Real Estate Exam on December 17. Assuming I pass it, how would you recommend I find a broker to employ me as a sales person for the most minimal fees?

My family owns hotels, and the plan is that I would represent our family in purchasing properties, subsequently garnering commission after the broker's cut.

I'm not too interested in becoming an active real estate agent, since I manage the day-to-day affairs of the family businesses.
Any recommendations on how I can find a low-cost broker willing to hire me to process my family business real estate transactions?

https://docs.google.com/a/anaheimparkhotel.com/spreadsheet/ccc?key=0Ar8ivt6iydY7dDExcGxrbjAtMnlaRzRHTWN5bjBUeEE#gid=1

I'm currently looking through Orange County for fourplexes to purchase and have created a spreadsheet to help me analyze properties for potential returns side-by-side.

Can anyone tell me if I'm missing any major expenses or if any of my data seems a bit off for the area?

I'm trying to be more on the conservative side of things as I want to be realistic on my returns and because I have to present this information to some potential partners. Some of my assumptions:

- 1 out of 12 months will be vacant
- 25% Down Payment at 4.25% APR
- 2.0% average rent increase per year (though, that's even questionable in the historical data I've seen in Anaheim)
- 30% of Collected Rent as Expenses

I'm aiming for at least a 15% return annualized over five years, including selling the property. I'm a little disappointed in my projected potential returns as investing simply in REIT averages a return of 12.32% over the past 10 years, and you don't have to do ANY work!

http://www.msci.com/products/indices/country_and_regional/domestic_equity_indices/reit/performance.html

Brian Burke Thanks for the info! That's very helpful.

Karen Margrave Thanks for the info.
Cal State Fullerton already has some new apartments that are already renting called "College Town". It's an overall site plan: http://www.fullerton.edu/community/CollegeTown.html

The hotel is family owned. It's franchised, but we own the real estate.

I'm based in Fullerton.

I heard St. Jude's expanding at the State of the City.

Karen Margrave Multi-family within 20 minutes to my Fullerton hotel, the Howard Johnson Hotel & Conference Center.

Sorry to revive this dead topic, but it seemed more relevant than creating a new one.

For a single deal, what kind of partnership/legal structure did you find to be the best when dealing with money partners?