All Forum Posts by: Kevin Fletcher

I agree with the idea that you give it a shot for a little while. If you do, Id make sure to have a good Electrician, Plumber HVAC/appliance and General handy man to go to the property instead of you when there are problems. I have always really tried to avoid big companies for these things because many will charge you a fee for just showing up, but you can get service techs that can do the work without charging an arm and a leg for every additional thing that they add on to the bill

I use First American Title or Land Title for my Purchases, sales and Clients

Colorado has a 17 Page contract. In many instances Colorado is where many provisions that are used nationally were originated. Colorado is a progressive state in this matter and we were actually the first place to have Buyers agents. It hard to imagine, but there was a time that Buyers had no representation in real estate transactions nationally

I just wrote a blog about this, sorry if its a little long

TO GET YOUR REAL ESTATE LICENSE OR NOT TO GET YOUR REAL ESTATE LICENSE? THAT IS THE QUESTION!

I have found that many real estate investors that look to do fix and flips struggle with the decision on whether they should get their license or not. I have compiled a list of Pro's and Con's and Personal Experiences to help people find an answer to this important question.

I have been a real Estate Investor for about 8 years doing all types of investing but mainly Buy and Hold and Fix and Flips. Originally I planned to get my license primarily to just get better return on my deals, but as I was going through the process of school for the license, I really started to get more interested in also being an agent on the side so supplement my investing income. It has been a blessing so far.

Pro's

• Saving Brokers Fees on Your Deals - This is the reason most investors want to do get a RE License in the first place. I saved a lot more in my first purchase/sale with my license (14k) then it took me in money to go to school, get my license, and all the other fees for the first year which came out to about 3k total. If you account for a 6% +/- greater return on your investment, many deals become a lot more attractive. You can afford to do flips that others cant.
• Supplementary Income - Now, with my license, I have worked with client purchases and sales, and have already made more this year with my license then with my investing. If you are waiting for a project to do, or a property to sell, there is time to work with clients in the lulls that flipping can create.
• Understanding of the Process - Going through school was a blessing. I found there is a lot I should have known about the process of buying a house that my former agents never told me. Most agents say "just look over the contract and sign it" which can be dangerous. There was no way for me to fully understand these contract until I spent hours studying them. I know now to always go over the contract with my clients thoroughly for them to understand what they are getting into, and what are the ramifications.
• Control From Start to Finish - With your License, you can buy, project manage, control timeline, design, problem solve and sell the the project. Its ultimate control, You will control every aspect from start to finish which makes it easier to get things done in a timely matter. There are less factors to derail aspects of the project.
• Being in the Real Estate World/Networking - It has really been a help to my investing to be an agent because I am more in the RE world, so to speak. I meet agents buyers, sellers, investors, title companies, lenders, inspectors, and contractors everyday which helps all aspects of my RE goals. That networking is huge. Also for leads on projects, The other day I just found a buyer for one property and they said they needed to sell their house, and it was in poor condition. It was owned free and clear, and it was an instant deal for my next flip.

Con's

• Liability Issues - The truth is, Yes, with a RE license you have more liability concerns. People will tell you its not worth the liability aspect of it, and going through school you will see why they worry. Real estate licensing school just prepares you for the test. The test is predominantly about RE Law, and laws that are broken have consequences. It will freak you out honestly, but after the test is over you will know how to navigate and act lawfully as an investor with a RE License. The main thing that's important to learn is Disclose, Disclose, Disclose... For us as investors, Its all about disclosure of adverse material facts about the property. And above that, don't discriminate or lie. I have not ran into any liability issues and I don't plan to, and there are ways to "CYA" such as written disclosure, contracts, and honest dealings.
• Control from Start to finish - Above I have this as a pro, but It can also be a Con. Having control from start to finish also means that all the risk and responsibility of any investment is on you. You have to be on top of the project, or you are the one who will bear the brunt of problems that may arise in any aspect of the deal. It can be too much to take on for some investors.

Hope this helps

I just wrote a blog about this I hope you don't mind the length:

TO GET YOUR REAL ESTATE LICENSE OR NOT TO GET YOUR REAL ESTATE LICENSE?   THAT IS THE QUESTION!

I have found that many real estate investors that look to do fix and flips struggle with the decision on whether they should get their license or not. I have compiled a list of Pro's and Con's and Personal Experiences to help people find an answer to this important question.

I have been a real Estate Investor for about 8 years doing all types of investing but mainly Buy and Hold and Fix and Flips. Originally I planned to get my license primarily to just get better return on my deals, but as I was going through the process of school for the license, I really started to get more interested in also being an agent on the side so supplement my investing income. It has been a blessing so far.

Pro's

• Saving Brokers Fees on Your Deals - This is the reason most investors want to do get a RE License in the first place. I saved a lot more in my first purchase/sale with my license (14k) then it took me in money to go to school, get my license, and all the other fees for the first year which came out to about 3k total. If you account for a 6% +/- greater return on your investment, many deals become a lot more attractive. You can afford to do flips that others cant.
• Supplementary Income - Now, with my license, I have worked with client purchases and sales, and have already made more this year with my license then with my investing. If you are waiting for a project to do, or a property to sell, there is time to work with clients in the lulls that flipping can create.
• Understanding of the Process - Going through school was a blessing. I found there is a lot I should have known about the process of buying a house that my former agents never told me. Most agents say "just look over the contract and sign it" which can be dangerous. There was no way for me to fully understand these contract until I spent hours studying them. I know now to always go over the contract with my clients thoroughly for them to understand what they are getting into, and what are the ramifications.
• Control From Start to Finish - With your License, you can buy, project manage, control timeline, design, problem solve and sell the the project. Its ultimate control, You will control every aspect from start to finish which makes it easier to get things done in a timely matter. There are less factors to derail aspects of the project.
• Being in the Real Estate World/Networking - It has really been a help to my investing to be an agent because I am more in the RE world, so to speak. I meet agents buyers, sellers, investors, title companies, lenders, inspectors, contractors everyday which helps all aspects of my RE goals. That networking is huge. Also for leads on projects, The other day I just found a buyer for one property and they said they needed to sell their house, and it was in poor condition. It was owned free and clear, and it was an instant deal.

Con's

• Liability Issues - The truth is, Yes, with a RE license you have more liability concerns. People will tell you its not worth the liability aspect of it, and going through school you will see why they worry. Real estate licensing school just prepares you for the test. The test is predominantly about RE Law, and laws that are broken, have consequences. It will freak you out honestly, but after the test is over you will know how to navigate and act lawfully as an investor with a RE License. The main thing that's important to learn is Disclose, Disclose, Disclose... For us as investors Its all about disclosure of adverse material facts about the property. And above that, don't discriminate or lie. I have not ran into any liability issues and I don't plan to, and there are ways to "CYA" such as written disclosure, contracts, and honest dealings.
• Control from Start to finish - Above I have this as a pro, but It can also be a Con. Having control from start to finish also means that all the risk and responsibility of any investment is on you. You have to be on top of the project, or you are the one who will bear the brunt of problems that may arise in any aspect of the deal. It can be too much to take on for some investors.

If you have any more questions let me know

@Stone Timber Thanks for the feedback. I purchased the cabinets from J&K cabinetry they have good prices but you have to jump through some hoops to get your company registered with them to be able to purchase their cabinets. 

in this order I like:

1. #2 

2.  light bulb

That's a great skill to have. May flippers have a lot of trouble choosing finishes. I think you could be of great service to many people. 

ALSO, THINK ABOUT THE DAMAGE TO THE PROPERTY THAT MAY NOT BE EASILY FIXED. MOLD, WATER DAMAGE, AND SMELL ARE ALL VERY COMMON IN GROW HOUSES. IF YOU ARE TO LET THEM RENT, BE VERY SPECIFIC IN THE LEASE ABOUT THEM COVERING SUCH DAMAGES. ALSO THAT SMELL CAN ATTRACT AN UNSAVORY/CRIMINAL ELEMENT TO THE PROPERTY. MANY GROW HOUSES AND DISPENSARIES HAVE BEEN ROBBED AND THAT'S JUST SOME OF THE RISKS YOU TAKE RENTING TO A GROWER

@Jim Adrian I HAVE USED https://www.tenantbackgroundsearch.com/    

FOR THE LAST 5 YEARS AND THE REASON I LIKE IT IS THEY GIVE ALL THE INFORMATION FROM CREDIT TO CRIMINAL RECORDS IN ONE EASY TO READ REPORT.