All Forum Posts by: Matt Shields

I think the problem is that having the property in your name outside of the LLC defeats the liability protection which is the main reason you want an LLC. BTW - I'm not an attorney, so I may be wrong or just lying to you.

So you just got your pilot's license and you want to fly a 747 filled with passengers? What could go wrong? Any experienced agent will tell you that getting your license gives you just enough knowledge to be really dangerous. It isn't the end of learning but just the beginning. I'm surprised that they allowed you a brokers license without any agent experience, it usually takes years working as an agent before you can become a broker. If when you harm someone you will be held to the higher standard of a broker and you will be told: "If you didn't know, you should have known".

"until I really understand all the things a Broker really needs to know" Would you want to be on a plane where the pilot is learning to fly? I would recommend that you become a copilot and find a good broker to work under and learn from. Good luck.

So a modular homeowner has to file to be affixed like a mobile home? Would it be considered personal property left after a sale? What are the laws for abanded property after a sale there, can you claim it after notice? Sorry no answers, just questions. BTW I'm not an attorney, so don't take any of my advice.

It's not a state requirement here, but I put them in rentals even without gas. Most of our SFR here have attached garages and many have bedrooms above them. I'll put one in the hallway outside of the bedrooms, and if its a two story with a bedroom downstairs I put one there. My problem is keeping CO and smoke detectors hooked up. People are always disconnecting and placing them in a drawer. Maybe I should put into the lease a reconnect fee for detectors.

There are positives and negatives to having a license.

Positives:

• You save one side of the commission, but you can't be in dual-agency with yourself, so you still pay the other side.
• Access to the MLS.

Negatives:

• You are held to a higher standard. If you ever find yourself in court the judge may feel you used your knowledge to take advantage of someone, or if you didn't know - you should know as an agent.
• National association fees, state association fees, city association fees, MLS fees, lockbox/key fees, broker fees, and probably some I'm forgetting.
• You can only pay commission's or finder fee's to a licensed broker. This eliminates working with unlicensed bird dogs. 
• Many people do not like real estate agents (I know, it's hard to believe :) and they refuse to work with agents, but you must disclose that you are an agent.
• Required CE training. 
• You are under the thumb of the department of real estate. If you don't follow their rules they will strike down upon thee with great vengeance and furious anger.

I'm in Arizona your state may differ.

I have been involved with land transactions around there. Being between Tuscon and Phoenix it's a matter of time, but as Randy K. pointed out we have all been saying that for years. It seems like everytime things really start to take off a recession wipes everything out. With this in mind be careful buying in a strong market there, because purchasing on the wrong side of a crash and watching developments shelved is painful. Don't ask me how I know.

Are you using an alarm system? There are ones now that are cheap, wireless, portable, and work over a cellular network to notify you/police. Personally, being a single guy, I would just move into it until it was leased, but I know that's not an option for most. Good luck with the human debris. 

Unlike traditional mortgage lenders, hard money lenders are like commercial lenders, they lend based on the property's value and the deals numbers, unlike a mortgage lender who looks at property value but is primarily lending to your income, credit, and history. Some hard money lenders do consider income/credit, but none has ever asked for mine.

Think of hard money like a pawnshop. You need short-term money now. The pawnshop doesn't care about who you are, just what the item is worth, and can they get their money out of it if you default.

So it is difficult for a hard money lender to give a blanket pre-approval letter without property, although after you have completed a few loans on time and earned their trust, I could see a hard money lender providing this. Remember that they are all different and range from large companies with thousands of loans to the guy on craigslist.

Before I purchase a property, I explain my general business model to the lender, make sure that it is something that they are interested in and they have the funds needed. I also keep a couple of lenders in the on-deck circle just in case the primary craps out. Once you find a deal a hard money lender should be able to react quickly getting you a pre-approval letter and funding. I have money within 24 hours. Good luck.

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