All Forum Posts by: Phil G.

I've found Vermont Mutual pretty good for dwelling policies for older multifamily properties. They sell through independent agents.

Be careful. It is illegal for an agent to pay a referral fee to an unlicensed person in many states.

Brett, you might check out the real estate jobs section on craigslist. There are always lots of ads from various brokerages and what they offer. I know I've seen free pre-licensing classes offered by some offices in their ads.

Your father-in-law is not a disqualified person, so it's not a prohibited transaction. If it were your wife's 401(k) it would be a prohibited transaction.

Sweat equity is a no-no.

It's also tougher lead paint laws, additional protected classes under fair housing laws, eviction procedure, etc., as compared to NH for example. Some landlords collect last month's rent instead of a security deposit, assuming they weren't collecting both.

They've been very successful in my flips. If you style the kitchen well, you can get a nice European contemporary look for short cash. And they stand out to younger buyers especially when all the other houses they've been seeing look like grandma's house by comparison.

They've stood up well in my rental units and they have long warranty.

Most states require you become a salesperson, working for a broker, before you can become a broker in your own right. There are a few states where you can become a broker directly, with some combination of extra education hours of equivalent real estate experience, but they are the exception.

Many agents with broker licenses choose to work for a brokerage rather than themselves. It can be cheaper, overall, especially if you're a part-timer. There is also less liability attached to being a salesperson than a broker.

Part-time agents are very common in the business and many brokers have no problem welcoming part-timers into their office. Be sure to find an agency that allows you to represent yourself in a transaction. Not all do, due to liability and the E&O policies they carry.

You can often find agencies running ads under Real Estate Jobs on craigslist.

Run your deal by First Western Federal Savings Bank firstwesternfederal.com) and NASB (nasb.com). Both have more reasonable rates. I have a 30 year adjustable, currently at 6.5%, on a 4 unit building with First Western.

A solo 401(k) would be exempt UDFI. If you have any self-employment income or prospect of it, you could have a 401(k) plan drawn up and rollover your IRA to it. You can't rollover funds from a Roth IRA into a 401(k). Lenders will make the same non-recourse loans to a 401(k) as they will to an IRA.

There are lots of posts on BP on this topic.

The need to be a Realtor and belong to a board in order to become a member of the MLS or join a brokerage is a local issue. Some MLS systems, affiliated with a local board, require you be a member of their board. Other systems require at least membership in a board in the state and others that you be a member of a board anywhere. Other MLS systems are open and don't require board membership. I live on the Massachusetts/New Hampshire border and am licensed in both. Both the main Massachusetts and NH MLS systems are open and you do not need to be a Realtor to join. The broker with whom I hang my both licenses requires that NH licensed agents be a member of a board because the MLS would raise every agent membership fee if there is one agent who isn't a Realtor. Massachusetts MLS pricing is based on whether the broker is a Realtor.

Not sure about Virginia law, but in most states, you start out with a salespersons license and you must be affiliated with a licensed broker. After a period of being an active salesperson, you can become a broker and can then open your own office.

I hate to discourage anyone or be a buzzkill, but you mentioned that he wasn't able to maintain his properties any longer. Is there significant deferred maintenance that you're going to need to deal with? And if so, where is that cash going to come from? The current owner sounds a little desperate to be rid of the property.

Be sure you'll have the resources to be successful before you leap. This won't be your last chance to acquire a property.