I believe the laws are different for different states on management of property. Check your state.
Is this the lender requirement?
I am told that management fees are totally negotiable avg. 6-10%. Try to discuss this with a local broker who has a property management branch and a local broker who does not have a property management branch. How long have you been managing these properties?
In this market I think you could offer this service for free in order to make a deal succeed. I see realtors giving free consult/support in order to help deals work.
Well, you could get around the broker requirement for property management by retaining some ownership. You are not required to be a broker to manage properties in which you have an interest.
Form a new LLC-- sell the property to this entity with the "buyer" owning 95% and you 5%
Give a 2 year management contract.
Plus an option to be bought out for $10 at the end of the management period.
I think you do your buyer a diservice to sell him a bunch of rental properties if he has little or no experience and are asking for trouble. I say that because that is how I got screwed the first time that I bought properties. Is it a private sale an MLS sale? how did you find the buyer and what have you done as far as disclosure to the buyer? Lots of lots of lots of liability with what you are doing
We have a turnkey product that can help your investor. We can put the properties that he has in a blanket mortgage if they are under 70%. We can provide property management also.
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God Bless[ Edited by commercialking on Date 04/06/2009 ]
I think you may be referring to a 3/1 arm.
Fixed for 3 yrs, then adjusts every yr thereafter.
John, are you a broker/agent?
You might be exposing yourself to a ton of liability
cjmazur,
I am neither. Hmmm.
JohnCl
I believe the laws are different for different states on management of property. Check your state.
Is this the lender requirement?
I am told that management fees are totally negotiable avg. 6-10%. Try to discuss this with a local broker who has a property management branch and a local broker who does not have a property management branch. How long have you been managing these properties?
In this market I think you could offer this service for free in order to make a deal succeed. I see realtors giving free consult/support in order to help deals work.
Well, you could get around the broker requirement for property management by retaining some ownership. You are not required to be a broker to manage properties in which you have an interest.
Form a new LLC-- sell the property to this entity with the "buyer" owning 95% and you 5%
Give a 2 year management contract.
Plus an option to be bought out for $10 at the end of the management period.
I think you do your buyer a diservice to sell him a bunch of rental properties if he has little or no experience and are asking for trouble. I say that because that is how I got screwed the first time that I bought properties. Is it a private sale an MLS sale? how did you find the buyer and what have you done as far as disclosure to the buyer? Lots of lots of lots of liability with what you are doing
We have a turnkey product that can help your investor. We can put the properties that he has in a blanket mortgage if they are under 70%. We can provide property management also.
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God Bless[ Edited by commercialking on Date 04/06/2009 ]
I am 20 minutes from Victorville if you need a foot soldier.
Thanks.
The seller had too much money in the place to make it work.