Flip Advisor 101 Real-Time Stats (as of 2/15/18)
13 flips currently in progress. 148 flips completed. 19 rentals properties.
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I started Blue Steel Real Estate last week. It has been an exciting and slightly stressful process. We opened earlier than we thought we would open, but everything has worked out extremely well, and I am glad things happened the way that they did. On this episode of the Flip Advisor 101 Podcast, I talk about the move, the process, and how everything has gone so far House Flipping Software.
You can listen to the podcast by clicking the green button below
Why did we have to move early?
I was planning to move on June 1st, but my broker asked me to leave early. I did not know this, but it appears to be common practice for brokers to fire agents when they find out they are leaving the company. I have talked to a few other brokers who started a new office, and they had the same thing happen to them. I was given 10 days to leave the office, which ended up being April 6th. We managed to get everything set up with the Real Estate Commission in Colorado in those ten days, and we opened on April 6th.
You can see the full article I wrote on opening an office here.
What is involved in opening an office?
Luckily, I had extra space in the commercial building I just purchased for my temporary office. I am remodeling my permanent space, but it will not be ready for at least another month. It was quite the process getting everything moved over, getting a printer, and everything else needed for an office. I actually worked for a few days without internet! We had a hotspot tethered off a phone. You can see both units in the video below:
Why am I starting my own real estate brokerage?
I did an entire podcast on why I started my own brokerage. Because I bought my own building it makes a lot of sense to have my own office. The numbers on the building make sense even with two spaces vacant. My partner and I wanted to rent the vacant units but knew they would need a little bit of work first, or we would have to provide a lot of tenant improvements. I was able to move in at a reduced lease rate because I needed minimal tenant improvement completed. I could move in right away (one space had been vacant for 6 years), and I can keep an eye on the building. I can save a lot of money over other brokerages because I am paying myself rent. I will actually be paying less money for 4,500-square-feet of office space versus what I was paying my broker for three offices.
It has been a little crazy with the move, but in the end, I am glad we had to leave early. It forced us to start our company sooner, and it has been a really fun experience. I cannot wait until the new office is ready and we can move into our permanent home!
[0:00:14.0] MF: Welcome to the Invest Four More Real Estate Podcast. My name is Mark Ferguson and I am your host. I’m an active real estate investor in today’s market, having done over 140 flips. I flip from 15 to 30 houses a year. I buy residential and commercial rental properties. I’m an agent with a team behind me who have sold thousands of houses over the years.
On this show, I talk about myself, my career, and advice, as well as interview other amazing agents, wholesalers, landlords, flippers and the companies that help those people succeed. Before we get started, if you’re interested in help from me, I’ve got discounts on my coaching products just for podcast listeners. Head over to Flip Advisor 101.com/discount. That’s Flip Advisor 101, investF-O-U-R-M-O-R-E.com/discount and you’ll see coupon codes for my coaching products. I have a video training series on flipping, on getting great deals, training for agents, training for rental properties as well, and many of those come with personal coaching from me.
I hope you enjoy it. I hope you enjoy the show, and let’s get started.
[0:01:34.1] MF: Hey, it’s Mark and we’re back with another podcast. I have been taking a little bit time off, because we just started a new real estate office. That’s what I’m going to talk about today. You may have noticed we didn’t do a podcast last week and the reason was I have been swamped. It’s been a little crazy here lately. Just decided to skip that week, but we’ll keep doing the podcast going forward with house flip trends.
Yes, we did start a brand new real estate office. We moved in last Friday. We got approved by the real estate commission last Friday, and we are officially open for business as Blue Steel Real Estate. I’m going to talk about that move, everything that’s been going on with our team, the office, and give you some insight into that entire process.
I did a podcast a couple months ago about why I wanted to start a real estate broker, so you can for sure check that out to see some of the reasoning behind it. Now that has finally come to fruition a little faster than we thought it would. I first made a bunch of goals at the beginning of this year. It’s been a crazy year. It seems like you always want things to happen fast and go quickly and sometimes they go really fast and really quickly.
Things I thought were moving along okay, and then all of a sudden he asked us to leave early. He asked us to leave April 6th. I got about 10 days warning and we managed to move out, get everything going and approved with the state, and we opened up for business on April 6th.
Now we were not able to move into our main permanent building that is still being renovated, but we did move into the other vacant unit that was in the building. I bought this building with a partner who’s a super cool guy. We get along really well. We’re both easygoing, that’s one reason why I partnered with him.
This unit is vacant with no tenants planning to move in in the immediate future, so makes sense for us to be in here a little bit. We can clean the place up a little, fix it up just a little bit while we’re here, so that’s an advantage as well. Then we have a place to stay, a place to get some work done, while the other place is being renovated.
That’s been a little bit frustrating. Had to cancel some meetings, some calls, different things, because of that. But you work through those growing pains and figure things out. Besides that, we’ve got ourselves set up with some desks, our laptops, we bought a printer, we’ve got a Keurig so we can make coffee, we’ve got snacks, we have two bathrooms in here, so we are set and ready to go for the next month or two until the other unit is ready.
Along with having to physically move, do that types of thing with the brokerage, I thought I would talk about just what it takes to start a brokerage, what it’s been like for us so far, and what our plans are for the future.
All right, so to start, well basically, every real estate agent has to hang their license with a broker if they’re not a broker. Now in Colorado technically, everyone who sells real estate is a broker, but they call beginners associate brokers, so they don’t have an actual broker’s license and as managing brokers or independent brokers.
Basically, an associate broker is a real estate agent. They’re not a broker, but Colorado calls them that for some reason. To make it easier to say real estate agent versus broker, a broker is someone that has a broker’s license, has their own office is basically what most people think of as a real estate broker.
Now I’ve had my independent brokers license for about seven, eight years and I actually got it because my sister was a property manager. She was a licensed broker and she forgot to do some training, or forgot to renew her license one year, and I stepped in, got my independent broker’s license and ran her company for a couple months while she got her license put back in place, got that all figured out.