Helpful information on choosing a Broker Key is excited to provide you with a guide to some of the top real estate brokerages, mortgage companies, title companies and related real estate field practitioners in Nevada. Though Key is unable to specifically endorse or promote any one specific company I can tell you that I have personally witnessed thousands of students work with these time tested companies over the last 20 years. I encourage you to use this guide to assist you with everything from selecting the broker that you intend to practice under to the mortgage companies you can refer your clients to. It is extremely important to surround yourself with time tested companies who you can count on. It is our hope that you interview these different companies, explore what they have to offer and determine how their business models can advance your practice. Key Realty School staff remains at your disposal throughout your tenure. Sincerley,
Michael Federwitz Key Schools of Nevada, 702-313-7000 Up and Running | Page 2
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Helpful information on the Mortgage Industry There are plenty of good mortgage lenders in our market to work with. How does a real estate agent determine which ones they can best work with? Interview and ask questions. Naturally, those agents in your office should be able to offer recommendations and insights. In the end you need to do your own due diligence. Here are a few questions to consider: • • • • • • • •
How long have you been in the mortgage profession? How many transactions have you closed in the past year? Tell me about the most difficult transaction you had, and how you overcame the obstacles? What advice to you give to your buyers? How do you see us working together? What is your social media presence? How will you be accountable to me and my clients? What are your expectations of me?
Most lenders offer the same programs. The difference is in their ability to adhere to the contingencies found in the purchase agreement, and especially to close the transaction on time. Your professional reputation is on the line when you recommend and/or team up with a loan officer. Ask lots of questions. Give them clear objectives and expectations holding them accountable. In the end, teamwork makes dream work. If you are comfortable with their answers and feel the synergy give it a shot. Lastly, hold regularly scheduled meeting to discuss your on-going game plan.
Tom Payne, Home Funding Corporation, Tom@HF-Corp.com Up and Running | Page 8
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Key Realty School is ready to assist you throughout your real estate tenure. The school offers many Post and Continuing education options in a variety of delivery and scheduling formats.
We offer more than just real estate education, too! Offering courses in: • Home Inspection • Mortgage Lending • Property Management • Association Management • Business Brokerage and many more Up and Running | Page 13
Call or visit our website for more details.
Helpful information on Entity Protection Real estate owners, especially investors and practicing real estate professionals, should only conduct business in Nevada through a Nevada entity. In Nevada, “entity” is primarily a limited liability company (which can be a series LLC) or an S corporation (and rarely will it be a C corporation). Why? Because Nevada has broad protections for individuals who correctly form and operate entities. Both US income tax and liability advantages exist to operating through a Nevada entity. The tax benefits are beyond this article’s scope, which will focus on liability protection. First, the tried-and-true formula is there should be one asset per entity. This keeps liability exposure limited to that one asset, which means the owner’s personal assets and those held in other entities remain protected. Your clients benefit by building wealth through real estate while protecting it - if one property has a problem, such as a lawsuit, they are not all put at risk. Operating through an entity also protects real estate professionals because if you are sued, you do not lose the personal wealth or other investments built up over many years. How does it work? I am biased and believe you should only have your entity set up through a licensed Nevada lawyer with real estate drafting experience. I have litigated many cases with entity documents drafted by accountants, “paralegal services,” and online “one size fits all” services. At best, they are too generic and, at worst, a complete mess. First, you must properly form the entity and pay an initial startup fee to the Nevada Secretary of State. Then you must operate properly, keep proper paperwork and pay a yearly renewal fee. You must also hold a local business license. The two major considerations in setting up your entity are it must be adequately capitalized, and there can be no commingling. The first defense to an alter ego or “piercing the corporate veil” argument, i.e., where a plaintiff sues to “pierce” through the entity to the individual owner, is there was adequate startup capital. Like any venture, a real estate entity must be adequately capitalized. There is no set formula. However, a good rule of thumb is that if an entity has startup capital to cover its expenses for at least six months, any business litigator can argue that it was more than adequate. The entity must maintain adequate capital to pay bills and deal with contingencies. For example, in the real estate rental arena, if the property goes vacant for a couple of months, there must be money in the bank to cover it. From a real estate professional’s perspective, look at your expenses for a month, amortize your startup expenses and prepare a monthly budget or proforma -then contribute enough to cover six months. Next is the most important part NO COMMINGLING - not ever. Income and expenses for the business must be handled through the business. Expenses for an individual or a related entity must never be paid through the other business. If there’s no business purpose, you cannot pay for it with business money – the cases prohibit using the entity as the “owner’s personal piggy bank.” I have loads of experiences as a litigator of people who did this wrong, but suffice it to say co-mingling, business and personal income and expenses is the death knell of entity production, which means that all the hard work and expense that you went through to have your own fortress was for nothing. Nevada has the broadest protections for entities set up and operated properly through an experienced Nevada lawyer. Nevada will protect responsible business owners while exposing those who don’t follow the rules. Knowing the difference can separate you and bring value to your clients that other real estate professionals simply do not have. Good luck and good business.
John Benedict, Esq., John@Benedictlaw.com, 702-333-3770 Up and Running | Page 15
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Most recognizable real estate magazine in Las Vegas. For over 50 years, HOMES ILLUSTRATED has been connecting Real Estate Professionals with Buyers and Sellers. Homes Illustrated is a full service marketing solution for REALTORS®, brokers, property managers and new home builders. We are committed to providing affordable, creative and effective advertising media to the Real Estate community. Our magazines reach consumers where they live, work, shop and play through targeted distribution - on line and in print.
Circulation and Distribution Homes Illustrated is printed bi-weekly with a circulation of 12,000 every 2 weeks. Homes Illustrated circulates thousands of magazines to readers both in print and online. Our publication is targeted to reach people who are looking to buy, sell and rent in Southern Nevada. In addition to our distribution in the Las Vegas Valley, Homes Illustrated is also distributed in SOUTHERN CALIFORNIA at over 50 locations in Los Angeles, Orange County, Inland Empire and San Diego!
www.hilv.co 702-367-3439 Up and Running | Page 22
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