Chemical X
Footballguy
if one LLC owns 10 properties and there is a slip and fall or some type of lawsuit, all properties are in play, not just the one involved.
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*** Official Real Estate Forum *** (1 Viewer)
- Thread starter jeff_eaglz
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BassNBrew
Footballguy
Have a 20 million dollar umbrella and no properties are in play. 2mm in coverage cost me $275. I gets cheaper if you go up from there. My state charges 250 a year for each llc tax return filed. You also have upfront expenses.
Also don't think all properties aren't in play. An acquaintance have an apt fire with injuries. The lawyer representing the injured name more than that llc. It's up to to owners attorney to show that the cause wasn't gross negligence which can void the llc shield.
My agent told me that if I had had each property in its own llc that he couldn't write one umbrella
also not that it would happen but if you create this llc after getting a personal loan for the subject property the bank could accelerate the loan
If your dealing with large multi family I can see the benefit. Not so much with single family.
ghostguy123
Footballguy
I have a conventional mortgage for the 2nd one. I have a 15 year mortgage that I am hoping to pay off much sooner, ideally 5 years, probably closer to 10. My primary job/income along with my other rental income from the property I own free and clear should allow me to do this. As I said, it's only going to be around a 54-55k loan. Nothing crazy. I am also maxing out my 403b. I COULD always decrease that to the point where I get the full company match and then pay off the properties sooner. I was not leaning that direction, but it is a possibility.
In the meantime, if I see something else that pops up that really want to get, i can take 100% line of credit from my 1st rental property (likely between 55-60k) and buy it. There is actually another condo (that I did mention on here before) that might only sell for around 30k and then would need close to 15k before I could show it.
However, that might approach the point where I would feel sort of uncomfortable with all this property and responsibilities and what not. I know I would not feel comfortable with a mortgage out on my own home and then own three rentals, two of which would have loans/LOC on.
It's strange, even KNOWING it's a great long term financial decision doesn't make it an easy decision.
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Zegras11
Footballguy
Question for you.... Why is it so important to you to not have a mortgage on properties? I'm assuming you're around 30 years old. Why not have 50% equity in as many properties as possible?
Sand
Footballguy
So you pretty much look at cash flow as the operating metric? Or cap rate?
I've ended up with a property and was curious how I should view it from an investment point of view. Even after the 22% the rental service we use charges it is (right now) pretty cash flow positive.
Zegras11
Footballguy
I keep it simple. How much did I make that year and what was the cost (down payment) to acquire the property.
ghostguy123
Footballguy
I suppose I want a safety net and high positive cash flow before I take the plunge into a bunch of properties.
ghostguy123
Footballguy
I also am not a Mr Fix it type. Between my full time job and family, my free time for coordinating stuff is fairly tight at the moment. I have actually been advertising for an on-call handyman. If that goes well it could sway me towards going after another property that needs a lot of work.
Sand
Footballguy
Thanks. At this point I'm hoping to cashflow out the 25k we had to put into it (the inside was a smoke filled mess). So this year net zero is a good number.
Random
Footballguy
For me it came down to closing costs. Cash closings cost next to nothing. And at the price I pay for my properties closing costs would be approaching 20-25% if I was taking out a mortgage on each one. If I ever jump into a large mulit I suppose I will put 20% down and take out a mortgage.
pantherclub
Footballguy
Your closing cost are 20% of your mortgage? Am I reading that right?
Random
Footballguy
The properties we buy are generally in the 15-30k range. Mortgages typically have a lot of fixed costs associated with them (Origination charges, title insurance,
inspection fees, and other crap fees) that total 2-3K.
Side note, we just scored this gem for 13K.
https://www.zillow.com/homedetails/501-S-Main-Ave-Sidney-OH-45365/2132014607_zpid/
Zegras11
Footballguy
GoBirds
Footballguy
Curious what sectors of the real estate market you guys see opportunities and value or if everything is just overpriced at this time? We do some new home construction and are working through an old development we are stuck with from the last bubble in the middle of nowhere but also have investments in office and self storage.
Random
Footballguy
We bought most of our properties from banks during the crash. Most needed various repairs/upgrades. We put an average of 5K per unit into them before we put them up for rent.
This last one in particular is just a LL that gave up. If he would have spent a few K he could have sold it for 3-4 times as much. The previous tenants stuff is still in there lol. They paid 80K in 05 for this property.
Random
Footballguy
GoBirds
Footballguy
We have one that was a home run and another that has been brutal........it has been on fire as a sector due to it doing well through the great recession so has become overpriced many think and in our market it's tough to compete against the big players with serious $$$$. REIT are paying good money for facilities right now but I;m a ways away from retirement so if I sold where would you put the money? It is a hard time to enter self storage at a good value, I do like how you are diversified over hundreds of similar units unlike a retail center where you rely on an anchor tenant.
Zegras11
Footballguy
ghostguy123
Footballguy
I suppose it's nice to have the inside track on properties that 99.999% of the public aren't aware of.
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ghostguy123
Footballguy
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Zegras11
Footballguy
Random
Footballguy
ghostguy123
Footballguy
I suppose it's nice to be in the business with people who can rehab the houses for you at a nice price........or be able to do it yourself.
I don't have that
I remember one of you saying you had a couple handymen you offer jobs to. I think I might have found one for myself. If he seems pretty competent with stuff at the two properties I have now, I might let him also do some things around my own house. If that also goes well, I just might see if he would be willing to do a "big" job if I buy more of a major fixer upper at a deep discount.
There is just no way I could see myself doing that right now with 100% fully trusting someone to do decent work and not be a lazy bum about it.
Zegras11
Footballguy
That might have been me. Back in 2002, I had 7 units (3/4), and we looked on Craigs List or Yellow Pages, or something like that. We found two that we liked and did a good job at decent prices. Just keep looking for one if you don't like yours. A good RE agent is going to know a few good ones also.I suppose it's nice to be in the business with people who can rehab the houses for you at a nice price........or be able to do it yourself.
I don't have that
I remember one of you saying you had a couple handymen you offer jobs to. I think I might have found one for myself. If he seems pretty competent with stuff at the two properties I have now, I might let him also do some things around my own house. If that also goes well, I just might see if he would be willing to do a "big" job if I buy more of a major fixer upper at a deep discount.
There is just no way I could see myself doing that right now with 100% fully trusting someone to do decent work and not be a lazy bum about it.
Random
Footballguy
Yep, not me. I partner with my brother, we do everything except for major HVAC. And we eventually found a guy to do that on the side.I suppose it's nice to be in the business with people who can rehab the houses for you at a nice price........or be able to do it yourself.
I don't have that
I remember one of you saying you had a couple handymen you offer jobs to. I think I might have found one for myself. If he seems pretty competent with stuff at the two properties I have now, I might let him also do some things around my own house. If that also goes well, I just might see if he would be willing to do a "big" job if I buy more of a major fixer upper at a deep discount.
There is just no way I could see myself doing that right now with 100% fully trusting someone to do decent work and not be a lazy bum about it.
Definitely a lot of trial and error. You're probably not going to jump right in and have a bunch of overqualified handy men knocking down your door for $10/hr.
ghostguy123
Footballguy
I paid my last handyman 35 and hour. Was well worth it while it lasted. Not likely to find another one like him.
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TLEF316
Footballguy
Likely a dumb question and I think I know the answer, but just thought I'd ask
I made an offer on a new house a couple of weeks ago. After some back and forth (the seller originally refused to budge even 1 dollar of his asking) we came to an agreement last Friday ( the first). We had a signed offer agreement later that day.
We've been in attorney review since early last week (the seller requested multiple changes including closing date, a higher deposit and me waiving a contingency. I agreed to all of them) and we were supposed to be done this morning.
Then late last night a higher offer came in and they had their attorney pull the contract. They're willing to let me match but it's pretty clear this seller is just a total ##### ( he's also an attorney) and I can imagine further issues down the road.(I'm sure he'll dig in his heals on anything regarding the home inspection) So I think im just going to let them take the other offer.
Do I have any legal right to get my attorneys fees back from the seller? I only took on that expense because we had a signed agreement and now they're backing out at the very last minute. It's not like it's some huge amount of money but it's not insignificant (it's basically a month of my current mortgage) and I've fulfilled my end of the agreement.
I made an offer on a new house a couple of weeks ago. After some back and forth (the seller originally refused to budge even 1 dollar of his asking) we came to an agreement last Friday ( the first). We had a signed offer agreement later that day.
We've been in attorney review since early last week (the seller requested multiple changes including closing date, a higher deposit and me waiving a contingency. I agreed to all of them) and we were supposed to be done this morning.
Then late last night a higher offer came in and they had their attorney pull the contract. They're willing to let me match but it's pretty clear this seller is just a total ##### ( he's also an attorney) and I can imagine further issues down the road.(I'm sure he'll dig in his heals on anything regarding the home inspection) So I think im just going to let them take the other offer.
Do I have any legal right to get my attorneys fees back from the seller? I only took on that expense because we had a signed agreement and now they're backing out at the very last minute. It's not like it's some huge amount of money but it's not insignificant (it's basically a month of my current mortgage) and I've fulfilled my end of the agreement.
TLEF316
Footballguy
He has no leverage. My place isn't even on the market yet and I can make the down payment and carry both mortgages (although it wouldn't be ideal) without selling.
This guy turned down my counter over 1.2% of the price before finally bending a tiny bit. If this is him trying to get his extra two thousand dollars (which is where we ended up when all was said and done) he can go pound sand.
He's a VP at a pretty large local community bank chain and doesn't need the money
The difference between our offers is 7k. But the other offer is above the asking that he was so set on.(he has already dropped the price once and his neighbor sold for like 15k more a month ago)
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ditka...mike ditka
Footballguy
Id tell him to pound sand and then be sure everyone I know in the community where his bank is knows the story (only the truth though, I wouldn't embellish any detail). That should cost him more than the 7k over the long term.
TLEF316
Footballguy
Zegras11
Footballguy
Bold #1 - Did both parties sign that agreement? If yes, you have a contract they can't back out of.
Bold #2 - That should be in your contract about what happens if the seller defaults. Ask your attorney.
TLEF316
Footballguy
Both parties signed the sale agreement but apparently that means nothing until you're through attorney review.
Either way, the attorney offered to waive his fee on this one (assuming it does indeed fall through). I'll certainly go back to him when i actually do buy a place (and sell mine) so I suppose it will all work out.
Just seems so lame that they can just back out for any reason. And it seems like a risky move for for someone who really doesn't need the extra $7,000.
Disappointed that I wont be getting the place, but hopefully something better will come along.Both my realtor and mortgage guy subtly encouraged me to just give in and match the offer but they obviously a vested interest in that happening since they already did most of the work on the sale. Just couldn't do it and give the ####### the satisfaction.
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TLEF316
Footballguy
I was told it doesn't count until attorney review is completed. I asked my attorney if we had any recourse and he said no.
Frustrating as hell as I did really like this place. I'll probably have to wait until next spring to find something now.
Sabertooth
Footballguy
Random
Footballguy
-OZ-
Footballguy
We finally decided to sell the land we bought 10 years ago, haven't built on it yet. We do love the land but it's further away than ideal (we had planned to move closer but are really happy in our home and community here). It's just over 2 hours away and we'll buy another lot about an hour away.
When selling vacant land and not in a rush, is it best to just contact a local agent? Sell yourself? Only problem would be showing, which really just involves walking the land, showing the boundary and discussing utilities. I'd hope the agent wouldn't expect as much commission as a house, and we'd be asking for a price more along the nice car range. 8 acres near a marina with great hillside views. Definitely more of a retreat type place but people do live down the road.
Would it make sense to use the same agent for a purchase an hour away? This is all just east and south of Nashville.
When selling vacant land and not in a rush, is it best to just contact a local agent? Sell yourself? Only problem would be showing, which really just involves walking the land, showing the boundary and discussing utilities. I'd hope the agent wouldn't expect as much commission as a house, and we'd be asking for a price more along the nice car range. 8 acres near a marina with great hillside views. Definitely more of a retreat type place but people do live down the road.
Would it make sense to use the same agent for a purchase an hour away? This is all just east and south of Nashville.
Mike Anderson
Footballguy
I would suggest area of the country. I am just 90 miles away and pull deals like this all the time.
Chadstroma
Footballguy
You can ask whatever you want to ask. 99.9% sure an attorney will say "no" because when it comes down to it- your option is to sue and are you really going to go through that to recover the cost of the attorney fees you are asking? A lawyer knows that most sane people will let it go and if you are not sane he can handle it.
Same thing for the breaking the contract. Sure, you can sue but the risk vs reward is just not there unless we are talking about properties where $7K is a rounding error.
TLEF316
Footballguy
My attorney ended up offering to waive his fee on the transaction (with the obvious understanding that I'll use him on the next one and pay for it regardless of what happens).
6 days later and the property in question is still on the market. The listing hasn't even been adjusted to say "under contract" or anything. I'm half expecting to get an email tomorrow saying that the other offer "fell through" (meaning it was a bluff because this hot shot attorney selling the place just can't to NOT get his asking price) and asking if my offer is still on the table. Wouldn't shock me just because we're still just under 2 months from when he wanted to close, so he has the time (and the attitude) to **** around with a move like that.
ditka...mike ditka
Footballguy
ditka...mike ditka
Footballguy
Im looking into take the plunge in getting into rental properties. My best friend for the last 30 years is a real estate agent who invested in a duplex a couple years ago and has done well. He hasnt added to his portfolio because in the last two years he has built a house, got married and they have a kid on the way. He mentioned the other day he was going to start selectively looking again and I told him I may be interested if he was looking to partner up with someone and diversify the number of properties even more. He liked the idea and is currently keeping his eyes peeled. Anyone else have a set up where they invest with someone else? Have any do’s and donts?
TLEF316
Footballguy
Guess the other buyer closed. Still looking for something else although I'm pretty sure I won't be doing anything until the spring now. Oh well
-OZ-
Footballguy
Looking at buying cheap rentals here. Aside from looking at Zillow and other sites for foreclosures and other cheap properties what's the best way to get started?
One on looking at this morning is in a decent neighborhood a few miles from my house, $30k for a 3 bed, 1 bath, 1200' single family. Another is 2/2, 1600', $40k, and "home is missing kitchen". Not really sure what that means but obviously it would require work. The one I like best is $39k, 1700', 3/2, mobile home on 1 acre, 6 miles away from my home, right off a road I bike on fairly often.
I don't think we're quite ready to buy but is that the type of place most of you would look for?
One on looking at this morning is in a decent neighborhood a few miles from my house, $30k for a 3 bed, 1 bath, 1200' single family. Another is 2/2, 1600', $40k, and "home is missing kitchen". Not really sure what that means but obviously it would require work. The one I like best is $39k, 1700', 3/2, mobile home on 1 acre, 6 miles away from my home, right off a road I bike on fairly often.
I don't think we're quite ready to buy but is that the type of place most of you would look for?
Random
Footballguy
Decent neighborhood 3/1 SFH for 30K doesn't sound bad. What would you need to do to it to rent it? How much would it rent for?
Adding a kitchen wouldn't be that bad, but 2 beds are harder to rent.
Never bought a mobile home so I cant intelligently comment on that but who rents a trailer? Ugh.
-OZ-
Footballguy
I'd need to check it out.
Honestly right now isn't the right time to get into this (new job and just adopted our daughter) but I'm looking a couple years out, trying to get smart.
Bull Dozier
Footballguy
I have what I hope is a quick and easy question. I'm selling a house (first house, moved and rented it for a few years, now selling it). I have a purchase agreement negotiated and we are on track to close 12/29. The buyer just sent over a consent to arbitration agreement. Is this standard? Preferred? I've tried to do some research, but all I kind find is that this seems to be pushed by home builders on to buyers and is not in the interest of the buyers in these cases. Who would benefit here, on a 100+ year old house? Any risk to agreeing to this, or is this more for my benefit so I should sign before they change their mind?
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