All Forum Posts by: Robert D.

....carpet is the 2nd largest expense is this business. never carpet. first thing I do is pull all the carpet and install ceramic or vinyl

judge:

"i understand the plaintiff claims that they developed breathing problems while living on my premises. I offered them a lease, they refuse to sign it. they told me to stay away from the house and not to bother them. since they refused to cooperate and refused to become my tenants I gave them 90 day notice to vacate. they refused to provide access to the property so that I can inspect it. attached  are the certified letters stating that I would like to inspect the property." 

my properties ? they are not mine ...that's the point you don't get. 

i am not hiding the assets. that's not the point .the point is that it will cost you a lot to take those assets away from me. in the meantime I can assign my assets to somebody else with one signature. that's why you combing tust with LLC to make thing complex and costly. in IL charging order against an LLC does not mean that i need to liquidate or sell the LLC ..charging order can only affect distributions. ..so good luck getting there and finding out ...ooops "how am I gonna pay for my frivolous lawsuit if there are no distributions" ? one more thing ...lawyers are not protected class so I never rent to lawyers ...or cops

 I used to but I stopped coming there. there are no good deals any more ...the goods one are getting bidded up by home owners to the market. I guess the myth among the homeowners nowadays is : screw the mortgage payment and repo ur crib on the sheriff sale. oh well ...

the lease does not exist. they supposedly were paying to somebody but cannot produce the lease...which does not mean anything ...this means I need to honor the oral lease. the owner is deceased. they are not squatters ..they can prove they live there ..personal belongings, mail utilities under their name. I cannot report them for trespassing ...chicago finest will show up on that beautiful block on 70th and Damen and laugh in my face ..so will the tenants ..and I will only aggravate them to the point that they might trash the place once they will be forced to move out 1 year later by the Sheriff...1 year that's how long the eviction takes. first 90 days notice, then the sheriff need to go out there (who knows when) and give them the notice of forcible entry being filed against them then the judgment..then sheriffs eviction ..I will be lucky of they gone in Sept 2017. cash for keys will not work ...what they gonna do with $2K if they know they can live rent free for a year ...average monthly rent is around $800 over there ...good thing is ...that SFR 3br/1ba brick raised ranch will increase in value...I could make them my tenants ..have them sign the lease ...and hope they miss the payment ..problem is that once I make them my tenants I am responsible for upkeep of the property..what if there is mold in the basement and they develop sudden breathing disorder ? so many options ...

It matters a lot how title to the property is held. First of all tenants will not be able to afford "good attorney". once the "good attorney" will see that the property manager owns other properties via combination of trust and LLC they will ask my tenant aka "somebody who lives paycheck to paycheck" for a at least $5K retainer. This is where the frivolous lawsuit will stop. But lets assume that some ambulance chaser is willing to go for the home run and takes the case on contingency. Lets assume that I as a property manager and the trust X that owns the property are named in the lawsuit. What happens next ? My other properties are held in separate land trusts that have nothing to do with the subject property and the tenant. The beneficial interest to those trusts is conveyed via assignment to an LLC that I co-own with somebody else so the LLC is not single member LLC but partnership that does not exist only in my drawer but has separate bank account and an operating agreement. even if they get the judgment against me that exceeds my insurance limits and they get charging order against the LLC that holds the beneficial interests for all the trusts (you are talking serious $$$ in attorney fees and years in court)…the order is only good for distributions …what if I never distribute anything and collect rent in cash or even better ..assign that beneficial interest to my other family member long before plaintiff will petition for discovery of assets or even subpoena my tax returns ? nobody will know who is the owner as nothing is recorded other than meaningless grantor grantee statement and assignment of beneficial interest...that's the point of Land trust.

I had a situation once that the tenant injured himself on my property due to him being drunk. I got a call from his lawyer asking about my insurance policy. I told them to beat it and hang up. As my leases are month to month the tenant soon discovered that he has 30 days lease termination notice. I never heard anything from the lawyer again..the place re-rented since then

 those folks are not the owners

Does somebody have experience with eviction of non owner occupant in cook county Chicago ? I purchased the property on the judicial sale and looks like somebody lives there. The law in IL states I need to give them 90 day notice. I also need to give them certain disclosures and offer them a lease if property is in Chicago. So called keep Chicago renting ordinance applies. So basically 90 day notice and then to file. ….but I have that investor friend of mine who is telling me that I can give them 5 day notice for non payment of rent and file a lawsuit against them if they don’t pay. Drag them to court and hope that they will agree in court to either pay or leave. This guy is pretty creative and I follow what he tries to do. Evict based on non payment of rent or agree and get order of possession “instanter” if they break the court ordered agreement. Has anybody tried that strategy in Chicago ? I guess the thinking is the following : yes we gave you 90 day notice but it does not mean you don’t have to pay your rent to the new owner. We don’t know whether you paid or nor to the old owner, we don’t have the signed lease with you. We told you that from 9/1 the rent is $900 per month and we will sue for that amount in court. We left you 2 copies of leave which you never signed ..but we don’t care and file anyways. Makes sense ?

I have several 11 rentals with state farm …and each rental has its own insurance policy. I have been recently quoted an insurance policy from American Family that would include all rentals on 1 insurance policy. The cost is ca. 30% less.

Here is what the state farm is telling me :

If someone slips and falls in one unit and exhausts your medical expenses, then yes they’d sue you and the liability would kick in. Then you would be dropped by American Family and no other insurer would touch you at that point for any of your properties. But because you have them separated at State Farm it limits your exposure.

Bottom line is that with American Family’s policy, if something happens to one unit it’s going to affect all of your units because they’re priced together

Here is what American insurance is telling me

If your account needs to be separated in the future we can do this. But really, if it is one property or multiple properties the risk is always following the address of the individual policy. So even if they are on one policy or all on one, the same situation of frequency could occur.

To tell you the truth I imagine we work exactly the same as State Farm, any claim or frequency of claims will certainly effect how the risk is rated or written.

In my experience, it’s not the dollar amount of the claim, but the number of claims that is more of a concern. I think this is an underwriting guideline across the board with how insurance companies write policies.

To help, answer your questions and help you make final decisions. One policy or 11 policies, the claim is still paid. Underwriting at renewal would always take place once a claim is closed. If we write you today with 11 properties on 1 policy, we can always rewrite with 11 separate policies in the future.

Assuming the policies are apples to apples and the same risks are covered – would you go with a 1 insurance policy for all rentals or keep them separate ? I have created 1 land trust per 2 properties and beneficiary interests of those trusts are assigned to an LLC that I co-own with family member. I am just trying to understand which option is better as far as insurance