All Forum Posts by: Bill B.

You still require renters insurance. You get THE name or names or the EXACT people who will be living in the property. (So you don't find out later they turned it in to an illegal STR renting to strangers.Which would probably invalidate their insurance and yours.) And you get a personal guarantee from every owner/executive of the company. Otherwise they can walk away at any time leaving you stuck with a tenant with a valid lease you can't evict but isn't going to pay. You assume they chose your property because you're not using a property manager right? Someone who would either not allow it or hold them strictly accountable.

Which reminds me. Make sure the “tenant” also signs the lease that has all the rules and requirements. You don’t want a tenant that didn’t sign a “No Horses or smoking inside the property.” Portion of the lease. They only have to live by the rules on the lease they signed. 

I assume you have GREAT insurance or nothing to lose in a lawsuit. You’re going to let people you haven’t vetted party in your property. I sure hope none of them are underage drinkers who later crash and kill someone. 

There is ZERO chance I would do this. Why do you think they're using your property? They have nothing, or they don't want to lose anything. You'll be the target of any lawsuit. If the city outlaws STR the next day, how many more months of rent do you think you'll get? I'll give you a hint, that "company" you rent to will have $5 in its bank account.

If you want to run an STR get the right insurance and get maximum leverage on your property and run it. If you want to do MTR or LTR do it. Don't farm it out to someone with nothing to lose who can quit anytime they want.

Ps. Remember your current insurance won't cover you, that's for a regular rental, not an STR.

Is there a court dedicated to evictions? Could you hang out there looking for landlords representing themselves? Offer to take over and solve the situation if they hired you?

Offer commissions to current clients to bring more of their properties or their contact’s homes?

Add a lien to your rental listing asking landlords if they’re happy with their PM?

You misheard them or they’re lying…

Definition of “refinance” to replace an existing loan with a new one. 

Get a Heloc, or a personal loan if you have a solid existing rate. 

The rates you see online are usually for a primary home loan. If this is your primary home yes it is high, especially after paying 5% in closing costs. Although I really can’t believe they’d even do a 30 year loan for $45k, even at 8%. 

I’ve had pretty good luck with them for years. But I don’t use them for the credit/background check, just advertising. First red flag would have been a fake bank statement with $200k in it. $20k would have been excessive, $200k is stupid. 

Furnished finder is the go to site for midterm furnished properties. Airbnb and Vrbo are trying to move in to their space. But most tenants will search furnished finder and they treat their hosts much better for smaller fees. You can certainly try both but I would mark up the vrbo/airbnb listing to compensate for the higher fees and the new risks of refunded payments. Good luck. 

Ps. Maybe reach out to local hospitals with your info saying you want to help new employees transition more easily. 

I love the Vegas market. But I HATE the Vega SMF market. 

I look for stucco sided, slanted and tile roofed, properties preferably less than 15 years old, definitely less than 25 years old, in decent neighborhoods. 

ALMOST every Vegas SMF is 4-50 years old, in a sketchy east side neighborhood, often with flat roofs, sometimes shingled, and sometimes without stucco siding. 

The only ones I’d consider are north up by Cheyenne and south/west by Chinatown. But even then. Only if I was childless and single or had a partner excited about house hacking one of the units. 

You just attract itinerant tenant that rarely stays long, will move to save money or get more space, and often doesn't have a credit score they are worried about saving if they move out of a trashed unit. If you stay in Vegas market look for a SFH you can afford at least 1800sf, 3/2/2car and IMHO you will do better with reduced vacancies, zero tenant in tenant conflict, and over all a better experience.

You can check out @Eric Fernwood posts/blogs about the areas in the market his clients invest in and the type of properties. They are pretty close to my choices. 

Good luck. 

Do people without PMs just get targeted for this? It seems like maybe they figure the individual won’t check doesn’t know the laws, or something?

Maybe it’s a Vegas thing or a PM thing, But a dozen properties over 20+ years and we’ve never found an undeclared animal. Either they’re really good at hiding them or the application leaves no room for forgetting you have an animal? (You need photos, size, last vet check etc…)

I don't know your 401k to LLC question, maybe/probably?

But why not skip the LLC? You're not really getting any extra protection. Try to imagine a lawsuit that exceeds your insurance coverage. (The only time the LLC would matter.) Where you wouldn't also be sued personally. You are 10X more likely to be sued for something you do personally. (Dog bite, car accident, pool, injured worker, etc etc.) in which case you'd lose the property anyway as it's in an LLC you own. It's your asset.

The call has gone out dozens of times to all the BP members for one example where an LLC saved them that an umbrella policy wouldn't have. There have been zero examples. And that's all assuming your the first person in history to perfectly separate their personal and corporate life to prevent piercing of the corporate veil when a lawsuit involving more losses than insurance coverages.

Raise your standard limits and if you’re worth more than $500k-$1m just raise the limits on the umbrella policy you obviously already have. If not, you’re “judgement proof” by lack of assets. Good luck and done let this prevent you from moving forward. 

Assuming your realtor was smart enough to insist on an estoppel of rents obviously you can go after the seller for reimbursement. 

On the other hand. Whoever talked you out of using a professional property manager has cost you more than 5, maybe more than 10 years worth of “free” management costs. 

Please get a professional manager in there, someone who has an eviction and section 8 expert either on staff or on speed dial. Then look up if your realtor was too new or inexperienced to ask for the rent estoppel or if you have one and can go after the seller. Good luck. I’m glad to hear you must have had massive reserves if you haven’t already lost the property.