All Forum Posts by: Brian Mathews

Lots of people lie to you and are dishonest.   Nothing you can do about it.   You can make a big deal out of it and nothing will happen other than you feel good that you made a big deal out of it.   Nothing will happen to the banker, your score won't go up that 6 points again, you'll buy a house or whatever you're looking at and move on in life and forget about it in a few weeks.   Life is too short to worry about the little stuff.   Remember the old saying.   Don't sweat the petty stuff and don't pet the sweaty stuff. 

Wow, that's a lot of money for an LLC. Mine in the state of Texas costs me a whopping $600 and part of that was paying my accountant to do it for me.

I think you're making something out of nothing.    If 6 points is going to affect your ability to buy something that much, then you aren't ready to buy anything.   It's too much work and hassle to argue with anybody about it or spend anymore time than you already have worrying about it.  

I would think that estate planning would be a very important part of this hurdle.   You run the possibility of losing the homes should your father become incapacitated and require substantial medical care and he doesn't have the means to take care of them.   It would be a very sad thing for all the hard work he has put in to all be in vain due to improper planning.   It might be worth your while to sit down with an attorney specializing estate planning to at least point you down the right path or give you your options.  

It appears as if your father isn't making wise decisions the older he gets.   If you bundle them all together and he continues on this path.   I will assume you will run the risk of losing the 2 that are paid for.  It would sure be a shame to lose those.   I'd probably go find a good estate planning attorney and get your father signed up for long term care insurance.   If he gets to the point he needs substantial medical care and needs to have the gov't pay for him in a nursing home.   You will have to sell those assets before Medicaid kicks in.   There is a lot at play here aside from just those rentals and his home.  

You're in California, one of the most litigious states there is.   Cover yourself.  

I'd find a way to get out from under his primary residence and let him move into one of his rentals.   The problem is that if he gets his primary repo'd they might come after him for the money because he has rentals.   I'm not sure your father is going to go for you owning 75% of his properties.   If he rented his primary house would it cash flow until the values come up again.   Have you gotten a realtor involved to find out exactly how much everything is worth?  

I'm not saying life is over.   I'm saying fix this mess then proceed.   Don't go from one mess into another.    My wife and I went broke several years ago due to an injury she suffered that we had to pay for.   We declared bankruptcy after trying to work with the people we owed the money too.   I hadn't heard of Dave Ramsey yet.   It was a very humbling and embarrassing experience, but we have come out of it.    For about 2 years afterwards, it will directly affect you, then it slowly becomes better and better each year.   It's been right at 10 years now and still shows up on my credit. 

What sort of debt relief program are you talking about?  I think you need to get your financial house in order.  You are already barely treading water paying back all this money.  Going to tap the equity again, coming on here and asking about debt relief and bankruptcy.  You are broke, why do you want to dig a deeper hole?  I don't know about you, but I'm out to make money, not own stuff that isn't making any money.  And it does not appear you are making money.  Don't buy real estate for the sake of buying real estate. 

The best time to buy is when the Roth isn't doing so great, buy low and sell high    You won't be using it for another 40 years so don't worry about it.  Diversify, never put all your eggs in one basket.