All Forum Posts by: Bob Floss II

@Derrick Hoffman No, your gut instinct is correct. It's not worth it. 

@Maria Taylor Yes, you need to do an operating agreement. Without it, you haven't properly set up your LLC.

@James Cunningham Prepaid legal services will sometimes only cover legal fees for your primary residence and won't cover anything related to invests or investment property. Pay attention to the coverage. 

@Vince Berg True, but the equity build portfolio was due to poor management. These areas are still profitable, they just need good management. 

Rent and security deposit are always on the settlement statement, something doesn't seem right about your closing. In the future, I always request through attorney review that seller provide a certified rent roll at closing. They have to sign a document verifying the status of all rent collected at the time of closing. If anything changes, seller needs to pony up credits. 

I don't mind wholesalers at all. However, I do have complaints. Many times the ARV is over inflated using bad comps or the rehab estimate is horrifically low. Someone sent me a house that only needed $10,000 worth of work. Just needed a new roof, new kitchen, new bathrooms, and paint job.

Illinois attorney here. It's a bit of a shell game. They make it sound like maybe you could file an eviction, but create a dozen different ways the judge or tenant can have the case thrown out and the landlord just wasted money. Unless there is an immediate health and safety concern, landlords essentially can do nothing.

In my opinion, the government realizes the mess they made and don't know how to correct it, so they keep pushing it further down the road. It's the same thing thing they do with budget problems, but now the landlords are the ones being pushed. Politicians keep funding programs to pay rent to landlords, but most landlords I speak to haven't seen any of that money. I think they are starting to realize how much back rent is owed and they are panicking. I have several clients waiting to file evictions that are owed over $30,000 and they tell me they will not settle under any circumstances. In the end, the government is doing more damage by exposing tenants to huge judgments when the courts reopen. 

@Jeremy Fox Real estate closings are different in every state. Generally attorneys stick to one or two states. I'm in Chicago and do Illinois and some Wisconsin. I've been asked to do the occasional property in Indiana or Michigan but typically refer them to local counsel. Illinois has strict rules depending on where the property is located and it helps to have some familiar with those rules. 

@Ryan Alexander All good advice above. The only thing I'll add is to keep in mind how your structure will affect applying for additional loans down the road. If you plan to purchase additional properties, your LLC structure will dictate which members and how many need to be a part of submitting financials for the future loans.

@Jeff Lee During a bankruptcy, all assets are under the control of the court appointed Trustee. You would need court approval for the contract to purchase property, sell property, and any other agreements.