All Forum Posts by: Bob Floss II

@Jordan Rosenberg It's not hard to find leasing data online and factor that into your search. The hard part can be deciding on a building with unknown zoning issues. Good luck on your search. 

@Brandon Turner I've had some house hack clients work around this by renting out the first and second floor units and living in basement "unit" themselves. They are typically clients that only plan on occupying the property for a year.

Chicago gets a bad rap, but they will give you the opportunity to pull permits and make the corrections to legalize it. When you get into some suburbs, they are savage. I've had an inspector come in for a notoriously bad village and force the owner to rip out the beautiful wet bar in his man cave because he viewed it as a possible kitchen for an illegal basement rental. Anytime a grandfathered zoning comes up, I also have to remind clients that should the property have a massive fire or take heavy damage, the village may not allow it to return to a nonconforming use. My client found that out after a fire in his 2-flat and the village wanted permits to turn it into a single family home. He won, but the village put up a hell of a fight.

@Sam Crochet What you are describing sounds more like a "subject to" than seller financing. Did you execute the deed and are holding it, or you are waiting to execute the deed? You'll need to consult with an attorney in you area to see what the local rules say about an unrecorded deed. If the deed is in your name, the insurance is in your name, and the mortgage is in your name, I think it's reasonable for the person injured to assume you are the owner. You'll have the burden of proving the person you contracted with is really the owner of the property during the time of injury. As mentioned above, doing so could trigger the insurance policy to deny coverage of the accident. Talk to an attorney before making any response.

@Alancha Thompson You can take the time and money to get educated first and then start investing, or start investing first and get educated by losing money. Investing looks easy on the surface but there are a lot of details you need to learn to keep from losing money. 

@Mark Ainley I'm a fan of #1. Good luck!

@David Roe The hard money lenders that rely on selling their paper on the secondary market are struggling. The hard money lenders utilize their own private funds are still operating, although their appraisals are getting more conservative. 

@Marco Morkous If you do an online auction, you have 30 days to close. Find a good hard money lender. They will order an appraisal but most appraisers are doing drive by appraisals because of the pandemic. Get approved for loan. Close. Celebration ensues.

@Benedict A Hubbert I would not recommend buying an interest in the property because you don't know if the person selling has the authority to do so. You need to get the attorney involved to figure out the probate. 

@Andy Wilson It's very easy to get the LLC created, but it's very important to follow through with all the steps to give yourself protection. Filing articles with the Secretary of State is step 1, then you need to create your operating agreement, and then go on the irs website and get an EIN so you can open a bank account. Please don't just rip an operating agreement off the internet and sign in.

@Tyler Olson Aside from getting tax advice, take into consideration an S Corp only has one member, versus an LLC that can have multiple members. If you want to take on partners down the line, you'll want an LLC.