All Forum Posts by: Bob Floss II

@Leroy Wallace Jr It's a latent defect. The seller know about it and took attempts to hide it, knowing you would not find it until after you bought the house. In my opinion they committed fraud.

@Harmony Edwards Find a reputable attorney in your area that specializes in real estate and give them a call, we are usually pretty friendly.

Any news on the Cohen family? I saw a rumor posted that they skipped the country and I find it interesting there has been no information about them meeting with the SEC for settlement or a hearing. I'm trying to follow the story and there have been so few updates.

@Shannon Phoenix Anyone interested in turn key properties in Chicago, please reach out. I have a client looking to sell off some of his properties that have been rehabbed and rented. He can even stay on as property manager.

@Alisha Martin If you still need help, I'm available today.

@Mukesh Yadav The comments above are correct, I can review the document and make you aware of any issues I find with the legality of the offering. I cannot tell you, in my legal opinion, if its a good investment. 

Most investors want to know if the group has satisfied the SEC regulations, but I've been spending extra time taking a deep dive on the individuals and track record. I've been shocked to find how many groups offer "success" stories, but when you do some independent research, red flags pop up. 

I'm not trying to steer any investors away from syndication, but it's any area ripe with fraud.

@Lee Haenschen Filing the LLC doesn't take much work, although I have seen people mess it up. The real work is putting together the operating agreement. It can take several days and a dozen drafts going back and forth with the clients before I have the final version. I don't mind that people do it themselves, I get it, we all want to save money. I just worry that when a partnership runs into trouble, the operating agreement pulled off google will be of no help.

@Vladimir K. Rent control goes a long way towards curbing growth from the perspective of the investor. In my practice, most investors are looking to buy a building to make improvements, boost rents, and cut expenses. If you eliminate the ability to boost rents beyond the small increase allowed by rent control, you eliminate one of the biggest factors for an investor looking to create value. Why would an investor spend money to make capital improvements to a building when they won't receive a return on value? 

Keep in mind opening the door to rent control allows other issues to follow. Passing a rent control law requires passing protections as part of the law so landlords cannot unfairly remove tenants and replace them with a higher paying tenant. Imagine stacking new tenant protections to prevent removal on top of the Chicago RLTO.

The concern is investors already have to overcome the RLTO, a uniquely pro-tenant law that doesn't exist in most major markets. Stacking rent control on top of it could drive away investors. We don't need it.

@James Winters You should not take a dime from anyone until you figure out how to structure your deals. It sounds like you need to establish a partnership or operating agreement and possible the private mortgage and note.

@Lisa Maturo I checked the link and its working. If you are still having trouble, you can type Floss Law into Youtube and it should be one of the first few videos.