All Forum Posts by: Brent Kiger

@Allen Jones Hi Allen, as a general rule, insurance looks at numerous factors, but does not look at purchase price. It will be more interested on replacement cost instead of what you paid for it. To get the replacement cost, your insurance agent should plug it into their modeling system which will incorporate square footage, catastrophe risk, etc. So to get an idea on pricing, you’d need to know what the property is worth vs what it can be purchased for. I understand this is very generic, but hopefully this helps. 

@Jack Moreno Hi Jack, I created a series LLC after I had a handful of properties, which was a bit of an administrative headache. Since creating a series LLC really isn't much more work, and shouldn't cost much more, I wish I had just started with a series LLC from the beginning, or at least early on in my investing career. It's always easier to do it ahead of time instead of having to backtrack. Good luck!

@Ray Harrell Thanks for your input Ray. That’s exactly my challenge is trying to determine if its worth the work and expense of getting a judgment against her or not. I have no issue moving past it as this is a business decision and not personal. I just don’t think there is any way to send it to collections without the judgement, and I don’t think the judgment will pay for itself, since she will likely never pay. 

I have a question regarding how landlords have gone about collecting past rent due from a tenant that has abandoned the unit. My tenant stopped paying rent and we began the eviction process. Before we had a court date, my tenant moved out and abandoned the place. As a result I do not have a judgment against her. I’m trying to see if there is a way to send her past rent due to collections, fully understanding the odds of collecting are slim to none. Wondering if there is a collections agency that routinely takes on situations like this, and if so, what that process looks like.

Curious what other landlords have done that have experience with this.

Thanks,

Brent

I would reach out to @boomer 

@Boomer Philbrick . I haven’t actually hired his firm yet, but he has done some really impressive preliminary work.  When I can get it in front of my cpa for strategy review this quarter I intend to hire boomer and his company.

@Andrew West Additionally, any book published by BP is first class. Brandon Turner, podcast host, has written some truly phenomenal ones. I would search for the ones he's written and start there. It will give you a great foundation to begin. I'm in Kansas City, but if you ever have any questions or if I can assist, feel free to reach out. Welcome to BP. 

@Andrew West My recommendation would be to start at the first biggerpockets podcast and listen to every single one. You have come across the website/podcast that has the best, unbiased investing information out there. The information on this website, podcast and BP books has been my primary source of knowledge to allow me to grow quickly. Many others have grown their portfolio significantly as a direct result of this website. I cannot recommend it highly enough.

@Bryan DeSellem I think that pre approval is pretty standard. If it were me and I was stretched thin I’d find a bank allowing 20% down. Which on a duplex you shouldn’t have any problem finding a local bank that will do 20%. That’s pretty standard so if your current bank is unwilling to negotiate on that, I’d go elsewhere. As for the 401k loan, they had been my preferred method since I discovered it. Keeping in mind cash flow will be less until it’s paid off, but you can’t beat it for overall net worth since the interest comes back to you and it sounds like this deal is likely to provide a higher yield that what a typical stock market year would provide. Best of luck!

@Chase Cline I use a series LLC in my state of Missouri and am very happy with it. For me in blends asset protection with operational administration. I put a few properties in each series and don’t create a series for each property. As we grew we learned that would be an administrative headache to have a series for each property. Instead we base it on how much equity we feel is enough in each series. Someone above mentioned they cost $10K to create. Unfortunately that is misInformation, as the formation of a series LLC is only slightly more cumbersome that a regular LLC, and you can get it done for under $1K. Let me know if you’d like to discuss my structure further. Of course I’m not an attorney or cpa so please make sure to follow up with competent professional advice.

@Jupshy Jasmin I use rentecdirect.com for my property management software. They have an online rent collection tool as part of their program. I like management software that incorporates rent collection because it records their rent payment automatically instead of going through a third party which would cause you to manually enter the rent payment into your accounting software.