All Forum Posts by: Brian Boyd

@Anthony Phillips I’ve invested heavily in Knoxville and Chattanooga. Jackson, TN is a good location too.

Sounds frustrating. Does your state and contract allow you to sue for specific performance? If so, send the seller a certified letter that you are ready to close and/or move forward and ask if he needs more time and if so, to let you know. However, you are being placed in a difficult position and the contract is valid so you just want to close the deal.

@Chris Pitt maybe, but in the interim, I would be paying these costs and expenses with no guarantee for return. I prefer real estate because it’s not as speculative as the stock market. If I don’t pay my personal mortgage, my bank will not cut me a break. Ultimately, this is a contract: I provide you housing in return for your rent paid on time. It’s a business transaction and once you get into the interpersonal idiosyncrasies of the tenants, you open Pandora’s Box.

@Doug Wolff a registered agent or designated agent is simply for service of process. There are companies that will do this for you for an annual fee. If you search for Registered Agent services you will find more than you need.

Good Luck!

@Demarcus Crump the cabin was $400k and the next two properties were around $255k each. We out down 25% on each and then put about 10k into each. We never refinanced and always plowed any profit back into the business. To this day we have never taken a dime out of the company.

I am not sure that you could collect from the tenant as they sound judgment proof. You could sue and get the judgment and if the tenant has a job, you could garnish the wages. 

You should get a locksmith out there. Post a notice that you will be by in 24 hours to open the property and change the locks at her expense. Moreover, give her notice of eviction for cause. Check your local laws to see how to go about this.

Property managers are perfect. Their purpose is to relieve the day to day management from you but it is still your property to oversee and you need to communicate with your PM. Weekly or monthly calls to get an update, discuss maintenance costs or issues, and forecast what is going to be an issue in the future. We are considering self managing once we get enough properties that make it economically feasible and have already bought the software to do so. In fact, we are going to self manage our next deal so we can start retaining more funds.

I think this post assumes that the banks are going to give the owners a break on the mortgages? If not, then this post assumes small businesses are charities that give away housing for free. The majority, if not all, of the members on this site are here to make money and are doing so through sacrifices that include saving their own money to invest in these properties. For profit entities vs. Non or Not for Profit companies are very different in their missions. 

Good question. Your CPA will need to prepare a K-10 for the partnership and it will generate a K-1 for each of you to identify what will go on your individual 1040. You need to hire a CPA or get TurboTax for LLCs to help you.