All Forum Posts by: Brian Irk

@Maurice Ilao

Most people recommend to have an LLC, but I believe it really only helps if that property is titled under that LLC. However, we own two rentals here in Indy that we have titled under our personal names with an umbrella liability policy for extra protection. We have a great lawyer here in town and would be happy to provide his name and contact. If you would like it, please PM me!

Here is a link on how to register an LLC in Indiana. It is really pretty easy! Good luck!

http://www.in.gov/sos/business/2428.htm

@Gregory Flores, Jr. I talked with a banker today with whom I'm refinancing one of my homes. We currently have the mortgage in our personal names with an umbrella liability policy ($165/yr). When I asked him to refi the property under our LLC, he said they can't even do that. But he's a big bank guy so he has a bunch of regulations.

We just bought our third REI and will title that under our LLC. But for now, we are likely just going to keep the titles the way they are.

If you find out that your bank is willing to work with you please let me know! 

@Oren K. and @Nathan Gesner

Thanks so much.  I suggested that he look at his contract.  He will do so as soon as he gets home.  My wife and I have decided to manage the property for him.  We have a RE attorney that I can put him in touch with if he has push back.  

I believe his current contract is 1 year and is on auto-renewal.  He has explored the option of breaking contract in the past but didn't feel there was quite enough "ammunition" to be considered a breach of contract.  At this point, he does.  Thanks for your advice!

Brian

Hello BP Friends,

I could use some advice.  My father (who lives in NC) has a rental in my home town (Indy).  Over the last two years, he has been having some problems with the Property Management company.  Prior to this week, the issue have been small i.e. they have nickel and dimed him on several things, they were not following up with potential tenants quickly enough and didn't seem to vet potential tenants to his desire.

This week brought his concern to a whole new level.  When he received a call from the PM company telling him that there was a leak/flood coming from the bathroom with raw sewage.  They told him the tenant was threatening a lawsuit if they couldn't break contract and get their deposit back.

When my father went to the property, the tenants (who happen to be amazing) said that the PM are doing my dad a disservice.  The tenants only wanted out of the house temporarily because of the raw sewage in the house.  They never threatened a lawsuit and told my dad that IF they needed to move out because of the flood, they would like their deposit back.  But most importantly, they told him that that they reported the flood immediately and at the time it was not severe, but they noted with the PM that it was worsening.  It wasn't until they called back 12 hours later that the water had begun to run into the walls/basement.  It wasn't  until then that the PM called a plummer.

So here is my question.  Does my dad have a case to get out of his PM contract?  This company has not seemed willing to allow him to break his contract in the past.  But this seems like complete negligence and also a misrepresentation of facts.  Any help or advice is greatly appreciated!

Thank you so much for your help!

Brian

Hello Michael, My wife works with Keller Williams and brokers all our investments. She has worked with several other investors in the past. Mostly on buy and holds and flips. She might be interested but what type of investments are you looking for? Feel free to PM me. Thanks! Brian Irk

@Robert Herrera Thanks so much. So should I just have a conversation with the bank that services the loans?

Thanks again for the thoughts. So is the only negative that I’ll have to refinance into commercial loan? I do have an LLC with the bank account attached to it. I don’t commingle those funds at all and have normal insurance on the rentals. So would an umbrella policy be enough or would most people suggest titling the homes in the LLC? Thanks!

Gentlemen, Thank you for the thoughtful replies. Two quick follow-up questions. Does having an LLC give me any protection if the properties aren’t titled under that LLc? If they aren’t titled under the LLC, are we personally liable? So are most people that get loans on SFR taking out commercial loans or are they just getting an umbrella insurance policy and taking on the liability personally? Thanks again.

Hi BP friends, This is my first post. So I’m looking for some advice. My wife and I are currently small investors. We do currently have an LLC setup but after going to refi some cash out of one of the homes, I realized that the homes are not in the name of the LLC. I assume I should put them in the LLC, right? How do I go about doing that? Is this just a title transfer issue? Follow-up: For future purchases, how do I buy them as part of the LLC and not personally? Thanks in advance for all your help! Brian Irk