All Forum Posts by: Chris K.

@Steve A Spann

If there are any excess proceeds, they should go to the original owner. But there have been many lawsuits over this issue including a big one involving Philadelphia. But it never goes to the buyer. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Mark Case

Way too many variables to answer this question. It is true that the sheriff's sale can wipe out other liens and interests --- that's true regardless of who buys the property at the sale. 

But that's assuming first lien position and host of other factors. For example, removing IRS liens require very specific steps that even experienced foreclosure attorneys mess up from time to time. There are also procedural issues that can occur when a senior lienholder fails to properly notify a junior lienholder. While procedural rules allow for a cure, the expenses can add up. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Vidit S.

How many members in this theoretically LLC? Virtually anyone can do single member LLC --- multi-member LLC is trickier. Also what size of deals? Giving more information will be helpful in the forum recommending the right level of attorney.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Denise Pauzano

Depends on the basis of eviction and what your lease says. As a general rule, the tenant has the right to cure the default by paying the rent (e.g. 68 P.S. § 250.503(c)). The question is whether you have the right to collect the other costs associated with the initial eviction process. You will need to look at your lease to see what it says.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Justin K.

If there is a claim against you that is actually worth pursuing, the plaintiff lawyers will find you and your assets. After a bit of discovery, they will find out who owns the membership interests in "Main St. Loan and Finance LLC." After that, it's just another target. This particular strategy may also risk what they call "merger" issues --- basically the idea that a mortgage disappears when the mortgagee is also the owner.

Maybe I need to think about it more, but I honestly can't think of one benefit of doing this. 

If you have a net worth to protect, I would just work with a proper asset protection attorney to discuss what you need to do. I would say you want to make sure you are not doing anything catastrophically stupid (e.g. unknowingly forming a general partnership with someone you shouldn't). You will also want to take advantage of "free" asset protection features such as tenancy by the entireties. If your wife is willing, you can even look into her working --- even part-time --- to take advantage of 401k protections (some rich housewives do this). At some point, you could look into more restrictive tools like irrevocable trusts. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Trevor Deeter

I forget what the exact language says but Scranton does require a property manager if you reside outside a certain mile radius. Now I can't remember if they require an actual property manager or just a local contact. 

There are many successful Scranton investors including @Adam Guiffrida. But it definitely has some oddities when it comes to local laws and politics. Also, the rent range is pretty wide. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Trevor Deeter

I don't think the State Real Estate Commission opined on this exact question. But I would think the Commission has shared its thoughts on a real estate salesperson engaging in a transaction with a regular consumer. I know there are opinions cautioning attorneys when getting involved in transactions involving an ordinary consumer on the other side. So I would check to see if there is any guidance on the matter. 

I also agree with @Josh Caldwell that you may want to check with your broker. I don't know how restrictive your agreement is with your broker. But some can get pretty draconian.  

There are some factors consider when dealing with husband and wife LLCs. One issue to consider is whether there's a prenup or postnup agreement. You'll also have to consider what assets you guys own individually versus as tenants by the entireties. Depending on the situation, you are arguably better off not having both the husband and wife as members of an LLC. But again, it depends on the situation.

Virtually wholesaling wise, that's hard to say since you are dealing with multiple state laws. I assume you might be able to get by with just registering the LLC as a foreign entity depending on the volume of work you do and the level of risk. I would equally be concerned about the language of the contract you use. I see so-called "works in all 50 states" forms and they are almost universally terrible. For example, many of those forms are not appropriate in Pennsylvania since it is missing some mandatory language (e.g. RESDL disclosures). It seems risky to me but I suppose everyone has a different level of risk tolerance.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Matthew Krishart

Welcome to BP and NEPA. There are a few folks from our area here on BP. Good luck!

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Denise Pauzano

The general rule is that the lease terms control. So you could theoretically say in the lease that the landlord does not need to provide any notice at all. But in practice, I typically recommend that people still give the 10-day notice unless there is some crazy, urgent reason not to.  

Note that eviction for commercial properties is a different animal. I would say most commercial evictions start with a confessed judgment and go from there. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Alex Acosta

Depend on the exact structure of the deal. The net deal using the Options method will still trigger at least one transfer tax. Assignment method can do funky things depending on what happens. Liability wise, the Department of Revenue generally doesn't care where the money comes from --- they just want to collect what they can collect. So really, the goal is to get the realty transfer tax amount correct regardless of what method you use.  

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.