All Forum Posts by: Chris K.

@Sanil Subhash Chandra Bose

I don't know if he is still around but John Maida, Esq. seemed knowledgeable and in the general area. I know he has done a lot of quiet title work. 

I would just say that before you go full scale, get an attorney to order a full title search and do a proper review. I have had many buyers get excited about a "steal" they had a upset sale. The problem is that they searched for liens and judgments but didn't really do a full title search for things like restrictions (e.g. HOA). So, they didn't realize they essentially purchased land that is completely worthless beyond just serving as a green space.

Not saying that is the case here. But it has happened so many times to folks I've met over the years that I raise it as a possibility. 

Disclaimer: While I’m a licensed attorney, 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.

@Austin Latty

You are basically making a capital contribution to your LLC as the owner. That should be fine but hard to say without looking at your operating agreement and structure. In those situations, you may have to make a loan. Either way, I would engage the services of a tax professional as you do need someone to help you maintain your books if you haven't done so. 

Disclaimer: While I’m a licensed attorney, 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.

Breach of Implied Habitability is mostly a factual question. Based on the facts you wrote, it sounds like you tried to fix the alleged breach was prevented from doing so. If so, that is a very good fact pattern for you. But it's hard to judge on an online forum.

I would just note that in Pennsylvania, all appeals are reviewed de novo. Meaning from the Court of Common Pleas's perspective, it is as if the magistrate hearing didn't happen. If you haven't already, get a lawyer as it is generally a bad idea to be a pro-se litigant. 

One item I don't understand is why is your appeal only being heard now? If they filed a timely appeal, it would have prevented their eviction. 

Disclaimer: While I’m a licensed attorney, 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.

@Neal Patel

This is a space where I have a good amount of experience in. As @Henry Clark pointed out, there are many operators in the space that do not want to own the building. They are essentially looking to enter into a long-term lease with a building owner. 

You will need to decide whether you will act as the operator or just the landlord. Depending on the answer to that question, you may have different loan options (e.g. USDA, SBA, Freddie, Fannie, etc.). Some people also focus on LIHTC angle as well. There are also REITs and PE money in the space. 

In all situations, you still need some bring some cash equity. Without knowing more about what you and your partner are looking to do, it's hard to say what option is right for you.  

Disclaimer: While I’m a licensed attorney, 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.

@Brad T.

In the 2008 memo, the PA Department of Revenue looked at when assigning deals gets taxed. Say a seller and a wholesaler make a deal for $2 million. Then the wholesaler assigns this deal to a buyer for $3 million. The buyer ends up buying the property for $3 million.

So, what gets taxed? If we don't tax the assignment, it's $3 million. But the Department says sometimes this assignment should be taxed. They argue it's really two sales – first to the wholesaler for $2 million, then to the buyer for $3 million. That makes it $5 million.

If you are asking your situation falls under that sometimes situation, folks on BP cannot answer that for you. It depends on the actual facts.

Disclaimer: While I’m a licensed attorney, 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.

@James McGovern

I have never seen one in the context of a residential lease.

You can make arbitration agreements binding. But not sure what benefit you would get out of it. Most eviction processes are relatively quick. Most states I've seen allow landlords to demand costs and attorney's fees as part of the damages. So, what is really the benefit?

Also, I would have to imagine that there is a caselaw out there in certain states that categorically ban arbitration clauses in residential leases.

@Joy Shaw

People do this all the time when they reach a certain scale. The main barrier is that having W-2 employees means you need to comply with all federal and state employment laws. This is a heavy administrative burden. You can outsource those burdens but that means you spend more money.

One other item to consider is that property management is a cost center versus a profit center. Not saying that is a dispositive factor. But typically, business owners are willing to deal with the above administrative headaches if each employee brings in enough revenue/profit to justify the costs. A somewhat crude rule of thumb I use is that each employee needs to bring at least three times the profit/savings of their total cost. In other words, let's say you find a property manager for $50k. They need to provide at least $150k of "value" for me to consider hiring them.

Most small real estate investors probably don't have a way to get $150k of value from a $50k employee. Now you could try to utilize that employee for other revenue-generating activities. For example, you could have the property manager also do some handyman work for other folks. But at that point, you are not really just an investor --- you are becoming a small business owner. That's fine but something you need to be realistic about. 

At 65 units, it might be doable. But hard to say without knowing more details like geography. You also need to factor in things like real estate professional status to maximize your tax savings. You guys might be in a good spot to take full advantage of it. But it's something you guys should work with a qualified professional on. 

Disclaimer: While I’m a licensed attorney, 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 Battiste

There is no "right" answer. But foreign registration is typically easy to do. The fact that Zen Business cannot support that basic function really shouldn't be a factor unless it is some magical service otherwise. 

Basically, the more LLCs you have, the more time (or money) you spend managing it. On the other hand, you are taking additional risk if you roll up everything into a single entity. In most situations, you are trying to find a balance between the two. 

Disclaimer: While I’m a licensed attorney, 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.

Haven't researched this in a while. But consent can typically prevent wiretapping claims. This is why call centers often start with a message about recording the call for quality control.

I wouldn’t recommend, however, relying solely on oral communication even if you record it. We typically do not aim for precision when speaking. So it’s not ideal for capturing all key terms of a contract. That’s why we use written contracts. They not only record the agreement but also help identify ambiguities that might be overlooked in conversation.

So I agree with others: find a contractor willing to sign a written contract.

If not, consider summarizing your chats with the contractor and sharing them via text or email. This creates a trail for future disputes, showing your effort to ensure mutual understanding and giving the other party a chance to correct any inaccuracies. If the other party disagrees with your summary, they can voice it. If they don’t and later raise issues, a judge will likely question their silence.

This practice holds true even with a written contract. Language can be ambiguous, as evidenced by Constitutional cases before the Supreme Court. Post-signature actions can help courts interpret what the parties agreed upon.

Disclaimer: While I’m a licensed attorney, 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.

I would say Scranton (and its sister city Wilkes-Barre) are investor-friendly. There were periods when municipalities were being difficult. But I think it calmed down over the years. Based on what I've heard from my former clients, things seem fine overall.

It's a small community so you can't really burn people. As long as you avoid creating enemies or otherwise being an irresponsible landlord, I think most people will be fine.

Disclaimer: While I’m a licensed attorney, 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