All Forum Posts by: Dale Stevens

You can also ask for copies of cancelled checks/bank statements. They can deny your request, but you can ask. 

I recently heard a story of someone that purchased a property from a bank ordered auction. The PM that was running the properties turned over the "leases" then went MIA when it came time to turn over the security deposits.

Seems all the leases that were called "Executed" were forged or frauds. Made up. They didn't match leases held by the tenants or by rental organizations such as Section 8. So be sure to do as Mark says and see if the tenants will share their leases, and if they match what the owner is giving you.

All a part of your due diligence.

Andrew,

There are many lenders in Chicagoland that will lend you up to 80% of the purchase price after purchase, given that you aren't taking any cash out. So you can recoup your investment (if you buy cash) after you close on your personal home.

With that being said, with 500k liquid, seems you could do more damage than just 6 properties. I am guessing you have time limitations due to your day jobs?

This is tricky. Let me start by saying I am neither an attorney nor an accountant. So my advice is solely based on my personal experience. 

Most real estate laws and entities are based on "Home Rule" meaning local law takes priority. For example, in Illinois you can file a Delaware or Nevada LLC, but if you do business in Illinois you must file as a foreign entity registered to do business. Basically you are now bound by the laws and taxes of Illinois regardless.

So where you have your properties, reach out and speak to an attorney there. Because the laws vary greatly from state to state. 

Again just advice based on my personal experiences.

Why respond? Obviously they aren't motivated, nor the type of person you want the stress of dealing with. Just hang up, and move on. 

Start simple. Visit the county treasurers website to see where the tax bill is being sent to.

Ah, a Sycamore! The alma mater of one Larry Bird! Welcome to Bigger Pockets. Curious, what are you studying/major?

Once you have an established relationship with a lender, it is quite easy to get financing for the LLC and the rates for insurance are NOT that much more expensive. But you know what is incredibly expensive?

LOSING EVERYTHING YOU HAVE because you didn't treat this as a business. Sort of like renting a commercial kitchen for a catering business. It is more expensive, but it is a BUSINESS, you can't cook out of your own kitchen for obvious reasons, let alone it isn't zoned for a business, etc.

You can get away with it for a while, but it will eventually catch up with you. I get slightly higher rates, yes. But it is WORTH IT, because I am a business person not a rookie/amateur that is rolling the dice. Further, Fannie/Freddie will only back 10 loans in your name if your Debt to income allows it. 

I have dealt with Midland. Very easy to deal with. I like them being local. As to your SDIRA being disqualified. Your father is not allowed to put in a penny. You need to be sure you keep immaculate records. If you put in $100 towards a repair, then, I believe, his IRA must contribute $100 as well.

The penalties are strict if you don't keep that in tact. 

Check out Midland's website.

First, you may be forbidden from using his money while partnering with you. I am not an expert on this, but usually the Vertical family lineage are dis-allowed benefitters from IRA stuff.

In Chicago, for me, there is just one SDIRA company.. Midland IRA on LaSalle and Adams.

I wouldn't even give them the opportunity to come current. They have proven that they aren't trustworthy tenants. For me, with tenants, I don't give second chances. This is my livelihood. If you went to work and your boss didn't pay you, you wouldn't work anymore. 

If you like the property, put the mandate they remove the tenant prior to closing! They can either evict, offer him cash to move out, etc. Their choice.