All Forum Posts by: Erickson Sainval

Definitely a few ways to do it Kyle. Definitely suggest to address it with a real estate attorney.

The way my attorneys have advised me is through Land Trust. 

As for other ways I have read about is quit claim deeds. You could also simply speak to the lender to see if you can have title transfer it over to the LLC afterwards. Definitely get it in writing rather than a word of mouth. Some lenders will be fine with it as long as you still guarantee the loan.

There are pros and cons to many of these, find help, and do your homework.

 Thank you! I agree.

 Thank you!

The question to as is what is your end goal?

Are you ready to take the step and build your portfolio? If so, this would be the best way to start. As you can see yourself the area around you is appreciating well.

I would look at doing a refinance to see what you could pull out tax free (be sure to shop around). If you can keep the payments about the same or lower, you might want to consider it. I would keep 3-6 months of payments in reserve depending on your risk tolerance.

For me, the next home would have to be a 2-4 unit to gain the benefits of house hacking. If you cannot find one to meet your requirements and exhausted all options, then would look at a single-family home.

Now with 2 properties comes greater responsibility. I would revisit your budgeting and accounts to make sure you have the necessary financials to support any unforeseen problems.

On the other hand, if you are not ready to make the step towards building your portfolio the answer is easy. Sell the home and get the exemption to get the proceeds tax free since it has been your primary and you lived in it 2 of the 5 years. I would think this is not the case being part of this forum.

I have not rented to college students, but I have rented my clients home along with minor property management.

It honestly all depends on the screening you do beforehand. You could simply do your background check, sign them, and move on. If your worried about them taking care of the home than either your property manager or you must take the extra step to screen. Speaking with the students who plan to occupy has allowed me to gauge their maturity. I would speak casually with them about their school schedule, use for the home, how they were planning payment, etc.

I would also speak with the parents and I would say I found better results when I had one or more of the parents sign as well.

The contract and how it is written, or contingencies added are important. Our contracts covered pets, waterbeds, parties, etc

I also found better care when there was a spread of say seniors, juniors, sophomores, and freshmen. You could say the senior would serve as the moderator of the home and representative. When you have all freshmen, it makes it difficult as you have the young guiding the young.

If anything, try it for the year and see if you like it.

I have not run into this issue. 

You might have to look to see if anything was changed zoning wise. Provide a copy of the ADU and letter detailing what happened to the lender, it might help them better understand the situation. Could be a potential chance the appraiser has not dealt with this, you could request a second opinion.

If you do end up resolving, I would be interested to know how for the future.

Easiest way to solve this is to bill back utilities. Getting the proper systems in place could be costly but it will forever save you the headache. So, it is up to you to determine and understand the value in that.

As for approaching your tenant you must ask yourself a few questions. Is this a problem tenant? have I spoken to them before about this issue? Is this a big issue or is the current environment I am in causes this to be a big issue?

I usually approach these issues indirectly by providing them the details of the problem. Provide them the usage and bill, letting them know if this persist than water will become billable. If this is an issue in your state and you cannot do this, I would continue to reach out in this forum from those facing the same issue.

I don't think the problem is REI related. You have to understand that your spouse may not have the same love of REI as you. My wife does not, so I can understand in that sense. The worse way to approach it is to force the idea of real estate. You have to slowly present the idea to them. Some are not as easily moved or spurred by the benefits of REI. So to solve that issue, slowly integrate them into REI. Find out what their goals are and show them how REI can help them achieve it.

Communication will get you far, and understanding when your emotionally driven and not logically driven in your speech will take you far.

Next, it looks like you are in need of a mindset change. Either counseling, mentor, or something along those lines would be beneficial for you. You need to regain the confidence and the love of "self". You need to get back to loving yourself and being confident in your abilities.

I'll be attending.

It is all negotiable. I would present to him in a better way. You need to reassure him that you can close by being honest and letting him know that you have a pool of investors that can close. If you do not have a pool of investors than you at least can close through your business that is wholesaling. Their intent is to sell the home and you need to let them know you cannot ensure it closes without having the contract be assignable along with whatever other terms you need. If it is impossible to negotiate you kindly refuse and ask them if they change their mind to keep you at their forefront.