All Forum Posts by: Grand Wally

What a great story...

This actually proves something I've believed for quite a while. SO MANY PEOPLE in business....especially being a landlord as a business...think that you have to be a total cut throat, text book a**hole to people to run a business. What a bunch of crap. If a person manages a business (even real estate) by being an a**hole, then they are usually doing it because they are too ignorant to manage using actual people skills....

The landlord you speak of was good to you and your family and went above and beyond to be a good person to you. Maybe this is the reason you were good tenants....what a shocking thought....

I am a math person, and I can tell you that averages are subjective, no matter how they are applied. A statistician will tell you that a person who has one foot in a bucket of hot coals and the other foot in a bucket of cold ice should feel average....

Mike's rule, while valid in some scenarios, is just that.....valid in some scenarios. Yes, Mike, you have tons more experience than I do (and most others) in rental situations. But, this 50% rule in my mind is the really applicable if you hold a property in perpetuity. If you buy, rent out and hold for 3-5 years, then sell for profit, the probability that the 50% rule will apply to your properties is diminished because 3-5 years is not enough time for things to go wrong that would have otherwise gone wrong if you hold a house for say 15-20 years.

Call or visit online with your local property assessor.

Flipping is also a good way to lose cash very quickly as well....very quickly.

Terry...

a) Calm down. It will all be ok.

b) Go to www.mycorporation.com and get your LLC formed.

c) If you buy the house before the LLC creation is done, when the LLC formation is complete, go to your RE lawyer and ask them to "deed the investment property over to the LLC". At the same time, check with this lawyer to see if setting up a C corp is actually the best thing for you to do. It might or might not be.

d) Most importantly...have fun and be smart.

Yes I would do a credit check. But, as for her illegal activities, who cares as long as she pays the rent and takes care of the place?

Think about it this way....think about landlords who specialize in renting to college students. Now, think about how many college students have fake ID's. Do you think it matters to their landlords?

Is this woman a crook if she does in get a forged license? Yes. In the scope of your relationship with her does that matter? I don't think so.

Assuming you are withing driving distance, go to the office and sit in the lobby and ask for the person. Don't be like a stalker or act weird, but just show up and ask to see them. It speaks volumes much louder than leaving a message on their voice mail.....

When you buy a property, tell the banker you want to put it in the name of your LLC and you wish to be the personal guarantor on the loan. If they don't know what you are talking about, then they are an incompetent tool. Ask for somebody else in the department to handle the loan instead who has some seasoning about themselves....

When you are at the closing table, you will sign the paperwork as yourself as a 'member' of the LLC....

Drive around a particular area, look at houses for rent, call the owners and ask them. You will then get an idea of a range...

You don't need an attorney....just my opinion...

Go to http://www.mycorporation.com. Very easy and cheap.