All Forum Posts by: Jason Zundel

I would absolutely say that this is more of an opportunity than a bar for many in the situations you described above.  That being said, opportunity goes hand in hand with risk, so be sure that you are properly researching, planning, and investing with funds that are not required for you to live day-to-day.  So long as you are doing such, there are prime opportunities in a variety of markets to snag!

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

There are lots of options out there and that old adage absolutely applies - you get what you pay for.  I generally recommend that my clients get their first lease done professionally, based on the state, tailored to your particulars, and get it done really well.  You can then use that as a template moving forward for tenants in the same area. The terms and conditions found in a good lease agreement are vital to protect both you and your tenant.  Some states (even counties and cities!) have required notices or provisions that will get you in trouble if missed or forgotten.  It is worth the expense to do it right the first time!  If this doesn't fit in your budget, you might try some online sources - just make sure they are tailored to your state.  The local real estate association(s) are often a good source for templates as well.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

@Kyle Williams - In my experience it is harder to get traditional financing using an LLC vs simply in your personal name unfortunately. Many of my clients choose to get the financing first (lower rate, easier, less expensive), wait a few months, and then transfer the property into the LLC that will hold it long-term. So long as you are the owner and controller of the LLC you likely won't have to be concerned about an acceleration or due-on-sale clause for the loan.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

This is super helpful thank you! One note to add is that often those loans are not backed by Fannie/Freddie. It is quite common for investors to close in their personal name with a conventional loan, and then move the property in question from their own name to an LLC that they own (better asset protection, usually exempt from transfer tax, etc) and so long as the end owner of the LLC is the borrower, this will not trigger a due-on-sale clause on Fannie/Freddie backed loans. This is not the case for those DSCR loans, so make sure you are closing on those directly in the name of your LLC rather than your personal name when possible for added protection.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I would most definitely encourage you to do so through an LLC rather than yourself personally. I know, shocking that an attorney would push for more paperwork, but it really is by far the safest route. Especially as you are knew to the process from the sounds of things this will help ensure that if you do run into problems, if there are damages, if liability arises, etc. then the liability will be corralled and stay within the bounds of the LLC and not affect the rest of your life and personal assets. Now, in order for the LLC to really provide protection you want a good operating agreement, proper paperwork (deed in the name of the LLC, contracts naming LLC, etc.), and to maintain the corporate veil (i.e. open a bank account for the LLC and business expenses go through there and not your personal bank account). You can certainly move money from your personal account to the LLC bank account, that's a contribution and acceptable - just don't buy rehab supplies from your personal account or your kids clothes from the LLC account.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

I will agree that there are a lot of misconceptions when it comes to the use of out-of-state LLCs when it comes to asset protection, and further agree 100% with your description of litigation Stuart. That said, a properly used WY or DE LLC can be extremely useful, especially for real estate investors that own multiple properties and want to do so anonymously. The key is in how those are set up - you don't want the WY or DE LLC to actually own any of the properties, but rather to be holding companies for the individual state LLCs that actually hold and manage the properties. As Stuart said, the individual property LLCs will be subject to their state law and will run through their state court. The benefit comes after the judgment - your creditor won't be able to go after you individually for that judgment because you aren't the owner of said state LLC. They have to go through the WY LLC first as owner, and THAT'S when the charging order protection and WY laws will apply. Again, this won't protect the property subject to the suit, but it will stop the suit/judgment from attaching to your personal assets or your other real estate holdings. Proper maintenance of the corporate veil is very important here, but in doing so you insulate each individual property from liability. Anonymity of ownership is another powerful tool to avoid lawsuits in the first place by taking the target of your back individually.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

This is extremely helpful Enrique, thanks for putting this on all of our radar!  As an additional step, here is a link to find the updated law, and specifically the language needed for the rent increase notices can be found on pages 6-7 - 

https://app.leg.wa.gov/billsummary/?BillNumber=1217&Year...

That is a bit of a unique one, and you will need an insurance agent/group that focuses not just on residential real estate, but commercial usage as well.  We have worked closely and have great things to say about NRIEG - National Real Estate Insurance Group.  They work in all 50 states and focus on small business owners as well as standard real estate.  They might be a great place to start.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

Ooof, bit of a loaded question, but I'll take it from the perspective of legal limitations or impacts.  There is no specific rule of law that I'm aware of that limits your ability to use AI as part of your real estate workings.  Many firm and solo practitioners are utilizing GenAI heavily to streamline their business practices - everything from marketing to client communications.  The one area to be careful of is ensuring that if the activity you are doing requires a license, then don't rely solely on the AI.  Let's be honest though, this is going to be important to do anyway.  ChatGPT and the other more well-know AI tools are still hallucinating regularly, so check and double-check your AI output, as it's your license on the line.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.

@Alexander Rodriguez - There have been lots of credit comments, suggestions, and advice on this thread, but as many of them have been or are related to security deposits, I wanted to put this reminder:  In CT, landlords can't require more than two months rent as a security deposit. This limit is reduced to one month's rent if a tenant is 62 years of age or older.  That is a hard rule and if the patter holds true and the tenants do cause problems later, you will be in trouble for requiring more, which can hamper your ability to recover and even affect the timing of an eviction.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.