All Forum Posts by: William Morrison

Nathan, be sure to check the Claw Back provisions of the state you are selling in.  At least your note implies you are selling out of state and buying in state (maybe not).

One of the states I have property in Maryland does not have Claw Back provision but requires some evidence over time that the 1031 exchange was in fact executed and held.  The other California does have Claw Back provisions and the associated tax and record keeping requirements.

I know your looking at the investor  for source information which makes up the basic audience here.
I think you should check with several lenders/mortgage brokers and see what they are looking for as well.

I was working on one single family rental to four and the loan side took the most work.
Identifying the targets in the first 45 days was easy.  Knowing I could settle in the second 45 was not.  Lenders can be pretty vague.  <Grin>  And that's pretty unsettling.

 Wayne, that's how I understand it as well.  My properties are in Montgomery County.  I use a property management firm that's pretty big.  They and the previous firm I used seemed to say the same thing.  It's an opt in program.  I used both as placement firms.  I would consider S8 if the met the screening we use for any other tenant.

I use a placement firm because they have access to renter data bases that I can't afford and they do a great background check.  Keeps my trouble rate down and gives me better chance of good tenants.  The other thing you get by using a placement firm is that when and if a potential renter is turned down the system looks at the firms track record which is much bigger than mine would be.  Much easier for them to show a consistent track record.  We have turned down at least one S8 application but not because it was S8.

We can't offer a lease less that two years in Montgomery County.  The tenant can counter with a one year and we can accept but we cannot offer a one year.

 Marie, I enjoy your posts.  I have property in Maryland, California and North Carolina.  Having family from California from the early 1800's and still there, I get to see the West Coast trends and then compare them to Maryland, my home for most of my life.
Maryland tends to be pretty liberal and a lot like parts of California but it has three distinct areas as politics go.

I find in general that the North East from about Maryland on (Yes I know we are technically below the Mason Dixon Line <Grin>) tend to act on a inside out legislative process, city first, then county and then state.  Wayne is from Cockeysville outside of Montgomery County and he's probably correct, it's not state wide.  I live a mile or so from Glenmont and my properties are in Montgomery County.  Montgomery County has some of the strongest tenant's rights laws and rules in the country.  My lease has to start with a 30 or 40 page template they give us and I have to hold a license for each property.

What's humorous about the template is sometimes I wonder why or where some of the protections came from or why they are required.  Would any landlord actually not do the simple things listed.  Then over time on this site I have found someone claiming to enforce their right as a landlord not to provide those very things.  I had to show my wife the thread where a landlord went on and on about being in the right when his tenant complained about not having a refrigerator for several weeks while the landlord spent that time looking to save $100 on a used one.  Bought it, put in but never tested it.  The freezer portion didn't work.  Then another week.  Guess what in our county template there is a timeliness clause. 

As someone said above run it like a business.  It's just stuff.  If the numbers don't work move on to the next set of numbers.

Hope you have a great California day.

Couldn't find it using BP search but it came up in a DuckDuckGo search.
Great thread in about 2009 on naming conventions.

http://www.biggerpockets.com/forums/109/topics/285...
Even had some great ideas on how to be sure to get sued.  <Grin>

Like the series deal but some states don't allow it.  Funny when I started buying real estate I think there were still four states that did not allow LLCs.

Just a side note: LLCs do provide benefits when passing on assets not available when in your own name.  It's not just liability protection.

Thanks Jake, all though I live in Maryland they wont be here.

I do keep books by property anyway, except for general overhead which is a separate entity for the most part.
My bank accounts are free and it helps with the books.

Also lost in the LLC assumptions is that it's personal.
A Checkbook IRA is best done in a LLC in my opinion.
And I have both personal, IRA and 401k to deal with.

Curt, the LLC vs Insurance is probably a little off from my question, but I will ask you anyway .

Do you see a Square Foot, Total Asset or maybe just number of multi-family doors as a break point for you?

I'm looking at a 50 unit apartment complex and the costs you mention disappear vs the insurance and the things the insurance doesn't cover.

Or let's say a single or multiple collection of single family homes with a net worth of a million per entity.

By the way text never gives tone very well.  This is not meant as a shot or argument.

For those of you with multiple LLCs for your rentals, what types of naming convention do you use.

I've heard a few like street address, or plain numbers.

Some states don't allow just numbers and some baulk at initials.

JD

I looking for an Android App for my S3 to track Mileage, Hours and Incidental Expenses.
Mileage most important then Hours.
Tried Time Tracker today for hours only.
One board said it could do Mileage but I couldn't see how.
There a companion App but Google crashed and the app stopped, imagine that.  <Grin>

You're right Jon,
And most years I have losses to carry forward.
And sometimes even with a loss, a line in the K1 triggers a minimum tax in CA.
CA has some different Partnership rules.  It's an island sometimes.

All that said I see many have investment properties in multiple states and I'm looking going outside of Maryland for the first time.  I'm looking down in Charlotte, NC.  My daughter has moved down there and I just retired.
It seems I can get into a decient property with a 1% rental and good schools for about a 1/3 of the cost in my area.

Just trying to figure out how complex I'm making my life.  Just stuff.  Seems very workable.