All Forum Posts by: Jerry W.

@Nathan Gesner, I would assume your manager is already advertising there.  That is the only place I advertise now, AIR BnB, and VRBO, this summer they kept me pretty full.  Some is from repeat business, but they are my big drivers.

@Loren Odegard, I am over in Thermopolis.  there are a few folks in Casper I talk with every once in awhile.  I think now is a decent time to buy in Casper.  Give me a shout if you want to chat sometime.

@Bentley McKean, I think the ordinance would likely refer to the owner being required to have a license being the owner of the business entity carrying it on.  Be sure to check that out first.  Odds are you need a license.  As to profit, I think it has been covered.  Look for a property that you can rent on a long term basis that will cash flow at least a little, then look at Air BnB numbers.  With the way laws can change on STRs you should check with local rules.

@Phillip Scalise, much of the entity and protection entities are personal preference. I started off in a Sub S corporation due to some partnership reasons when I started buying solely for investment. Still my first 3 or 4 properties were all in my individual name and I think that was the best route for me. It can be hard to get your first loan or 2, and it is easier when you do it in your own name, the interest rate is cheaper that way, and there can be some substantial tax benefits if you live in it for at least 2 years. There is a cost to creating and maintaining entities. It can be hard enough financially to make a go for the first couple of properties anyway, making it more expensive can be a problem. I really don't think the anonymity thing will work for most folks here on BP because you do so many of the things yourselves that it is nearly impossible despite the paperwork. For example who is going to go to showings on properties? Who is going to submit and sign offers and negotiate? Who is going to do some of the work or hire contractors? Who is going to talk to the bank about a loan? Who is going to place adds and answer phones, and interview prospective tenants? Who is going to sign leases? Who is going to sign checks? Who is going to inspect properties? You see what I mean? How will you be anonymous if you any or even all of the things above? I really don't like trusts except for estate planning. Legally you still own the property and must list it in discovery like interrogatories and depositions. I really like tenant by the entireties protection, but those vary a lot from state to state. I do like LLC and series LLCs. I do not believe in an entity for every property. Technically that means a separate bank account and set of books for each property, what a nightmare. I do not believe in putting bogus liens on property, it is a VERY good way to have your entity protection pierced, and it is so easy to follow the money to you. If you stop and look NONE of the big players on here use anything but entity protection and insurance. All the trust stuff and anonymity things, none of the big players do it. They have the money, the assets, the income, but they don't do it. The only ones really pushing it are the ones selling it. Think about that. There are some things you should do especially if you are high net worth or high income, but not that many of us have those problems. yes there are frivolous lawsuits out there, they are not nearly as common in my area as I hear them tout. Work on building a business through net worth and income, and then buy the asset protection stuff when you can afford it. Again just my 2 cents.

Mobile homes built after 1976 actually have fewer fires than stick built homes.  It is the earlier models that have issues.

@Nathan Gesner, I am very glad you liked the location and view.  I told you my advice would change if you told me it was a mobile home.  My first inclination was to say insure the hell out of it and plug in a few electric heaters and let nature take its course.  All joking aside I really dislike mobile homes because as a fireman I really fear them.  Everything in them is flammable, nothing has any sort of a firewall.  The paneling not only does not act as a firebreak, it is a fire accelerator.  The paneling is usually wiped down with some form of oil to preserve it and give it a nice shine so it is mega flammable.  Fire races through them in minutes, and the walls and doors are ultra thin and so you cannot even use standard doors as the jambs are too wide.  I have in the past added sheetrock over the top of the paneling to make the walls wider so I can use regular doors.  Your walls are most likely made out of 2X2s.  What isn't made out of paper thin paneling is plastic, including most of your plumbing, not pex, just plastic.  Probably set up for a max of 50 amps.  Put smoke alarms in every room, and at least 2 fire extinguishers a fair distance away from the stove.  Make sure the exit doors and exit windows are in working order.  The floors are made out of the sawdust board, that is reasonably strong, but the glue falls apart very quickly as soon as it gets wet.  If your floor under the toilet and sink is not already plywood from replacing the particle board, it will be soon.  Spill water and leave it long enough and the floor will sag.  The little motors on the windows give out quickly and so they won't work.  Often the electrical boxes were just using outlets with lots of slots in the back, those usually develop shorts and catch fire regularly.  Replace every one of them.  I lived in the old mobile homes myself, and part of it with my kids.  That will never happen again.  The newer models are fine, they eventually required manufacturors to build them according to house codes, so enter drywall, roofs that are not rolled metal, better wiring, escape windows, exterior doors that were not tin covered paneling.

I have been in several mobile homes that were burning.  We actually saved one or two of them.  One was only 2 blocks from the firehall, but it had a lot of damage.  It spread so fast, we couldn't put it out because we could not vent the hot gases outside.  They cut open the roof, they thought, but they only cut open the roof covering the trailer house, not the trailer roof itself.  Everything from 3 feet below the ceiling was burned or charred or melted.  I would have to agree with @Bill S., have plans to replace it someday.  Get the smoke detectors with 10 year batteries, put one in every bedroom, every hallway, and everywhere but the kitchen.  With it being out of town the fire department will never be the ones to save it.  Make very , very sure it does not have aluminum wiring.  You can tell by taking the cover off of the breaker box. 

I don't mean to rain on your parade, and I am probably biased, but I have helped remove more than one body from more than one old trailer house.  They improved a lot when they got into the 1980s.

Hey @Nathan Gesner, no offense bud, but that photo looks for all the world like an early 1970 mobile home.  If it is a mobile home let me know and my advice will change a lot.  The paneling would all need to go, as well as the cupboard doors.  I probably have one tenth of your experience with vacation rentals, but I would pick a theme and stick with it throughout the entire house.  Pick your target group, see what they like and push the limit.  Despite your prior attempts you have never come to see my vacation rentals, unfortunately I only have one day open between now and early November.  I did one property in a duplex nice, but nothing fancy, the other side I called the Bunkhouse and put all kinds of Cowboy ornaments in it, like tables with horse legs, western logwood couch and bed, wagon wheels, varnished pine baseboard and trim, stainless steel appliances, hickory hardwood floors, antique oak hutches and dressers,walk in tiled shower with horses depicted on the shower curtain, elk antler lamp and mirror, etc.  My wife was not pleased at what I spent, but the "Bunkhouse" has outsold the "Cozy" side by almost 50%.  It seems that most folks don't just want cheap, they want cool, or unique.  If you cannot cannot find anything like that let me know and I will take you to my barn and let you look around there hehe.

@Carlos C., the problem is that you have not given us enough information to help you out.  How you invest in real estate and what your net worth is are really important questions in order to craft a plan.  Many of the anonymous plans touted by folks selling protection are not really workable for the average person.  Staying anonymous doesn't work if you are the guy negotiating the deal, signing the checks, screening renters, making repairs, etc.  It is not a one size fits all.

Bachelors Degree in History, and a law degree.  College for me was very important.  It helped open my mind.  Being a naive little farm boy from a very small town, I didn't know what I didn't know.  Once my mind began to accept new ideas and I became aware of the possibilities.  Maybe part was actually being able to get a degree.  A lot of people would have probably put money on that never happening.

I think it has really helped me in real estate.learning real estate law and being able to do contracts can help, learning to think critically about something to really try to understand it is a very valuable skill.  You learn how to learn about things.  Once you get the principal down it gets easier to learn more and more.

I was lucky and went to a junior college very cheaply and left there with no debt, then a state university for my undergraduate and law degree.  I never took out a loan until law school.  Some years I was only able to go to school for 4 months and had to save for 8 months for the next semester.  If I had quit going to college and gone for the high paying oilfield jobs I would probably have earned more, but learned a lot less.  Actually scientific writing and legal writing were very helpful in learning how to be very accurate and articulate were especially helpful.  You had to conform your thinking to be able to do it correctly.  Having to take a lot of math, science, reading, and economics, etc. was very helpful as well.  The real issue is do you apply what you learned.  That being said there are a lot of stupid degrees out there too.  Each person must find their own way.  Nearly every person I have ever partnered with has not had a college degree and some never graduated high school.  It is both about education, and character.  Still I wish I had taken a few plumbing classes lol.

@Scott Garrels if you just need to create the LLC and do not need the legal advice or operating agreements drawn up, there are literally hundreds of places who create them for you cheaply, and they serve as your registered agent as well. I mean cheap like $50 or $100, over the filing fees.