All Forum Posts by: Jerel Ehlert

A JV is an unfilled partnership, with each partner unlimitedly liable for the acts of all other partners in relation to the subject matter of the partnership. "Templates" are discouraged, even when the business model is very similar for each transaction. Your purpose and vision may be the same each time, but your "partner's" vision might be very different. Going in, you need to understand what each party's expectations are and responsibilities will be. Otherwise, these are ripe for lawsuits. If it is the same parties each transaction and will last more than a year, probably better off with an LLC. Duties are defined by contract instead of fiduciary duties, which are MUCH higher.

I've done these many times.  Sometimes they work.  Sometimes they become a dumpster fire.  Sometimes I'm brought in to put out (or lite) the fire.

If a Harasser was causing issues in a complex, they will drive out other tenants, invite police intervention, increase probability of violence/death, and lower your cap rate if left untreated.  In other words, LL has an economic incentive to be a decent human being and get rid of the bigot.  But hey, if LL is a bigot too...

If you are just getting started, there are numerous threads asking many common topics.  Reviewing them will save you the time of posting and hoping someone answers with relevant info.

Might be buying a lawsuit if you let the tenant stay based on habitability issues.  Might ask the tenant to move out for remodeling, with an agreed lease rate and option to lease it when done.

As for the TV mounting, most holes are not much bigger than a 1/4" hole.  If it can be covered with sheetrock mud, consider it part of wear and tear.

As for hardwood, you didn't take pictures for marketing?  Can't remember the state.  Are you planning on making repairs?  Unless you are planning on repairing, sounds like wear and tear.  

Re-keying is not optional in Texas.

Best practices are to sell with owner financing or on a wrap.  Both convey title and take back a promissory note and deed of trust.  Use an RMLO and loan servicing company.

Once you have a perfected M&M lien, you have 24-months to foreclose.  If not, yeah, they can be removed.  If there is a mortgagee on the house superior to yours, you take title subject to the superior liens.  Junior liens are wiped out if done correctly.

Once the notice of foreclosure goes out to the owner and lien holders, pretty certain that someone will pony up.  You just need to take it to the next level.

Correction to my earlier post: The statutory retainage under Tex. Property Code, sec. 53.101 is 10% of the contract price or value.

@Andrew Taylor, while contractors don't want to get ahead of investors, they have ample protections under the Texas Property Code, Chpt. 53. Mechanic's, Contractor's, and Materialman's Liens.  More than a few cases came across my desk where the owner claims the contractor was paid (with receipts) and the contractor was blackmailing the owner for more under an M&M lien they fraudulently filed.

Definitely want to stick to comments on Texas and not other jurisdictions. L/O and CFD are verboten, but not strictly illegal. If the buyer is not a consumer, most of the restrictions fall away (hint: works wonders for deal structuring in other areas).

There are tax implications involved.

Attorneys are for legal advice and deal structuring.  Investors structure deals w/o attorneys that can make it harder to work.  Sometimes when it looks like a deal, but can't make it stick, we can nail it.  Sometimes investors get a deal that is unenforceable.  

It should always be an arm's length deal.  Especially when the parties have a history.

Hope this helps.