All Forum Posts by: Jerel Ehlert

Follow the law.

If you want to be an *** hat LL, the legislature will react and your bad actors will be the cause of further regulations.  Sure, do any business long enough you will get burned, but you can minimize risk.  @Ryan Murdock, your screening might be thorough, but your model is weak if you throw morals to the wind to re-enter and re-take property.  

And if parking is not in your lease, and you tow, there are different tow statutes in most states.  Now you must comply with that set of statutes.  In Texas, violation of the tow statutes are also deceptive trade practices (can add x2 to x3 damages).  And a tenant's vehicle *is* their property.  If enough LL's do this, and enough T's get screwed, you invite regulation into your market.  Be ready for criminal charges for theft and conversion.

If your purported reason for towing is so you can get paid, almost every tenant needs transportation to get to work.  By towing their vehicle, you impede their ability to earn.  Self-defeating (not to mention, again, a dick move) actions.  The FED statutes spell out how you get the property back if they fail to pay rent.  Don't like following those statutes?  Don't be a LL.

So, for every statute, rule, and regulation you ***** about, it is there because enough people were being big enough of a dick, creating enough harm to society, that the politicians had to step in and do something.  Don't be a dick.

@Ryan Murdock There is no "feeling bad for the tenant".  The only thing the LL has a right to is payment of rent due or possession of the property.  Each state has a set of statutes for proper ways for the LL to regain possession.  Follow the damn rules or you don't belong in the business.  The premise is this: to the LL, it's only money.  To a T, it is basic needs.  

Maybe we are too many generations removed form cold hearted landlords kicking families out in the middle of night with a couple of bully-boys with clubs.  Yes, that really did happen.

So if you have too many deadbeats, maybe you should re-examine your qualification standards and screen your tenants better.  If you follow the bad advice of taking your tenant's property, you will be sued, and loose, and owe thousands more than you hope to get in lost rent.  Again: Don't be a dick.

@Ross Trampler probably found an attorney already, but want to put out there that I am expanding my Houston practice to Austin.  I started as a real estate investor in 2000 with wholesaling, then worked with a partner to rehab, and not until after the 2008 crash did I go to law school and get licensed.  Been in practice about 2 years, but come with 15 years of real estate experience.

I'm a TX attorney.  Really should have a lawyer draft the deed.  Most will charge $100-200 + filing fees in your county.  Consideration is required, but we are a non-disclosure state, so that language you quoted is pretty standard.  I'd suggest you also read your deeds.

I disagree with this part.  Flat-billed is pre-packaged time.  Clients that abuse the privilege will get a warning then billed for excessive communications.

Yes, because we sell our time.  The charge should be reasonable.  Even on flat-fee billing, which is most of my transactional drafting, if the client abuses the privilege of the fee structure with excessive emails, I will warn them that I will start charging for correspondence.  "Flat-fee" is not a free-for-all, but pre-packaged time.  If you start "just asking a question" without charge, next thing is we have 20+ people "just asking a question" without earning income for our time.

As an investor, how many times can I use your property for a few hours for free?

I'm going to stop you after the 1st sentence of your 1st post.  That is a dumb *** idea.  1st rule: Don't be a Dick.

Besides that, while I am only licensed in Texas and not Virginia, I can be almost certain that your idea is PROHIBITED under your state's property statutes.  The United States moved away from self-help remedies starting in the late 1800s.  Use the eviction ("forcible entry and detainer" or FED) statutes.  Otherwise, you will end up loosing your property to the tenant.

Going to depend on family law statutes in the state where they got married and the state where the LLC is registered. I'm only licensed in TX, so try reaching out to those states.

Talk to a family law attorney to get a cohabitation agreement.  This will prevent claims of "common law marriage" and her taking half in a split up.

What would the ARV be if you did the repairs? If you could get a loan for the repairs, and you got it fully occupied, could the rents support the debt?