All Forum Posts by: Marc Winter

Speak with your other neighbors around the house there, and get their impressions of that resident.  That should give you other perspective of the residents of that property.  If it's all bad news, I'd do the following:

When it happens again, go to the neighbor with Bubba.  Or make friends with a police officer and have them accompany you.  Make sure you video the encounter--probably will be an entertaining exchange.  BTW, if they are dirt bags, criminals or cookin up a new batch of chemicals, they won't ever open the door. 

Take photos of the vehicle and tags.  Keep a time log.  Tow if you must.  Install internet and exterior video cams. Purchase a Simply Safe or other type of alarm system.  (You can use it on other properties in future.)  Doesn't matter if it is even an "A" neighborhood--stuff happens!

Until this situation is resolved, don't go there without your Bubba.  Safety is number one, which is one of the reasons we NEVER allow any of our staff to show property to unknown prospects after dark.  And hey, you're in Texas, right?  Doesn't EVERYBODY there carry?  LOL.

Wishing you the best of luck! 

Did you call or did you send a questionnaire that was accompanied by a signed authorization from the prospective tenant to disclose info?  If they are totally uncooperative, which because of possible litigation is understandable, search of l/t court for your location will show if there was action(s) against them.

If the prospect is still living there, ask to do a home visit to see exactly how they live.  If they balk at that, think red flag.  @John Underwood makes a good suggestion about the car which I found works well also. 

One thing we do often, is CALL the previous or 2nd past landlord/manager.  If they balk at answering any of your screening questions, tell them, "ok, I understand you cant answer those questions...  but let me ask you this:  would you rent to them again?"

Silence, laughing, grunting or a HELL NO!  will tell you what you want to know.

I'll try, but I have some questions: who advised you to set up LLC with you as sole 'member'? (There are no 'presidents' in LLC's.) Did you discuss the function of LLC and Land Trust with your attorney? Since a single-member LLC is basically 'transparent', what would it accomplish to have an LLC as trustee? (I could understand if you wanted to make the LLC a beneficiary, however that could POSSIBLY cloud your exemption re state transfer tax and/or bank exemption via Garn St-Germain.

The title company and bank/lender will use exactly the same entity as whichever holds title either refi or purchase.

Perhaps you should consider asking your lender if they will lend to your trust.  Or find one that will.  Additionally, you could take title in your own name, and later record a trustee's deed that establishes the trust--no due on sale, and no transfer tax if done correctly. 

BTW, if you purchase in LLC and transfer to your name or to trust, (or visa-versa) you probably will face transfer taxes--check with your local and state transfer taxing authorities or your title company.

Lastly, (not being an attorney, but dealing with them in regards to real estate for over 30 years) I can tell you from my own experience, if they cannot/will not explain the pro's and con's of the entity structure you are looking for, I'd look for another attorney.  And if that is the case, I'd have attorney #2 review attorney #1 land trust docs, just to be certain.

Good luck.

The land trust is a title holding entity in which the trustee becomes owner and a fiduciary for the beneficiaries.  If you take title in your own name, you have the right (see Garn-St Germain law) to establish and transfer title into a intervivos revocable trust. 

https://en.wikipedia.org/wiki/Garn%E2%80%93St._Ger...

If done for 'estate planning" purposes, it will NOT trigger the 'due on sale' clause in most mortgages.  Disclaimer--I am not an attorney and am not giving legal or accounting advice. 

I have found the 'land trust' to be a great mechanism to hold title, create anonymity (read privacy) and protect/separate all other assets not directly involved in any suit or lien against the subject property.

Since the trustee is a fiduciary of the beneficiary(ies) you could have a close friend, relative, yourself or anyone you choose act as trustee.  They can act only with the direction of the beneficiary(ies).  AND, by the way, can be terminated and replaced easily.

Do your due diligence and good luck!

@Michaela G. --  we've had the same thing happen.  If an ad is on any site, contact that site and make them aware of the scammer. 

@Craig Smith--Definitely file police report and supply the police with the 'contractor' lock changer info.  However, I suspect that contractor was simply at the wrong address.  Let us know what actually happened when you find out. 

Also, we are local to your area and would like to know the name of the lock-changing contractor (so we can avoid) PM me if you would.  Thanks.

Let's take a deep breath and a step back to 30,000 feet.  Cities form, grow, shrink, decay, then urbanize and cycle over again.  Suburbs spring up, increase in values and then depreciate some as taxes rise.  This is the ebb and flow of real estate and is natural and normal.

NYC, for example, has seen amazing urbanization of areas that 20--30 years ago were war zones.  Now they are chic, trendy and over-priced.  Of course that displaced some people.  To where did they move?  Suburbs or other, less expensive areas/cities.  More than 200 tenants in properties we currently manage in Scranton and Wilkes Barre came from NYC and Philly--here they can rent a 1,700 sq ft 3/2 single for LESS than a small studio in 'the City' (rent-control of course, excepted).

So, what's a mother to do?  Listen to your heart, but pay attention to your gut/instinct;  how can you help anyone else if you yourself and your family are not in the position to do so? 

If you are a real estate investor, then invest!  No one will prevent you from following your heart and providing help, be it financial or emotional, to those you feel are in need of your assistance.  That is not a bad thing. 

However, to be stymied by thinking that you can stop change and natural growth (yes, it is a natural cycle), that, to me, can lead only to frustration and wasted energy.  Stay mindful, remain focused on your goals, and carry on.  You will find a way to make it all work.

Best of luck!

Allow me to opine on how to stay 'market crash proof': buy great deals that are under current market value (with terms from seller when possible), and if you purchase money mortgage or re-fi, don't go over 60% LTV. Fixed rate 15-year mortgages only--time flies when you're havin fun and it is really sweet when those mortgages get paid off.

Rent must cover ALL expenses, PITI, maintenance reserve, vacancy reserve, etc. Keep a close eye on your properties and keep them well maintained. To me, cash flow from rentals during the first few years is not for spending, it's for reinvesting, either in improvements to the 'generating' property, or in search of another.

If you need cash, do some buy/fix/sell.  If the goal is to eventually kick back and have a huge monthly income, get some of those houses paid off, raise rents, have a good manager, and enjoy life. 

No one can 'time' the market accurately, except in hindsight.  And remember, appreciation of asset should not be the driving force for buying the rental--rather if and when it happens, think of it as a gift.

Lastly, real estate, like all aspects of the economy, has its ups and downs.  Adjust if you must, but on rent/hold, think very long term.  I am thankful every day for real estate being so good to me and mine.

Good Luck!

Faint heart never won good deal?  If you are in a really hot market, and you really want this property, I'd go knock on his door!  If not home, leave him a handwritten note with contact info.  And follow up is key--as a broker since the 80's, I can't tell you how many, many deals I've made by following up many, many times after initial contact. 

Don't think about it too long--some other investor might just be ready to go there today.  From my experience, best way to overcome fear is to FACE IT and TAKE ACTION.

Hope this helps.  Good luck.

IMHO:  there is need for this type of service.  Pricing: $75--100 per unit on multi, $150 on single.  Caveat: FULL DISCLOSURE--if you are licensed, disclose it, if you are NOT a home inspector, disclose it. Let the 'client' purchasing your service know you are simply providing photos or video, and any comments you make about the property and/or neighborhood (be careful about HUD discrimination laws) are you own opinion only.

When we are asked about any neighborhood, we tell the person to take a look at the photos, and Google the demographics, crime rates, school ratings, etc., and make their own judgements.

Good luck!

We've been using TLO and I'm very impressed!  Simple user interface, and you can drill down as far as you want to go.  Can't comment on the other sites, but I'm happy we have TLO.

Good luck.