All Forum Posts by: Marc Winter

@Lucas Schlund, where to look?  Start local.  

Get in the habit of looking at and inspecting what's happening re listings and sales in your local area.  Local = no more than 30-minute drive from your home base.

Yes, I mean going out and looking at the neighborhood, the property, the surrounding amenities, etc.  The more property you inspect, the more of an expert you will become in your area.

Once you feel comfortable with inspecting properties, learning the right questions to ask, understanding your local market, and HOW to evaluate each potential deal, THEN you will know a good opportunity when you stumble upon it.

You can transfer those skills into looking at other markets and will have some clues as to what makes a good deal.

Hi @Kevin Kim, your post did not mention if you asked the powers that be (lol) if you could keep the one pole, and simply have them install a separate meter for each building.

On multi-family property, we have installed multi-meter boxes with external disconnects as per the electrical code in PA.  When electricity comes into a meter panel, the exterior panels can be expanded, separate meters can be installed, and of course separate service entrance panels with breakers.  

Check with your trusted local licensed electrician.

In PA the water company offers sewer and water main insurance protection.  Over the years, that insurance has saved our clients tens of thousands of dollars.  

Check with your water company (or sewer co if that is billed separately) to see if they offer insurance.

That being said, get the inspection anyway!

You are right--you need to close the title in your LLC. Since your experience level (1st investment) is very limited, I'd speak with some title companies to get a feel for comfort level in working with them.

You'll be asking a bunch of questions (you should!) and want people who are responsive and have the time/patience to interact with you.

Also, search YouTube for what title companies do, how they doe it, and what are the costs in your state and locale.  

Keep investing and moving forward!

You have pages of good tips and advice above.  You'll come to your own conclusions, and take the action needed.

Just make sure to analyze this situation to understand it and you'll know how to avoid it going forward.

Investing in real estate: think long term.

There are a few ways to accomplish this transaction: a real estate broker acting as a transaction coordinator/facilitator (not representing the buyer or seller), a real estate attorney, and/or a title company.

I would opt for a licensed broker to handle the contract of sale, and hand it over to the title (or escrow) company.  The broker might also be able to recommend some lenders that would help you with financing.

To your other question about the type of financing, it would depend on what you plan to do with the property once you have full ownership.  A second home would be financed somewhat differently than a rental property.

Advice:  speak with a broker, an attorney, and a title company.  You'll get the hang of it as your discussions proceed.  

Keep investing and moving forward!

Fortune smiled on you with your previous long-term tenant.  Protecting yourself (as landlord) from utility cost spikes when there are no separate meters is a common question.  

The answers are to price in a higher utility cost into the rent, or, bite the bullet and separate the meters.  

The only real way to protect yourself is to have the tenants pay for their own utilities.  You'll sleep better and it will increase your property value.

This is a common problem, but there are several actions we can take to curtail it:

Follow the l/t regs in your state to properly notify the tenant about any damages that will be deducted from the security.  In PA, we have 30 days to send written notice with details of damages.  Follow the same process for skipping on the last month's rent.

If no response from the tenant within their legally allowed time, file in your local l/t court.  Assuming you win your case, or they don't show in court and you get a default judgment, RECORD that judgment at the county recorder level.  That will alert other landlords that the tenant has a rental judgment.  It will also show on most credit reports. Additionally, you can send that info to your preferred collection agency.  

The recorded judgment hinders the tenant from making a major purchase (think real estate), and will ding their credit for years to come. BTW, we have received some nice checks years later from a few tenants who decided to pay off their judgment to close on their dream house.

Does this practice often result in you collecting some money? No, not often. But, as landlords, if we all do it, our tenant screening will show those red flags.

Keep investing and moving forward.

Do you have equity in the property?  Will you make a profit after all selling/closing expenses?  

Folks don't go broke taking a profit.

That said, if real estate is a long-term business for you, maybe start portioning cash flow into capx so these issues/expenses aren't as worrisome. 

Keep investing and moving forward!

A few suggestions:

Get a Job, Borrow from Parents/relatives, Get a partner for the deal, or (trigger warning: not PC)  renounce US citizenship, cross the border illegally, and get all the government money you need.