All Forum Posts by: Mark Sandlin

Thanks for responses! Yes to @Matthew Masoud@Matthew Masoud@Matthew Masoud the lease says "Lessee shall not sublet the Premises or any part thereof, nor assign this lease, without obtaining Lessor's prior written permission to sublet or assign. Lessor shall not unreasonably withhold permission and will
accept a reasonable sublease as provided by ordinance." 

If we went along with it, would definitely make a provision for having no liability for his stuff; he was the one who suggested being fine with that. I had not however considered the possibility of him just not coming back, or wanting out, as he had not expressed that. But I guess it's a likely scenario if the grass is greener there. 

@Nathan Gesner Thanks for the feedback about lease term, hadn't considered that. What kind of termination fee is standard for you? 

I guess I was interested to know if anyone has had success placing mid-term tenants in through FF or airbnb, but I guess that's a pretty tight squeeze to bank on a perfect match without overlap. I am leaning toward just saying no, or letting him advertise to get a taste of its impracticality (pointing toward our paid application process and screening). Thanks for helpful replies! 

Current tenant wants to take on a travel nursing assignment in FL for ~3 months in December. He's been in for about 4 months on an 18mo lease. He is wanting to leave all his furniture in the house and is asking if someone can stay there while he's gone to mitigate his costs. I see potential risks with his stuff breaking / being stolen if we found a suitable mid-term renter, if we even can (short term airbnb laws do not allow under 30 day stays in the city unless permitted). Has anyone dealt with this request or foresee other risks that might make "no" a better answer? If so, is there a good way to word this? Trying to consider this with an open mind but it seems sticky. 

Andy feel free to connect when you get here! We have similar strategies and live in west Knox and love it here. My biz partner @John Sandlin is also based in NYC as well! 

I'm using a HML for a potential purchase; the brrrr calculation is assuming the rehab is part of the cash needed at closing and is affecting my total cash needed at purchase on the report. Is there a way to show the rehab is financed as well with this calculator or does it not matter? Maybe I'm just doing it wrong. Thanks!

I'll also double this as a new member post (not my first) but would love to connect w any Knoville TN re investors!

Also looking into SFH in Waco. Would love to get plugged into some agents who are familiar with good BRRR properties there.

First post on BP!!

I am working on a JV agreement to get started. Planning to have a capital partner provide the bulk of the investment capital and a services partner would be responsible for locating, overseeing rehab, property management, etc.

The cleanest way to do this would be both partners to form a legal entity (LLC), have the entity create a bank account, get financing, and hold title. However it seems there are many more financing options available if the investment capital partner covers the financing and holds title in his own name. So we may go the route of having a JV agreement, holding title in the name of the capital partner, having a shared bank account, and an umbrella policy.

Questions:

1. Putting aside liability protection, so long as the property is specified in the JV agreement, does it matter for tax purposes if the title is held by either partner, rather than the LLC? My understanding is that a "tax partnership" is formed by a joint venture regardless of whether a business entity is formed. So then to for capital partner and services partner to split profits 50/50 with respect to this property should be ok, regardless of who holds title? Reference Podell v. Commissioner. 

2. Based on above, we could create an LLC or LP to have a EIN and cleaner tax returns. We could also document an assignment of interest in the property to the LLC for peace of mind? Understanding again this would accomplish nothing in terms of liability protection, but from simplicity of bookkeeping, tax reporting, etc. It would seem then that both partners would be able to deduct their share of losses, etc.

Understanding that nobody here will give tax advice, what have you seen in practice?  Any other suggestions?

Especially interested in hearing from the experts on this thread https://www.biggerpockets.com/...

@Nicholas Aiola, @Natalie Kolodij , @Steven Hamilton II , @Linda Weygant , @Lance Lvovsky , @Stanley Bronstein 
@Michael Plaks, @Margaret Feit