All Forum Posts by: Matt Hummer

Why is this no good? LLCs are a separate legal entity. It might as well be a different person. Why does it matter if its his LLC or someone else's?

I find that when I want something from someone (money for houses), if I make it as easy as possible for them to say yes, they generally do.  That means getting all my numbers in line, making sure I have answers to the commonly asked questions, brainstorming other less-commonly asked questions and finding answers for those, and generally having my stuff together.  General rule of thumb: When dealing with anyone in business, you should make it your goal to be more professional than they are.  You might not always succeed but it's a solid starting place.

If you can't thoroughly explain your answer to the question "Who are my customers and why will they buy from ME?", it means your model needs work.  In your position, your customers are basically every single person you deal with from investors to banks to the seller and the prospective buyers...You're selling something to everyone, whether it be a reason to lend you money, a reason to accept your offer, or even the property itself (in the case of the buyer).

Solid learning experience: Have your stuff together before you put yourself out there because people are serious with their money and they're going to tear you up if they think you're any less so.

They spelled "capitalization" wrong.

If you sold your property for 180,000 tomorrow you would actually lose.  Assuming a sale price of 180,000, less 3,500 for taxes and insurance on the year you've lived there, 10800 for agent commissions, 400 for appraisal, 3500 in seller concessions (assumed), approximately 2500 in closing expense (No idea of your market), and considering your 174,250 purchase cost, you're about $14,950 in the hole today, not including any principal you've paid on the loan in the last year.

Your purchase price is the total cost you expensed to acquire the property including the contract price, closing costs, taxes, etc.  It's your all-in cost.

A monthly disposable income of 5,200 leaves 25% for the rent at 1,300, or about 75k yearly before taxes.

Your cash flow with a 30-year mortgage assumes 100% occupancy.  I plan for at least a month of vacancy for every new tenant.  If your net positive cash flow is 160/month without vacancy, with a month of vacancy every year your monthly cash flow drops to about $82.  You're about one water heater replacement away from negative cash flows.

An investment with negative cash flow isn't an investment.  Appreciation can never be counted upon, borrowing rates will likely rise, and we haven't considered inflation.  I think you bought yourself a primary occupancy here!

@Russell Brazil I would argue your last statement...It might be obvious to you, but it wouldn't be obvious to the courts, which is the only opinion that really matters.  Consider a case wherein the asset manager initially rejects the offeror's original offer, then discovers some other material fact about the property, and counter's the offeror with a lower figure.  Would this not be reasonable?  I'm just playing devil's advocate here...Inference has no legal ground, and I think the OP should consult a lawyer.

This is the basics, but a valid legal contract requires four things: Mutual assent, consideration, capacity, and legality.  A valid offer requires that the offeror make a definite expression of the desire to enter a contract in terms that are clear and unambiguous and that are communicated to the offeree.  An acceptance occurs when, without changing the essential terms of the offer, the offeree communicates an acceptance to the offeror.  Once the offer has been accepted, mutual assent exists.  (Thanks, Business Law with UCC applications, 13th Edition ;)) I think this portion of the law is what you're most concerned with as I'm of the opinion that your contract offers consideration (a house for money), you're legally permitted to assume that the other party to the contract possesses the capacity required, and I'm just assuming that there is nothing illegal about the exchange.

Assuming your offer was in writing (real property contracts require writing), and you appointed your agent in writing, and your agent made the offer on your behalf (or you made the offer directly in writing), AND your contract spelled out clear and reasonably definite terms, AND it was signed, witnessed, and delivered, I would say you've got pretty good grounds to pursue the contract.  I would remind them of their legally binding contract and consult a real property lawyer.  If their offer was $3,500 below yours then that's significant and would more than pay for the hundred dollars it might take for a consultation!

Dare I say, your long story WAS actually a "short" story!




Goodbye property, hellloo comedy.

No worries!  I happen to be a pilot so I'm pretty familliar with smaller airports...If you have any other questions feel free to reach out.

As a follow-up, typically the airport is owned by someone and businesses called FBOs (Fixed Base Operators) rent space on the land to run things like flight schools, airplane rental companies, and repair/inspection shops.  If you're looking for the owner of the land I would start by calling one of the FBOs on the airport...The local flight school is probably the best place to start.

Airports can be privately owned, or owned by a municipality.  If the airport is privately owned then your next step should be to contact the owner.  If the airport is municipality-owned then coordination with the town is in order...They might not know what they have.