All Forum Posts by: Matthew McNeil

@Ryan Weimer. I bought another SFH in Meridian in July and my CF is about the same. Boise is not a cashflowing market, but I'm happy with the appreciation.

I'd suggest you reach out to @David Clinton III. He's well connected in that area.

Congrats. And an additional congrats for getting $1600 per month rent.  Curious; what's your CF?

@Nathan Gesner and @Michael Randle

Thanks for your feedback.  I went back to re-read my PM Agreement and the wording related is; 

"…and Public liability insurance naming AGENT, xyz Property Management, LLC as co-insured and additional insured."

 Hmmm... Interesting!  

Thanks for that Leah.  I always try to get additional perspective and I appreciate you sharing that.  Makes sense to me.  My assets are in Idaho and I'm not sure if this wording is a requirement in the state.  I doubt it.  However, I assume the PM is obligated to carry their own insurance.  

That was my initial thought.  Oddly, I've used this PM for 10 years and hadn't seen this wording in previous agreements.  They revised their contract and upon careful inspection I read the "Additionally Insured" wording requirements.  That was new to me, and my insurer refused to accommodate the request. 

Thanks Guy.  This is the actual wording in the PM contract;

OWNER agrees to indemnify, defend and hold AGENT harmless from any and all claims, investigation, lawsuits, actions, causes of actions, demands, rights, damages, costs, loss, expense and compensation whatsoever, presently existing or which may hereinafter accrue on account of or in any way grow out of any and all known and unknown, foreseen and unforeseen injury or damage, loss cost and expense, and the consequences thereof, resulting or to result from the condition of the PREMISES, conduct or inaction which arose or might arise on PREMISES, repairs and maintenance conducted on the PREMISES, and the management and leasing, whether occurring during the term of this AGREEMENT or after its termination. It is understood that AGENT is fully indemnified and held harmless from any claim or liability for damage to property, injuries, death, of any person caused by any condition on the PREMISES, conduct or inaction of third persons that arose on the PREMISES, including repairs and maintenance completed during this AGREEMENT, prior to this AGREEMENT or arising thereafter.

I'm the primary insured, but my PM wants to be included on Liability policy.  Has anyone heard of this?

My insurer refused to accommodate the request saying they've had problems with PMs named in their policies, although they didn't elaborate.  

There's a lot more to Asset Protection than having your leases in the name of the LLC.

You can Quitclaim your property to the LLC which involves transferring the Title, but that's only part of the larger picture. First of all, there's the issue of the possibility of the lender calling the loan if they learn you've violated the transfer clause, which you will avoid if your name (and assuming your wife) on the loan is the same as the member(s) of the LLC; you and your wife. Also, an LLC needs to be managed appropriately in order to keep from "piercing the veil" which may involve you being held personally liable by a court. Rather than detailing what's already been discussed extensively here on BP, I suggest you research Asset Protection using the search option, but I'll address the Title issue.

If you choose to Quitclaim then you’ll want to check with the Title Company regarding the Title insurance to see if the coverage remains intact if the asset is transferred. Generally, the coverage of the policy will state; “The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.”

Each asset in my portfolio is in its separate LLC. Some states offer Series LLC but my state doesn't. Each asset has been QC to the respective LLC (Title confirmed insurance remains) and each has its separate bank account, lease contract, files separate taxes, insurance is in the LLC name with me as additionally insured, county taxes are in the name of the LLC, etc. Nothing is in my name and I never mix personal funds with the LLC.