All Forum Posts by: Max T.

I say, "nerp, sorry!"

@Nathan G.

I’m licensed and do it part time. I agree that I don’t make much money at it. But I do close a couple each year (mostly my own buys). And I get mls access, can schedule my own showings, and can write my own lowball offers. To me it’s worth it and all the expenses are tax write offs. I probably do a bit better than breaking even 😅

I’m with @Jim K. I refinish /patch the existing wood whenever possible. Because it’s just labor - I already have the wood! And it looks great and can be refinished every few tenants. Tile in kitchens and baths. With that being said I have occasionally used vinyl plank when the wood floor was too patched up already and/or the existing subfloor was not good enough for tile and I wasn’t willing to do work required to tile properly. But even in those instances I am planning to do it right at a later date.

@Champ Leong

Unlicensed contractors for major work, additions, full rehabs. Very risky.

Unlicensed sub for small repairs here and there…. Eh

They each brough 25% of the down, 10 years ago. What should I be sure to include in the buyout agreement!?! They are also open to selling it but I want to keep it!

Here is my initial draft:

Buyout Agreement


I. Partners
a. Max 50%
b. Joey 25%
c. Nathan 25%

II. Asset
a. XXXX XXXXX Avenue Philadelphia PA 19125

III. Buyout Price
a. Max will pay a buyout price to Joey and Nathan.
b. Buyout Price will be determined by the asset’s appraised value during the mortgage refinance process. Any partner can dispute the appraised value and order an appraisal at their expense.
c. Appraised value will be used as an Estimated Sale Price.
d. Estimated sale date will be equal to loan refinance closing date.
e. Estimated sale price will be adjusted for normal transaction costs, including but not limited to: 6% real estate agent commissions and ½ Philadelphia Transfer Tax. The remaining amount is the Estimated Seller Proceeds.
f. Estimated Seller Proceeds will determine the BUYOUT PRICE. Joey and Nathan each agree to accept 25% of Estimated Seller Proceeds as their Buyout Price.

IV. Partners will transfer title to Max as sole owner.

V. Debt Restructuring

a. Max will refinance mortgage on 2503 Frankford Avenue in his name only. Existing mortgage will be paid off leaving Joey and Nathan no debt associated with XXXX XXXXXX Avenue.
b. The cash out proceeds from the refinance will be used in full as the BUYOUT PRICE for partners Joey and Nathan. None of the cash out refinance proceeds will go to Max.

VI. XXXX Rentals, LLC
a. Tenants of XXXXX have pre-paid rents and security deposits held by this entity. Those amounts will be transferred to Max.
b. All remaining assets held by this entity will be split among partners according to their percentage of ownership.
c. All accounts will be liquidated, distributed to partners according to their ownership percentage, and closed.
d. Partners will continue to cooperate after closing to dissolve XXXXX Rentals, LLC as a corporate entity.

@Jami Morash

Tenant should be required to crate the dog if they are not able to control it when the repair person is there.

@Jami Morash

Dangerous dog sounds like a liability and likely a lease violation on some level. I’d work on the most painless way to replace the tenancy.

@Nadir M.

Well I think there is more risk when you’re doing it at the peak of a market cycle. You risk being underwater if values drop after your refi. Shouldn’t be a problem if your rents keep coming in, but certainly limits your options.

@Marlia Stone

What block is it on?

@Jim K.

I’m a good people person. **** happens. Nobody’s fault. I would get the debris cleaned up ASAP myself before they move in but I can’t take off work to fix the ceiling. But they will see me on site, see me coordinating the subcontractor, etc.. it is the best I can do in a bad situation.