All Forum Posts by: Fred Ramos

I just got rid of tenant two weeks ago using this method. I waited until they were 7 days late and exercised a clause in my lease to have them vacate the property. at first I got a hard time but I mentioned that if they were out within a week and if the house was left in the same condition they received it that I would only deduct the due rent (12 days) from their deposit and refund the rest. It worked like a charm. house was spotless and rented it this weekend. Saved me all the attorney and fees and probably repairs. I will definitely do it again. What low income folk need is money, I don't see it as a tremendous loss to offer them part of their deposit to leave the place in good shape and get out. I lost 1 weeks worth of rent plus a little paint. good to go for another year now.

Currently my wife and I are considering establishing some type of business entity. One of our options would also be to form a living trust but we are not educated as to the type of liability protection a trust would provide if any. basically, what we are looking for is a way to protect what little we have in case of lawsuit. any ideas/suggestions you all may have would be appreciated.

My wife and I own a few properties and would love nothing more than to establish an entity to protect ourselves and our assets. our problem so far has been that since our properties are all mortgaged, we would be afraid to move them into an LLC or any other type pf entity for fear of the due on sale clause. do any of you have any experience or advice regarding this?
Thanks for your input!

Thank you all! your points and advice is well taken. Jon, the main thing that I'm starting to notice is exactly what you stated. this is an on the phone type business. I spend plenty of time on the phone daily just trying to keep everything running smoothly with just a few properties. I can just imagine what it will be like once we reach our goal. I will definitely be getting on the horn and trying to find an American Family policy.
Christian, we would love nothing more than to establish an entity. our problem so far has been that since our properties are all mortgaged, we would be afraid to move them into an LLC for fear of the due on sale clause.
we just don't quite understand how people do this whose properties are not free and clear. As for an S corp or any other type of entity, we just don't understand enough to jump in. Trust me, we are definitely feeling panicky as we are growing and don't want to lose everything we've worked so hard to acquire. any further suggestions you all may have would be greatly appreciated. thank you all for your time and patience.

Well, I've searched all over the internet and cannot find a business owners policy that would be made out to an individual. unfortunately and due to not having a heart to heart with my new accountant, I have not created any type of entity as of yet. I have found quite a few landlord policies though. From what I've understood so far though is that landlords insurance will be more costly. My main drive behind all this is to try and lower our expenses (More cash flow!). We (Wife and I) are still fairly new at this and trying to figure out a way to possibly grow a little quicker.
Thanks again!

Thank you gentlemen for your input. Currently, I have separate policies for each house. we've been upfront with our insurance people about the fact they are rentals and have not had a problem so far. Anyway, We also do not have an LLC or any other business entity (just alot of liability coverage). with that, would we still qualify for a Business Owners plan?
Tim, I guess we can both learn from this post :)

Here's a question for all you insurance agents and landlords. I recently heard that I may be able to place all (4) of our rental properties under one insurance policy and that it would probably lower our overhead. I've searched all over but have not come up with anything. Are any of you using a homeowners insurance of this type? and if so, what is it called and who offers it?
your responses are greatly appreciated.

Sorry to hear about your lost opportunity. it figures there were other parties interested. don't be let down as this is usually the case on a good listed property. anyway, what I've found so far is that the properties (with potential) never make it to the MLS. they are usually scooped up by either listing realtor or someone in their office or family. what ends up on the MLS is usually the scraps. not to say that everything that does get listed is bad though because I myself have purchased a few listed properties. I know some people frown on using realtors but I suggest getting to know some of them in your area. just plant a bug in their ear but don't make yourself sound like a super investor (they'll forget about you quickly that way) let them know what you are in the market for and give them an occasional call. just make sure you'll be ready to play when they do call. Be patient. sooner or later it will all work out.
best of luck to you.

my 2 cents..... Fees are extremely high. This is what I've found with most brokers. I suggest going straight to a bank. also, why pay PMI?, there are programs out there that will finance 90% (still) and you pay no PMI...you will pay a .25 point more though. I ran the numbers on this deal and appears that minimal rental (to break even) would be roughly $780 monthly. hopefully you've already figured that you can collect more than this.

Good Luck!

Cash......purchased 5 units in 2 years....I'm tapped out!!!