All Forum Posts by: William Coet

Hello, 

The current property owner has a mortgage with a regional bank.  They are willing to sell with owner financing.

Will a bank ever allow this to happen if the bank doesn't get paid off at time of sale?  

Thank you!

Quote from @Keeley Painter:

I did it as well and would def do again. Converted my 425 sqft workshop at the back of my detached garage to a studio apartment for $60K. Pulled some of the money out when I refi'ed last September at 2.75% rate. My rental brings in $1800/month (utilities included as they aren't separate - yet). My mortgage (PITI) is $1592/month. I'm basically living for free while continuing to build equity! Loss of privacy is minimal. I put up a fence section in front of the ADU front door and window that looks out into my yard which helped. Originally was renting to travelling nurses then tried AirBnb for one holiday weekend, but recently signed a 1 year lease which is way less work and hassle.

 you are getting 1800 for 425 sq.ft adu?

Quote from @John Underwood:

Make an offer now. The court can approve a sale and the money be put into the estate before probate is closed.

Get an option to buy the property after the estate is closed.

Get under contract to buy when the estate is closed.

Thanks John,
The terms of how the estate will be distributed have not yet been agreed to by the family members.  That is what the hold-up is.  I'm still wondering if there is a way they can agree to a sale early on.
Thanks

Waiting for an estate to settle and looking for ideas on how to position so that an estate would be more likely to choose an offer in a multiple offer situation.

Some ideas:

-Have all title work done early so it can be easily and quickly updated and then approved by attorney.

-Place approximately 75-80% of the purchase price in escrow with the estates attorney so that they know the cash will be there.

Any ideas on these suggestions or new ideas are welcome.

Thank you!

Quote from @Chris Seveney:

@William Coet

Like most answers it depends.

If you aee buying commercial property yes they should not be in your personal name. Some single family rentals - absolutely can be in your personal name with a good insurance policy and a good property manager.

It's like the attorneys who tell you to never do a JV deal and create syndication docs for $20k….

 Thanks,

Where do you suppose a multi-unit student rental falls into this picture?

This is the  attorney and the title of the youtube video where he recommends LLCs.  If anybody is familiar with him and this video it would be good to hear opinions.  Thank you

Toby Mathis Esq. Tax & Asset Protection 

"Protect Your Rental Properties with an LLC"

Hello,

There are some attorneys doing videos suggesting each and every rental property be in an LLC and they recommend Wyoming LLCs. One refers to a woman who lost all of her rental properties and personal home because of a liability lawsuit.

-Is this a legitimate claim or scare tactic? Does there have to a situation where the landlord does not have insurance, or a serious case of neglect or reckless behavior for properties to be taken? 

-Can a person who owns multiple rental properties really be sued for all of their property including personal home?

-Is a good insurance policy with sufficient coverage enough? 
(how much coverage is sufficient?)

-Are LLCs necessary?  If so, is it necessary to use a state like Wyoming?

Thanks!

@Paul Vail @Bill B.  And then there's this annoying chart which may need to be opened in new tab or window because of it's small size. It would be nice to think that one could buy equities and not worry about them, but this is what keeps me reluctant

Quote from @Greg Scott:

8%  LOL  One can fall out of bed and do better.

And how sir?

Hello,

Which one wins on a 30 year horizon?

When looking at a long term real estate investment (approximately a 30 year rental property hold) that returns 8% annually compared to the stock market that returns an average 8%, are there tax advantages for the real estate investment?

-For Stocks, I know that there are IRA structures that have tax advantages

-For Real Estate, I know there are tax advantages like mortgage write-offs and depreciation write offs