All Forum Posts by: Jeff Rabinowitz

The judges in the cities where I have rentals have always upheld the late fees. They are clearly specified in the lease.

I rarely have a month where I don't get late fees. I put all of my late fees into my "liquid fund". The funds are used to purchase scotch. My tenants have paid for some very nice bottles. I like late fees.

Welcome to BP. You don't need an LLC to buy investment property. This topic comes up quite often in the forums. Search the site and read previous posts. You haven't made an investment yet but you want to set up an LLC that may not meet your needs if you start buying property. You won't even know if you like real estate until you get started. Concentrate on the first deal, then the second. Then, if you decide to set up an LLC, at least you will be able to establish one that is appropriate for your business.

Welcome to BP. You don't need an LLC to buy investment property. This topic comes up quite often in the forums. Search the site and read previous posts. You haven't made an investment yet but you want to set up a complicated business structure that may not meet your needs if you start buying property. You won't even know if you like real estate until you get started. Concentrate on the first deal, then the second. Then, if you decide to set up an LLC, at least you will be able to establish one that is appropriate for your business.

If your first mortgage is from a bank this is not possible. They want the down payment funds to come from you so they know you will feel some pain if you walk away. If you cover the 20% with a personal loan and do not inform the bank where the funds came from you may risk a fraud prosecution if you are unable to keep up with the payments.

In a dozen years and with a dozen properties I have never had a tenant lock themselves out. I do have a clause in my lease that there would be a $100 fee if they do so. If I ever get a call for a lockout all I would do is give the tenant the number for my locksmith. I would never run over and unlock the house for them.

It is always a trade off when you have a needy tenant but one who is renting a lesser unit. You must decide what you will tolerate. If you decide to keep this tenant I would suggest you tighten up your lease (address some of the issues that have occurred) and have them sign a new one. You might also raise the rent significantly. You will learn where the market is and, if they accept the increase, you will be getting a little compensation for the drama. If they don't accept the increase--hopefully, you'll be able to replace them with an easier tenant.

ETC came through on this transaction. They processed the transaction without asking for any additional information and without my needing to call. I believe this is two in a row. I hope this means they have improved their process.

@Anthony Hag, welcome to BP. You have found a large store of blogs, questions and resources. Explore it. When you find a topic that resonates for you explore it more deeply. Only you can possibly know when you find an investment vehicle that is right for you.

@Caleb Kheradmand, welcome to BP. You should invest where you find profitable deals that interest you. There are advantages to investing locally but many invest in other markets. If you choose to invest in a market distant from your own it may be very advisable to find a trustworthy local partner or property manager who can help you monitor your investments, at least until you become expert in that market yourself.

@Sal DeJulio, welcome to BP. Your profile states that you are looking to build a "scalable real estate empire". Are you willing to risk going forward without having a solid answer to this question? You do realize that property managers are often sued don't you? If you are supposed to have a licensed party on staff and do not how many lawsuits do you think you will win? Contact a local real estate attorney and start your business correctly before you find you have built your empire on sand.