All Forum Posts by: Richard C.

 No.  Absolutely not.  The purposes for which you can deduct from a tenant's security deposit are strictly limited by state law or administrative rule.  I am not aware of any state where what you are describing would fly.  You would be in a world of hurt if you tried such a thing here.  I strongly suggest you consult with a local attorney about what is and is not allowed in your state.

Besides, I very much doubt these tenants are violating their lease.  Usually a lease will provide for landlord access with notice.  Many times, it will specifically allow for showing within the last month.  But I have never seen one that requires a tenant to vacate the premises themselves, to clean up, or to remove their pets.

I like Bill Gulley's formulation:  Real Estate Operator.

The real reason you are having trouble with what to call it is that you cannot call it what it actually is.

There is a name for the process of facilitating transactions for profit, buying and selling options and contractual rights, etc.  For all of the things that "wholesalers" do.  And that word is "brokering."

But of course, using that word would be quite problematic for the vast majority of wholesalers...

I would be very surprised if you lease gave you the right to force the tenant to vacate for showings.  They probably do have to allow you access.  They do not have to vacate themselves, clean up, or move their dog.

 On what possible grounds?  

Be aware that in some state's, improper charges against a tenant's security deposit can result in treble damages.

 It depreciates, but not like carpet.  Like a roof; over 27.5 years.

You charge for the value of what was damaged, not just the cost of the repair.  So if the surface had a year of useful life left when they moved in, you charge nothing.  If it had two years of life left and you now have to replace it a year early, you charge accordingly.

I would probably charge some fairly nominal amount, in the circumstances you describe.

But I wouldn't be in that circumstance, and here is why.  I wouldn't rent it with a worn finish.  The purpose of a finish on a hardwood floor is not only, or even mostly, to look good.  It is to protect the wood.  If you rent it with worn finish, you are setting yourself up for much greater expenses down the line.  It is much cheaper to do a "screen and recoat" of an existing sound surface that it is to actually refinish the floors.  

Is the question about holding real estate in a business name, as your post says, or financing it in a business entity, as the thread title says?  Because they are not the same thing.

The vast, overwhelming majority of single member LLCs provide no meaningful asset protection. Virtually everyone who owns one fails to sufficient separate themselves from management to have the theoretical protections of the LLC actually cover them. That is my problem with the LLC route; not that they are a bad idea, but that they have been "sold" to investors as a magic bullet when they most certainly are not.

Financing in an LLC prevents you from participating in the majority of available residential financing. You will need to be in the commercial loan space, with higher interest, shorter terms and higher down payments.

Ummm...yeah....that's not why.

In Glengary Glenn Ross? Obviously the salesmen are pathetic right? But so is Alex Baldwin's character. 

 Envolves?

You might be very surprised... 

I have met people I would not hesitate to describe with the word "thug" who had some serious skills with computers, and others who had a very sophisticated understanding of the financial system.  And one person affiliated with a notorious OMG who knows a whole lot about real estate!

I agree withe everything else you posted though, especially the need to set up a good business relationship from the start by not lying to people.

 These lists depend entirely on your insurance company.  Mine, somewhat to my surprise, does not restrict German Shepherds.