All Forum Posts by: Daria B.

I've got a guy that has done a great job painting and flooring for me in two days, 2 rooms 13x13. Quality work. PM me and I'll give you his contact info.

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Originally posted by @Account Closed:

Hi everyone,

I am looking at some turnkey providers and would like to know about you guys' personal experiences. They do have a big inventory and they do provide a vast variety of properties. They do charge markups on pretty much anything they do(in their agreement, which is good and bad). Good in terms that they tell you beforehand that they will charge such and such on this type of work. Bad in terms that it might eat a chunk of the returns.

I would love to know that how many properties you bought? How was the overall experience? What is the level of their rehabs? How well is their PM? How well do they retain the tenants and how long did they take for your property(ies) to rent out? Would you buy more from them? Would you recommend them?

(If you don't feel like expressing yourself in the public, feel free to send me a DM)

Looking forward to some very helpful responses.

Thanks in advance and happy investing!

What is involved with the Lease Renewal Fee? If a tenant is already placed, what is being charged? For them to sign the renewal?

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Here is a link I found searching BP:

https://www.biggerpockets.com/forums/50/topics/316...

One person in that thread said they are not lenders like getting a mortgage, but really it's a business credit card.

Maybe someone from BP can elude to why Oracle has BP logo on their site. @Mindy Jensen @Brandon Turner

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Originally posted by @Haseeb Awan:

Hello,

I purchased 6 notes this summer however after sending 1st mail which resulted in couple of payments, I've not been able to focus on it due to my travels and other commitments. I am looking for some one who want to work on getting them back on track and manage them. I understand who charge you the fee /month but I imagine it's fixed fee vs performance. Is there an individual / firm who can work on performance basis so to help me while I can focus on another project I am working on.

Shouldn't you be using a servicer to service your notes?

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Originally posted by @Account Closed:

Looking in to rolling over my ROTH IRA into a SDIRA to invest in my first mortgage note. I am very interested in a particular broker, but wanted to ask a question here to do further due diligence as I am new to note investing.

Question: The broker that I am interested in normally takes second position behind the investors first position (me) holding. Should I be concerned about this?

An example given is on a $100k SFR with a 15% down payment, I come in at first position at 75% and the broker takes second position at 10%

At first glance, this seems like a positive since the broker will have skin in the game, but just wanted to ask you all what you thought.

I invest with a JV versed in 1sts. We don't do 2nds as I know many others do and seem to navigate those waters pretty well. Our investing is pretty cut and dry to that of what you describe and I'd be interested to find out how you work this deal.

Using the term "broker" I take it that this is not a JV whereby the partner is purchasing the Note and you are partnering with that person to fund. So "broker" as in you are buying a 2nd from this person and will take all the responsibility of finding a servicer for the Note, or remain with the one that currently has it?

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Originally posted by @Andrew B.:

tenants are responsible for utilities throughout lease term. at the minimum safe temperatures must be maintained at all times, which may not be a problem in florida. if you are planning on going in and doing some turnaround work, you can switch utilities over to your name for the time being, as long as you know tenant has vacated apartment. I believe you should formally take possession of apartment before doing so.

check your local landlord tenant laws for accuracy before doing anything

I've never had a tenant vacate early.

I didn't find anything specific to this in the statutes and I know my lease doesn't have a provision.

It was a "ah ha" moment and I thought it would be good to hear from BP as there are innumerable landlords with different guidelines.

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hello all

I'm not really sure of this because this is the first time that I have experienced this situation. I have a tenant that is actually a good tenant and is moving out prior to the lease ending.

They realize they are obligated for the remainder of the rent monies so that's not the situation.

The question I have is in regards to utilities.

Technically the tenant was supposed to move out on 24 of October but is leaving today. I don't think they should be responsible for utilities up until the 24th, which is really when the lease expires, because they are not their to consume. Technically, should they be responsible for that time period(?), I don't think so but I wanted to ask others who have been in this situation what was done. Did you when something in the lease to cover this?

There are no provisions in the lease that warrant this - may have my answer in that statement. :-)

Thank you

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Originally posted by @Aksel A.:

Thanks @Daria B.

My OA has the following sections:

1. Preliminary Provisions

2. Membership Provisions

3. Tax & Financial Provisions

4. Capital Provisions

5. Membership Withdrawal & Transfer Provisions

6. Dissolution Provisions

7. General Provisions

8. Signature Of Members

From your response, it seems that I should introduce a new brief Management Provisions section. Is there a such standard provision template I can use for my closing? Again, this is the simplest possible incorporation LLC layout, with 1 owner-member-operator me and not subject to change anytime soon.

I don't think there is a standard.

Since you are the only one you just need to add something, perhaps under Membership Provisions, that states you are authorized to sign for binding the LLC.

I researched a lot on this subject and had an example from a JV partner from something he used with one of his business ventures. Once the group decided what we wanted to do it became clear what to include. I also read through the Florida Statutes, which is where we all live and used that as a guide as they have specifics on operating LLCs in the state.

This is what we have in ours and we tried to keep it very short. Our investment ventures are with a JV and we have 10 members with one as the Managing Member and what I added as an Assistant Manager for the purpose of just signing the JV agreements in the absence of the Managing Member. Ours may be a little more elaborate. Each Article spells out the specifics and we focused on II, III, IV, V, VI, IX as they were the most important for us.

Article I - Company Formation

Article II - Management (covers who/what/when/where/why)

Article III - Members

Article IV - Voting Rights & Meetings of Members

Article V - Profits, Losses, and Accountings

Article VI - Members Interest

Article VII - Default

Article VIII - Dissolution and Termination

Article IX - Liquidation

Article X - Amendment of this Agreement

Article XI - Miscellaneous

We have a signature page(s) with Titles (Members just say Member while the Managing Member says Member Manager).

We have 3 exhibits that are applicable to our set up.

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Originally posted by @Aksel A.:

Greetings,

I got the following feedback from underwriting:

DOCUMENTS DUE AT CLOSING AND FOR SIGNING:

- *Amended Operating Agreement to reflect Member-Managed signature block is needed. There has to be an area regarding the authority for you to give you the right to enter into a loan

My operating agreement is quite standard, so I am not sure what exact verbiage the above requires. Is that a 1 line quick sentence, or a full broken down chapter to be added in the operating agreement (I guess in the General Provisions section)?

I recently changed our LLC agreement that is Member-Managed to allow for a second ("Assistant Manager") signature that solely has signing authority for our JV deals in the absence of the Manager. The titles are noted in the signature block.

The above seems to indicate they just need a signature block that has the title and a clause that would indicate the rights and powers of the Manager.

Our OA has a Management section specifically spelling out the duties, rights and powers, obligations, who can sign, etc.

Hope this helps....

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I don't bank on appreciation - there may be areas out there that have shown steady increase and have sold for great than, but over all I don't think it's a good thing to count on.

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All Forum Posts by: Daria B.

Daria B. has started 149 posts and replied 1905 times.

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Post: Mortgage Note Broker taking 2nd position lien

Post: Tenant move out and utilities

Post: Tenant move out and utilities

Post: Operating Agreement - Right To Enter Loan

Post: Operating Agreement - Right To Enter Loan

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