All Forum Posts by: Rob Wilcox

Hello BP, My business partner and I are funding a short-term private lending deal. I’m using a personal line of credit to fund the transaction. I transferred from this line of credit account to our business account and then wired from our business account to the closing attorney’s escrow account. All of this seems in order. The question we have - can we bill the interest back to our LLC? This personal line of credit is at a cost of 5.2% that I currently have to pay on my own. Is there a way that I can charge this back to our LLC legally? Thank you in advance! Robert W.

@Thomas D. Interesting, though thIs does cannot be legal. The idea of artificially inflating prices, to increase leverage, even if covered by cash flow, seems very risky.

@Jerrod Price So...this is done and thought the folks here might be interested to see how it played out. We did the exit walk-thru and the walls were worse than realized. They cleaned them with bleach and they clearly needed to be re-painted. We made notes and took pictures. I shared that we would get an estimate and circle back with the cost to be deducted from the security deposit. I gave her a copy of the exit walk thru form. Later that day, I receive a phone call from her husband. Let’s just say he was very upset and immediately shared / demanded all the money back. It was quite the experience. It quickly became the goal to just get off the phone and think through options. BTW - The walls absolutely needed to be re painted. We also since paid a cleaning company $150 for a hard cleaning. I decide to call them back and take it head on, fIrst though by establishing the ground rules of respect and no yelling. The tenants offered $300 to be withheld from the deposit They used this as an InItIal offer to negotIate After more back and forth, I simply accepted their offer and chalked it up to experience. We ended up painting it ourselves and after about $250 in materials and two days worth of work, we’ve turned the unit and have the new tenants in the house. Thanks to everyone on this thread for their advice and help. Does have have a best practice for the reduction of the security deposit to the tenant? If we painted it ourselves would we bill for labor and provide a receipt? Or, should we just sign the exit walk thru agreement with the reduction of $300 for painting / materials?

@Ben Payano Seems like your personal financial situation, timeline and goals are important factors of this decision. If you are early-to-middle-aged, the $800 is manageable, keep it. You are in San Diego. If you are older and closer to retirement, probably sell, reinvest what you want into cash flowing properties. If you are financially independent, this probably doesn’t matter much either way.

@Marcia Maynard Thank you! Done!

@Andrew Boettcher This seems like a smart and economical solution. Thank you!

@Wesley W. Awesome advice! Really good. Thanks so much!

Hello BP! We are turning over our first tenant. Do we need to change the locks / re-key the unit before giving the keys to the new tenant? If not required by law do any of you do thIs? Reading through the Georgia handbook regarding tenant / landlord law there isn’t anything specific to this question. Thank you in advance for your insights!

@Lisa Kovac We experienced the same problem with State Farm. We eventually went with American Modern in Cincinnati and they’ve been great. Do lots of work in the rental space.

@Walt Dockery Thanks to everyone for their help. All worked out. Money orders done. Background check, credit check, income verification done. Lease signed. Thanks so much!