All Forum Posts by: Russ Draper

I would add, remember they are not your friends, they are your tenants.  Some will want to be buddies so that they can get different behavior, don't fall for it!  Even if they are an attractive male/female don't get involved and set the tone!

I think you are giving away the property for no reason.  If she can't get financing then she has no other option, I would have the rate HIGHER than hard money or anything else.  Why would you want to be a bank for this tenant?  Just because you got a deal doesn't mean she does!

I am not sure, but I think that if they were to confiscate it that would happen before now.  Unless the owner was selling the meth I don't think that would happen.

I have also heard you might need to gut the house if meth chemicals are in the walls.  You might not be able to get insurance until this is remedied.  I'd lower my offer if it were me.

If you can finance the entire thing yourself, you can buy in the name of the LLC (I would do that). If you need to use a bank/mortgage they will want the mortgage in your name, then the common practice is to quitclaim it into the name of the LLC.

My experience is it depends on the insurance company, some will insist on replacement coverage some will not.  I had a building that I paid under $50k for that the insurance company decided was worth $350k replacement!  I declined insurance on that one for awhile until I could find a reasonable insurance company!

I have an 10yr old LLC that I used for my cashflow rentals. I have since sold my rentals, and now I am using the money for rehabbing. I have been using private money for the flips thus far, but I was thinking it would be nicer if I could do more of them at a time and get construction/rehab loans for the flips. I know that hard money lenders don't seem to care based on my experience thus far, but I want to know how important it is that a company have a 2+ year history for mortgage or loans.

I ask because my LLC is out of state, is a sole member, and my wife is not on it yet. I wish to rename it, move it to a different state (domestication), change from single-member to S-corp tax status, and add my wife as a partner. But this is all time consuming (3-6mo) and the only purpose to do all this instead of dissolving and forming a new company is to preserve the EIN and credit history. If its not really going to help there then there is no reason to do the work.

What does BP think?  Should I just let this go and form a new company or should I try to save it and the EIN/credit?

Of course there is!  Talk to a mortgage broker.

I thought that MH's were treated as personal property like a vehicle and not like a house.  The idea being that you can just take it back with the sheriff if they don't pay and not have to go through courts.  Just like how your car can be repossessed the same with a MH.

I would think that personal property is not your responsibility, that's what renters insurance is for!

I actually DON'T invest in Boston because the ROI is too low. You can gamble on appreciation but unless you bought the building 20yrs ago it isn't worth it for cashflow rentals. Everyone is buying those MF's and turning them into condos.