All Forum Posts by: Ryan Fox

@Charles Tench- Were you ever able to get a loan against the manufactured home?  Looking to do the same strategy myself.

Nice work!  Did the buyer of the lot with the manufactured home on it pay cash, or were they able to finance?

Also, it may be hard to anticipate whether the trustee will hold on to your assets as real estate or sell it to invest in another asset class.  The trustee has to take into account the needs of all the beneficiaries, as well as the cost of managing the real estate vis a vis stocks / bonds and other asset classes.

Consult your estate planning attorney about all of this (and the prior post) as I am not licensed in your state.

The thing about trustees is they change their fees over time.  It may be hard to anticipate now what their fees will be like at the time both you and your wife pass away.  One way to work around this is to have a provision in your trust that allows for the trustee to be changed if necessary.  

@Jordan Becker- I own rental properties out of state with PM management.  The way I look at this is more from a common sense point of view.  If one of my PM's is going to take intentional action without my consent that is going to cause a tenant or someone else to sue the PM or myself, I wish the PM good luck in arguing I should indemnify them.  It can't possibly be my fault if the PM intentionally does something illegal.  If they were negligent...that might be a different story.  

Truth be told, you're never going to find a contract from a PM that totally benefits you.  I've never seen one without an indemnification agreement.  It's a good idea to read the whole contract and see if it really benefits you or them.  

This is not meant as legal advice.  This is merely my thoughts on how I've addressed and reasoned with this own issue with my own rental properties.  I would recommend you consult an attorney in the states where the rental properties are to get advice. 

Hello BP,

I'm considering using this company as a property manager.  Has anyone used them or have feedback? 

It's always a good idea to do estate planning before you start investing in real estate.  In Indiana, this probably means creating an Indiana living trust, placing all your assets in the trust, then having the trust lend the investor money, but consult an Indiana attorney to confirm.  Good luck!

@Taylor Rees You'll need a dedicated LLC bank account, so price out the cost of getting an LLC bank account. If the bank account requires a minimum deposit, that's pretty much the same as a fee. Also, if the property is out of state, you'll need to appoint an agent for service of process, so price that out.

@Royce Talbo- Don't take any of this as legal advice, and get a local attorney to advise you on your own situation.  I'll talk in general about some of the things to consider in creating a partnership.  You're right, there are a number of risks in creating a partnership. 

1) Is it worth paying an attorney to set up the partnership correctly?

2) If you're partnering to buy a long-term asset, such as a rental property, will your heirs automatically get along with your other partner(s)?  Is the survival of the asset after your death important to you?

3) It might be better to do a joint venture - a short-term partnership - with a prospective partner to see how you both get along and then see if a long-term partnership would make sense.  You could just repeat your joint venture over and over (i.e., do multiple flips, wholesale deals) without doing a long-term partnership.

4) The LLC may or may not protect you depending on the type of lawsuit, where the lawsuit arose, and the state the LLC was formed in.

(The above is by no means a comprehensive list of things you should consider when starting a partnership.)   

@Jimil-Anne Linton- Sounds like you have some good habits working for you.  It's too early to invest in stocks.  Build up your cash reserves until you have about six months of expenses saved, and then re-visit the issue.  An expensive repair to the Prius and some hefty medical bills could be disastrous without the cash savings.