All Forum Posts by: Ryan Seib

Either way! If you do not like typing the all the time just go without it!

Interesting. Can you fill it? Can you get an umbrella policy for more coverage? 

Yes separate bank accounts for each, then some bookkeeping software that tracks it all separately for you. Interview several banks with the same questions, put their answers on a spreadsheet to compare which has the best terms for your business.

Matt think of a gas station. One company often owns the land. The other company owns the retail operations. 

It sounds like it *could* be fair. You say you get 20% ownership from the outset? Then you get an equity option for another 30%. So you can control 50% if you meet those conditions it sounds like. But you also say you get 7% for management. Is that 7% upfront; or does it vest at some point; or is it 7% every couple of years, or even tied to performance or something? So does that leave you the majority owner at 57%? Do you get majority control at that point or does the partner still get a tiebreaking voting power or majority of voting shares or something? Do you plan, either way, to have a buy-sell agreement in place to protect the partners if one wants out or you cannot resolve some disagreement?

I do not like tenant in common ownership of property with partners. It subjects you to the external rules (generally) of the statutes in your state. Unless you have some overriding tenancy in common agreement between you that can legally go on top of the statutes. I am not familiar with NY law on that. 

There are variables here to discuss in a serious business planning discussion and workout with perhaps several advisors. Planning strategies and buy-sell, exit strategies.

Yeah it does not matter especially if it is a flow through entity. 

The partnership can look however you both agree. 

Generally I would think the passive partner gets distributions but the active partner gets both distributions and some kind of wage for their efforts. Taxes matter if that is employment income from an S-corp (just an example) or an independent contractor (1099) relationship. 

There are so many options. 

Perhaps you could narrow down the optional structures that make the most sense to you and ask for feedback about which one has favorable characteristics based on the facts you provide, a little more so.

I hope that helps!

Nothing direct but I have some knowledge of the general ideas. It is more of a business operation than real estate in many ways. Think property management but with nurses instead of realtors.

Also be careful to verify the date on the waiver vs date of last work, and the amount waived. Many waivers specify what is being waived and if the waiver only applies to part of the work the GC may be claiming it has rights to work performed after that date and/or for fees over and above the amount being waived.

PS it may not even matter if the waiver is titled "unconditional" or "final" if it specifies elsewhere the work being waived and there is additional work the GC is claiming for.

No that is not a standard fee or anything. That was just what the woman owed. If I remember correctly the HOA just assessed her a fee for not following some rule about pets or something. She disagreed even though the HOA docs were clear. And she brought the HOA to court, lost, appealed, lost, appealed, lost and was remanded to the lower court, lost again. All of which took many years. Eventually the court decided she owed her $300 fee plus all the fees she cost the HOA to fight with her in court.

Regarding exorbitant fees the HOA can charge whatever is in its governing documents. The law presumes that you read those documents very carefully before you buy into one of these, so it lets the HOAs do what they wish internally. There are usually state limits on interest rates and penalties, as well as consumer protection limitations. That is deeper darker terrain than I would be able to get into especially regarding another state's laws. But as a general matter interest rates should be capped at under 18% or so (regulations against "predatory lending") and consumer debts have to follow specific consumer protection regimes such as FDCPA and usually mirroring state law. What really protects people from HOAs is the ability to vote who gets on the governing committees, the ability to sell out of the association, and the ability to thoroughly vet the association and what you are buying into before doing so. It is much more difficult to find reasons to have external regulations brought to bear on internal regulations of the HOA. From the perspective of the courts/government it would be way too much work to mediate between unit owners and HOAs among all the other things going on. So they allow these forms of private association where people can choose to leave if they disagree with the internal governance.

At least that is my take on it I hope that helps.