All Forum Posts by: Scott Mac

Offering It and adding it to the rent, might be partnering??

In which case I would worry about legal exposure.

What if Tow Truck Tommy bangs up one of the other residents' cars while towing it out of the lot or towing it back to the lot, or damages the towed vehicle????

As an agent for this business--offering it's services for a commission, would that also open you up to legal exposure???

You might want to check with your insurance company, and your general counsel and find out if you have some exposure if you do this.

Good Luck!

Has anyone used Zinsser Ceiling Paint and Primer in one???

What is your experience with it?

Does it cover water stains as well as they say it does--in one coat?

Does it leave a paint smell in the unit after it dries, or is it a no smell dry?

How is it for roller application, does it spatter all over you a lot when painting with a roller?

Does the spray can blend well with the rolled on product if there is a water stain to be covered?

Et cetera...?

https://www.rustoleum.com/product-catalog/consumer-brands/zinsser/celing-paint/ceiling-paint

 it seems like the potential buyer might want to have you put in some spec items that you normally do not offer to customers. 

In other words customer wants a spec house (at production hours cost) versus a production house, which if you are not set up for this, how do you price it as a non custom builder for only one home? 

And what is this unplanned change you're going to have to give to the workman to do. 

Plus it's something they're not normally doing, so the installation may not be up to the same standard as what they normally do.

But it would be wise to listen to what he wants, because you should always want to know what your customers desire.

If this customer desires a Rheem Brand whatever due to the companies clever marketing or product superiority in some way that the customer values highly- maybe think about offering that as a choice or even a standard option where you build upon the companies goodwill that they already have in place for the product.

Good Luck!

It would be wise to order a home inspection from someone who does duplexes.

It would also be wise To order a sewer cam inspection.

It would also be wise to have a reputable roofing contractor who has been in business for several years walk the roof and give you an estimate.

With roofing there is no way to tell how long it will last but you can tell if it's worn out and needs replacement. A roofer can probably give you a guess at best. 

With the roof the other issue you have to consider is blow off. Where the winds strip shingles off of it. That could happen at anytime, and may be an insurance claim if enough come off.

If the home inspection does not address the electrical and plumbing enough you may wish to have an electrician and a plumber come in, for a fee, and have a look at your system.

Or you could just wing it and not do any of these things and hope for the best.

Good Luck!

Collecting the rent 1930's style.

You want to risk your potential profits by being a little lazy for a day?

How long does it take to walk the property; how long does it take to get there?

Even in a faraway market you're talking a couple of days out of the year for travel.

And you can make it a fun day - you can have breakfast at iHop and have a big omelet, take a cup of coffee with you from 7-11 for the walkthrough. Meet some contractors and talk to them about it.

In addition to a walk through a home inspection might also be a wise move, because it gives you a written report of the problems that the inspector finds. Which may not be all the problems - they don't always get everything.

A sewer cam might also be worth thinking about.

And if you think the tree situation on the lot needs to be dealt with getting some bids beforehand on that chore would be a good idea too. Although you may not have to be on the site with these guys- sometimes it helps if you are.

Good Luck!

Bin Zinsser makes products to cover over cigarette nicotine stains and smells.

Some of their products have a toxic smell so you have to be wary of that, especially if you have animals around neither you nor them can be exposed to it.

Meaning you might want to test paint a room and see if that solves your problem.

Good Luck!

https://www.rustoleum.com/product-catalog/consumer-brands/Zinsser

Larger multifamily is my passion.

You can see my bio by clicking on my pic .

Cash money, seasoned in a bank account, plus the ability to qualify for a loan - credit history, job length, etc...

The other two that you mentioned seem to go hand in hand. Your reputation is based on your experience.

Have you been successful in this in the past, or have you made mistakes and found ways to overcome them.

Just my 2 cents.

Anonymity...... The Corporate Transparency Act (CTA) requires LLCs and other entities to disclose who their beneficial owners are to the U.S. Treasury Department's Financial Crimes Enforcement Network (FinCEN).

I do not think this is part of Homeland Security, but it might be. Although I don't think they're going to be waterboarding anyone for the information, failure to disclose ownership probably comes with some severe penalties.

And as far as this complicated setup that you have envisioned each of those shells has to have independent bookkeeping, and corporate minutes, some of them will probably require tax returns. S-Corp's requires a payroll which can be a PITA to comply with compared to owners draw, or distributions.

And when you really need a complicated setup like this is when you're under attack, meaning you need an attorney to handle the case.

What if you've made a mistake in your logic- meaning you've left an opening for an attacker to seize what you have.

If you think you need something that complicated, it might be best to get with an attorney to have this set up in a way that the attorney understands it in case it needs to be defended in court.

If someone designs it for you they should be able to defend it for you- make sure of that.

That's just my thoughts on it - Use an attorney to guide you through complicated setups so you don't make a mistake. 

Then get with your tax Person to find out what the cost of this type of setup will be, and also talk to your lender to see if this is going to put any restrictions on your borrowing.

Good Luck!

Look into financing the deal, your loan will dictate what you must have dollar wise.

It may require you to maintain a specific liquidity ratio over the life of the loan, or maintain cash reserves equal to a specific number of payments, or upon inspection prior to the loan being Funded, Require you to come out of pocket with cash, for instance, to replace the roof because it has more than two layers on it, replace or grind concrete that has heaved, or embark on a program of replacing balconies that have rotted within a certain amount of time, et cetera...

In a nutshell what I'm saying is, the amount of cash that you are looking to have in your bank account to close on this is probably going to be different for a commercial loan then you are used to with an SFH loan.

So have an idea of what your lender is going to want to make a loan like this. 

You will also need working capital for turns, evictions, repairs and maintenance, et cetera..

Good Luck!