All Forum Posts by: Steve Crawford

Whether you do, or you don't. Make sure you get the written consent of the applicant. Hopefully, it is on you application somewhere. Have to be in compliance with the Fair Debt Collections law.

I would include the Dad on the eviction since he used to live there and you have knowledge of him being present on the property.

If he shows up to Court and says he is not a tenant. You can just agree and say you added him b/c he had been present for a considerable time and you didn't want to take any chances that he was some kind of monthly implied tenant.

If he says he agrees, and he is a tenant. Court will treat him same as daughter/lessee.

No. Have never seen it.

First layer of protection is your insurance. If it is clearly not enough, they can pursue you personally, your fellow shareholders or any other companies you own. I have seen these cases, but they are very difficult to win.

I've seen lenders shoot right through the entities (llc owners) to the guarantors and take the real estate and other assets of the guarantor for default. But those are not general liability cases.

Costs: it really varies by State. Mitch, CA is almost the most expensive. CA has a LLC tax of 800 per year unless your equity exceeds 250,000 then the tax goes up pro-rata. (i would guess that is why your attorney advises you to stay at 250,000 equity)

MO 50 bucks and an annual report (45 dollars) no limit on size.

NV 125 bucks and annual report (125 dollars) no limits on size

NY has a tax for LLC's that desire partnership taxation based on number of members.. can go up to thousands p/yr

....................and so on.

As far as protecting personal assets or assets in one LLC from liabilities in another LLC..............not too likely. It can be done, but arguments of alter ego for "same owner' LLC's with same busines purpose and arguments of piercing the veil are not difficult arguements to make and win. There are a host of factors.

LLC (or business entities) are necessary for multiple owners/partners. They are also very good for structure and organization.

Better legal fees for eviction than criminal defense.

You are not in any trouble just because you own the home. The exception would be, once you have "knowledge" of the activity, it can be argued that you are in actual possession........even though there is a lease.

Allowing her to retain possession with your knowledge (that is accomodating her with extra electrical capacity) to run grow lights is probably worse.

You dont have to evict her, but you if she wants to stay, you will have to let her know the dope has to go. You own the property and you can't be a party to her criminal activity.

Now thats experience.

You know I'm getting some kind of AWARD for that.

If you are just matching a hole or a spot and the new stuff is "too" white ...........due to age, weather, etc....i like to spit a little tobacoo juice in the mud to make it match up.

A contract for deed will give you equitable interest in every state as far as I know and certainly in the eyes of the IRS. But, it still wont get your name on the deed (which is a legal interest).

Seller carry back are second mortgages. Just another way for the owner to finance, but they are in a 2nd position not a 1st. Whether a bank will let a Seller carry back a large % of a deal (or the entire balance of the deal) will depend on the bank.

I bought several motels like this many years ago. Resulted in almost no equity in the properties for first couple of years.........but I had no money down. Sold them years later and cashed out. Never put a dime into those properties.

I have purchased on Contract with as little as nothing down. I can't recall putting as much as 10% down.

Another solution would be get a bank to loan you 50% and the owner to carry back 50% for 100% finance. Then you dont have to worry about the Contract issues.

Dont forget, if you buy on Contract.............Record it with your County.

I too was advised, yesterday, that it was 10% down, no PMI, 30 yr fix money avail and only applied to first 4 properties. ...........for NOO.

I am a bit cautious that some of these REO are marked up a bit higher due to this Homepath product.

I have noted that HUD can come down a quick 9-10 % (in my region at least) once it hits "all bidders", but Fannie, so Im told, isn't moving but a couple of points b/c of the demand for their REO ............via Homepath????

Anybody else consider this???