All Forum Posts by: Steve Hall

@Shiri Manor Nisenbaum I don't see this issue. Why don't you just register your GA LLC as a foreign LLC in Texas?

Should you have purchased the Texas property in a Texas LLC? Of course. The Texas LLC could probably even be owned by the GA LLC. (You'd have to check on that because every state is different.)

I'm sure the CPA's on here have not touched this post because you have not provided even basic information about your situation, such as are you an American citizen? Are you from Georgia? Why do you have a GA LLC owning all of your properties?

You are manually filtering the forums? Just add a new keyword called "marketing".

@Account Closed

1) Never give oral/verbal notice to a tenant unless you also hand them written notice at the same time.

2) Never give "advanced warning" that you want a tenant to leave. If you are required to give 60 days notice, then give 60 days notice, not 78.

3) When you agree to allow tenant to stay longer, you admitted that you did not have a good reason for asking them to leave at the end of the lease. They will probably ask again to stay longer.

4) If your reasons are monetary, you could have just provided 60 day notice that the new lease for next year was going up $500 per month. They tenant would have left voluntarily, or paid the increase. Win/Win.

5) Read your own lease, and read your state laws. Before you ever lease your property, you should know what happens at the end of the lease if the tenant does not renew.

6) Next time, consult BP for proactive advice from experienced landlords.

@Ethan Wagner You've been on BP for 3 months but you only have a few posts, no bio, no photo, you're not a Pro member, and you think investors are going to line up to work with you?

I'll bet you're wondering why no one replied to your previous post last week, too.

That is a great question, but it is similar to asking "how do I know when I've find the right doctor?" or "how do I know when I've found the right lawyer?" I think most people just Google them, and go with the first one they see, or the one with the best reviews. Perhaps a friend or family member recommended them. Most people don't take the time to find the best one.

Everyone has a different definition of "best" too. I like my doctor to be knowledgeable, whereas others like one with a good "bedside manner".

Finding a mentor is like finding gold in the ground. We all know it exists, but no one knows where to look, fewer even try, and only small minority ever get that lucky.

I think the "you need a mentor" propaganda is propagated online by the gurus that want to sell you access to themselves or some other product or service that lines their pockets.

Bottom line: Very few people give away anything for free. You either need to proactively seek the information, or hire advisors and pay them for their expertise.

@David Smith Obviously if you pay income tax, and I don't, I get to keep more of my money! That doesn't necessarily mean I make "bigger returns" on my rental properties though. Also, if you live in New York, it does not matter whether you buy property in NY or FL, all of your income will be taxed by NY even if you own property in FL. If you moved to Florida, you would not pay state income tax on your Florida OR New York properties. (Now you know why a lot of investors move to states without income tax.)

I like using examples:

Let's assume you are single and your state has a 5% income tax rate with a $10,000 exemption. You make $10,000 a year from your rental properties (with a 8% cap rate). You owe $0 in income tax to your state.

Now let's assume you have a job, or are self employed and you make $20,000 a year (taxable). You still make another $10,000 a year from your rental properties (with 8% cap rate). You now owe $1,000 in income tax to your state.

Now you move to Florida, you get married, and you and your wife make $100,000 (taxable). You still make another $10,000 a year from your rental properties (with 8% cap rate). You now owe $0 in income tax to the state of Florida.

Same rental properties, same cap rate, same person, different life situations. Your cap rate is still 8%. Nothing has changed with your investment.

I hope that makes sense...

@Mushfiq S. You can't get around needing an attorney. The first lender could show up at auction and just ASK for interest and the auction company might give it to them! I've seen same stranger things.

You MUST have an attorney working on this ASAP!

Welcome to BP Tommy.

Don't use emotions to consider investment deals. If you are an emotional person, you need to find a partner that does not use emotions to evaluate deals. If you understand MBTI, you will know that there is nothing wrong with you, some people just make emotional decisions (Feeling) by default, and others make rational decisions (Thinking) by default.

24k repair seems too low. Hire a professional to give you a quote. This number is vital to knowing whether 40k is a good deal or not. You also failed to tell us the terms of the 40k Seller note. 10% for how long? Amortization length? Balloon? What are your plans to get that down to something reasonable?

If your life savings is 35k, then you cannot afford to do this with cash. DO NOT put all of your eggs in this basket. Since the property is only $40k, you won't qualify for many loans which have 50k or 60K minimums.

Find a non-emotional partner - with $$$.

A fair deal??? I don't see how this is even a partnership! Your cousin is taking 100% of the risk! You are just the property manager, and it seems to me like you are trying to capitalize on his lack of experience.

You get nothing for bringing the deal, except that he might hire you first as his property manager and pay you the going rate for your area. You can (and should) negotiate your property management agreement with him, keeping in mind that he is under no obligation to hire you.

I get this occasionally too. Just got it now and that's how I found this thread. I use PIA VPN. Normally I get the reCAPTCHA prompt (several times per day) but I have found a work around for that with a Chrome Plugin that allows me to get get 30 reCAPTCHA "passes" at a time.

I understand the desire for BP to protect against attacks and scrapers that may use VPNs, but many smart people use VPNs  as well, so all this really does in the end is upset the paying members. If this is not resolved when my membership is up for renewal, it will weigh heavily on whether I continue using the site.

It would be so simple to create a setting allowing Plus or Pro members to white list their IP address.

FWIW, I've reported to @Account Closed several times about the @ mention not always linking to other members and all I get is "try refreshing the page" instead of a fix. Mentions are a basic requirement of any forum. Come on BP programmers - find the problem and fix it.

EDIT: It is ironic that my mention of @Account Closed did not work (twice!) in this post...