All Forum Posts by: Steve Morris

Whats the R-Value on that type of insulation?

I'd look at the $/SqFt myself.

I agree, but a couple of points and correct me if I'm off base.  Each property should be in a LIMITED LIABILITY Corp for those reasons:

1. You always want multiple LLC. I have 136 LLC and many of them own other LLC. I have so many LLC that you have to go through five or six before you find me. What attorney would even waste their time?

Am a broker and if your state has a business registry, I can find you.  About your best defense is to get a 3rd party (prop mgr or atty) as the listed agent.

2. An LLC is like an invisible shield that stops anyone from suing you. Someone comes after you, just say "sorry bro I got an LLC". I wear a t-shirt under my shirt that says LLC, just in case.

Well, they can sue you, their recourse is limited to the LLC and its holdings. However, that is good if you have a lot of stuff at stake besides the property in the LLC.

3. An LLC doesn't owe any taxes, because it is a pass through entity. (CPA all agree it is a pass through entity, so don't think I am making that up.)

I hold apartments in an S-Corp which my atty says gives me a liability shield.  That way I can pay myself a salary and get the profit numbers to my liking for tax purposes.  More complicated admittedly.

4. Be careful not to pierce the corporate veil. This basically means let your henchman do your dirty work and you stay clean.

I agree.

Depends, am licensed in OR/WA.  IN WA, seller needs to fill in Form 17 (disclosures) unless a buyer specifically waives it.

I'm assuming you're hiring a competent inspector anyways, so I wouldn't worry much, however, it is that much less recourse if something that is not patent (like he buried nuclear waste onsite) shows up later and wasn't apparent to an inspector.

Sometimes, like on a foreclosure, a bank may not make a disclosure and issue only a "special" warranty deed.

"I’m just trying to figure out if the only option is refusing to sign the check, or is there other options?"

On the house, probably not much, but go see a lawyer.  Call the insurance agent and explain the situation.  You did pay premiums and are the named insured so you have some claim.

Sorry, meant religious in the most generic sense.  I do feel for you, I run into these situations more than I like as a RE broker.  Sad when money means more than morality.

"What should I do now?"

Show him what you/he signed on the option and point out there's nothing about crediting rent paid to the price.

"If we're all investors and we have each others back, is it too much to get a personal recommendation?"

OK, am a broker and I'll recommend people, but suppose he does a lousy job for you through no fault of my own?

Now I lose business for something I don't get paid for or even know how to do.

You / your father have an interesting relationship :)

I guess just lay out what's going on and hope he finds religion?  He's going to find out sooner/later.

Anyways, the one thing on quitclaim, before you ever do it, is make sure you understand and that there is some consideration (i.e. money) involved.  Being removed from title does have some value and affects marketability of the property.

I'm a broker, so my bias.  Just tell them what you want and show you have the wherewithal to make it happen.

If I find out later I'm one of many that your dating, you may not be my first call if I find a hot deal.

So don't know what guidance to give you.

Also, you should ask a CPA since there are tax consequences if you follow the rules :)

It is income like a lottery ticket.

if a bank approves me for a loan with 20% down, would there be a situation where I would want to put more than that down?

Well, if you're approved, I'm of the school of thought you do as high LTV as you can.

The only reasons why I might put more down:

1) I have enough cash reserves for emergencies already

2) Sleep factor of less debt

3) Recheck your CFBT with/without.  More debt means less CFBT.  So more down is buying you more CF down the road.