All Forum Posts by: Steve Sorensen

Hi,

I am refinancing a BRRR property into my LLC in the Houston area. I purchased the property in my LLC that I formed in Colorado with no issues. I've refinanced another BRRRR into the same LLC without any issues also. Now, however, this new refinance lender is requiring that my LLC be registered as a Foreign Entity in Texas. It actually looks like I maybe should have done that originally but nobody said anything to me about it previously.

So I'm working to fill out Form 313 and, for anyone familiar with it, question 10C is saying that I need to have a Texas business address...it says it doesn't have to be my primary office but it has to be "where service of process may be personally served on the entity's registered agent during normal business hours." I have a sole proprietorship LLC, it's not like I have "offices" so I don't understand how to get around this.

Has anyone been through this before? Any suggestions on how to put a property in an LLC when investing from out of state? This whole thing seems silly, wouldn't the whole point of registering the LLC as a "Foreign Entity" be that I don't have an address in Texas? Otherwise I'd just create a damn LLC in Texas and not mess with the Foreign Entity registration.

Ultimately, what I need to do is put my Texas property into an LLC one way or another. The other option I was thinking about was forming an LLC in Texas, but again, I don't have an address in Texas other than rental properties so I don't think that would work either. Anyone have any suggestions?

I have a tenant that's been causing problems with other tenants in my building...he's a 60ish year old guy with some mental issues, a drinking problem, and no job. He's paid his rent on time for the most part, but he's gotten in a number of altercations with other tenants and my property manager. I've decided to not renew his lease because he's caused so many problems, and I've given him three extensions on getting out so that he could try and get his stuff together and find another place to stay...I'm not trying to throw the guy out on the street. He's an ok guy outside of his drinking, but he does have some clear mental issues also, and in his last conversation with my property manager he mentioned that he should end his life because he has nothing going for him. 

I'm not a social worker and he's a grown man, but does anyone have suggestions on how I can help this guy while also being a businessperson that has a property to manage? He's tried fighting other tenants and has been very nasty to my property manager a bunch of times so he needs to leave, but he's also vulnerable obviously, so if there's a way I can help him or put him in contact with someone who can, I would feel much better. Being totally blunt, I don't have the time or knowledgebase to help him much personally. If anyone has suggestions I'd love to hear them!

Looking for recommendations for an app or other software to track remaining to-do items in a shared list. I want something simple (and ideally free) that we can both download and update as tasks are completed. I've found a few general suggestions online, wondering if anyone has experience with a reliable app. These are simple SFH remodels so I don't need any sort of fancy document control software.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $12,000

BRRRR

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000
Cash invested: $12,000

BRRRR

Thanks for the suggestions! I posted this in a couple of forums and Wyze was recommended a few times and had what I was looking for so this is what I did:

- I bought this camera and base station:
https://www.amazon.com/dp/B09DTHN1KB?psc=1&ref=ppx_yo2_dt_b_product_details
- I bought three of these cameras to go with it:
https://www.amazon.com/dp/B08FFK9ZYR?psc=1&ref=ppx_yo2_dt_b_product_details

- I then bought a hot spot from AT&T with 15 GB of data. It cost me ~$275 for the device itself and added $25/mo. to my plan which came without a contract so I can cancel it between rehabs if I really want to.

I'll try and remember to follow up on this post to let people know whether it works or not!
Thanks again for the suggestions, much appreciated!

Has anyone found a good security camera for doing a remote BRRRR????

There's so much crap and terrible descriptions on Amazon and elsewhere on the internet...I can't find a good answer anywhere. I'm BRRRRing a property out of state and have had some semi-minor vandalism to the home while it's under construction so I need to get some cameras in there. Here's what I'm looking for/thinking of:

- WiFi enabled - I want to buy a hotspot from AT&T and set it up in the home and connect the cameras to the hotspot. I don't want to have to hardwire the cameras for the signal itself.

- Cloud storage - I want a reliable app that has cloud storage so that even if the cameras get stolen/damaged that I still have the video stored in the cloud. I found a couple that have cloud storage but their trash websites won't tell me how much the damn monthly payment is so I'm not willing to just guess. They do advertise their free 7 day trial though of course!!! How wonderful.

-  Can be wired for power or battery/solar powered. Preferably wired because I'm going to put one inside the house but I can make either option work.

Let me know if anyone has used anything that fits that description or has other suggestions. Thanks!

I'm completing my first BRRRR and lining up my contractor. Do you guys use the contractors contract or do you have your own that you make them sign?

I had a tenant that I evicted for being arrested with meth in a stolen vehicle on my property (and also for not paying his rent but I couldn't evict him for that...thank you Minnesota Covid protection laws!!). And before anyone gets sympathetic for this guy, he was working up until May, 2021 and got fired just for being a bad employee (meaning it wasn't a Covid layoff), then he was subletting the unit without my knowledge, pocketing the $500/mo. he was charging the subletter, and not paying me a dime knowing I couldn't evict him. Then of course he trashed the place once he actually was evicted. 

The court ruled in my favor and I'm now able to pursue him for about $9k for court, fees, legal fees, and damages. Does anyone have experience with collecting on these types of fees? What's the best way to go about it? What are the odds I actually see the money ever? I have his Social Security number and his state ID (he doesn't have a drivers license). I have an idea of where he works (not 100% yet) and I don't know where he lives now.

My lawyer that I used for the eviction and conciliation court case says he can try and collect, but at $425/hr, that adds up quick. He mentioned I can charge the tenant for those costs, but that sounds like a never ending circle...eg. I use my lawyer to collect the initial $9k, but he costs $5k to do that work, then I collect that $5k and accrue another $5k in lawyer costs and on and on. 

I've reached out to a couple collection agencies and haven't gotten responses yet, but sounds like they take about 1/3 of the total collection amount. I could potentially live with that because $6k is better than nothing, but looking to hear what other people have done in this situation.

Thanks in advance!

Good question Jordan, I'm looking to BRRRR properties and my main goal is to cashflow. Appreciation is of course a factor to consider and desirable but not my main priority. I'm looking for cashflow to replace my current W2 income as soon as possible.