All Forum Posts by: Steve Weidman

Hi, want to increase applicants and offer security deposit alternatives to appeal to more renters and lower risk with security deposit alternatives. Companies such as lease lock, rhino, jetty, lease guarantee, assurion, surety bonds, etc… are ALL designed only for large PM Co.’s leaving us smaller owners with no solutions. Has anyone found any luck with a similar product to offer renters a better experience?

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Has anyone considered security deposit alternatives or security deposit insurance?

How did they go?

In addition to surety bond (which I don’t know how to obtain) how about Obligo or AAOA rent guarantee?

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Does anyone have any experience with Obligo? I read something about a renewal fee? I’m wondering if anyone has had to collect against the policy and how did that process go?

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I have seen some fha appraisers in the Chicago burbs require you to “remove functionality” on the basement unit ie remove stove and microwave cap off electric/ gas and make it look permanent. The kitchen will Be perceived as a wet bar and the basement a shared common area vs 3rd unit. It’s all about “intent”.

With this you pass fha guidelines and the lender has his appraisal. You will still only be able to use one units potential income to qualify (take the higher of the 2) Put the stove back post close.

Remember this will always be an illegal unit though so make sure you are comfortable with that risk. BP has a lot of good discussion and knowledge on this.

Wouldn’t consider this dead in the water yet as I have seen this exact thing done in 2017 fha and all but if the fha appraiser/ inspector puts a kabash on it and no way to proceed with occupancy then look into home possible 5%dp.

Good luck stay positive and just know your risk.

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Very good. I love the outcome. Congrats. Good eye on value add opportunities.

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Thanks so much so sharing!

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Originally posted by @Dorothy Wulf:

Hi James,

Great to hear that your accountant gave you the same advice.

Have you created a name for your LLC? Is your lawyer setting up your LLC or are you doing it yourself. If you are doing it yourself you will need to go to www.cyberdriveillinois.com and irs.gov to get the LLC set up. Through www.cyberdriveillinois.com it will ask you if you want to set up an LLC with an LLC series.

As for banks, I would pick a local bank, not Chase, Wells Fargo, etc. I used to work for Chase and don't recommend it for businesses because building a business requires establishing relationships, and where better else then a local bank or smaller bank. I recommend First American Bank or Byline Bank. You will have a separate account for every tax id that you establish, but I would focus on the main one right now for your first investment.

With respect to due on sale clause is llc with series llc more beneficial vs a trust or s Corp as mentioned?

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Originally posted by @Neomi Riley:

Hi can someone explain the PM system to me and how it's used? Thank you.

Did you ever figure this out?

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Brie*

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All Forum Posts by: Steve Weidman

Steve Weidman has started 4 posts and replied 15 times.

Post: Security deposit alternatives

Post: Security deposit alternatives

Post: Security deposit alternatives

Post: Does anybody have experience with Obligo?

Post: House Hack With Non-Conforming Garden Apartment

Post: One of the best duplex deals I have done.

Post: Lease contract for tenant

Post: Business Structure(s)

Post: PM

Post: Moving to the Chicago area!