All Forum Posts by: Vince Greenland

i did not see RE taxes and insurance either

I am considering going paperless, which will offer so many advantages to me. However, in order to do it, leases and electronic sigatures is essential. I would like to get tenants to sign my lease on a tablet device with a stylus. My question is regarding its legality.
if the lease is ever contested and a tenant is smart enough to challenge the signature, would it hold up. Is there a way to minimize risks?
Is anyone out there currently doing this or some form of electronic signatures for leasing now?
Thanks for the help

Chuck
I also use the $100/unit cash flow as ONE of the factors to determining if it is a good deal. I capped ONE because it is only one "tool in the tool box" so to speak that I use. I have over 80 units and some commercial properties and all have a nice cash flow. However, I try to use as little of my own money as possible. The bottom line is that interest loans have been historically low and prefer to keep "my money" else where. Although it is coming more of a challenge, little or no money down is still possible. This is where the $100/unit and general positive cash flow is more of an issue. Because not only are you getting the cash flow, you are also paying off the loan, while your biggest expense (mortgage) is fixed but your income, if you know what you are doing can continue to rise. This philosophy may be why you think it may seem lower. Just another school of thought...keep in mind this thought....what is the rate of return on a a 7-unit getting $100/unit with no money down? I call it the side way 8....infinity

I have a potential deal going on that i wanted some feed back on...The property is a 9,400 SF office building that has been vacant for 3 years. The current owners operated their computer business there for several years.
They are not interested in the real estate or any potential leasing so the marketing of the building is sub-par at best. I have been approached by a good government based tenant on their interest in the building. They want it and would like to lease it for us for a 10-yr first option triple net.
I have been negotiating with the owner and think we can get the building for $200k and would need to put another $200k into it for improvements to lease.
I have not started hard negotiations with leasee (waiting until i get control of building, but will not close until executed lease is in hand) but have casual discussion of $9/sf.
So we are looking at cap rates in high teens and a hefty cash flow with paying off the building in 10-yrs.
However, my concern is I really have no interest in the building other than the tenant. it is on a busy road just off of a major interchange, but the property is crammed in and has low visability. We do have about 200' of access on the busy road but it is under utilized.
I have always followed the philosphy of you buy based on the property,( location, location, location....)however this deal seems to good to pass up, but I still have reservations.
Our plan is bank on the 10-yr lease and pay the building off and see what happens after that which should minimize the risk. I have substantial other real estate holdings (multi-families with only one other commercial) to also rely on but still somewhat concerned over the commercial side of things.
Anyone have any thoughts?

I use tenant pro. i have a varied portfolio with SFH and multi-family. i think it is expensive and can be a bit quirky but have learned to like it. I think as you continue to grow you need something other than quicken to manage real estate.
tenant pro does a decent job of storing data on tenants, units, ledgers etc., however the support is bad and as they upgrade their is absolutely no support for the old version.

1. As I understand it, an LLC must hire an attorney for any legal work and evictions......Not in PA. I have several units and find that most attorneys are actually not any more familiar with the process than I am. Also, i have only had one tenant that has showed up at the hearings. bottom line is if they dont pay they are going to lose. So for me why pay for an attorney.

2. To keep the LLC protection it must have it's own bank account, if you put each property in it's own LLC, do you need to maintain that many accounts? Do you have another LLC that collects rents and pays for expenses?..............I have two, one for multi-family's and one for comercial properies. I have heard the arguments about liability, however two tax returns and two bank accounts are enough for me. I have an umbrella insurance policy to cover liability.

3. Getting loans when a property is owned by an LLC seems to be very difficult. Is there any way to get around the issue?..........I have NEVER had a problem getting loans with an LLC. Bottom line is that you have to personally gaurantee the loans anyway, although lately i havent even needed to do that. I guess we have been lucky...actually closing on a loan this week on a small commercial property and will also upgrade my line of credit to $250K, all in the name of the LLC.