All Forum Posts by: Will Fraser

BUT BUT BUT let's address a key thing here . . . it seems like you may be getting the cart before the horse.

I'd highly recommend finding a savvy CPA (one that self-identifies as a tax advisor would be even better) that is competent in real estate, then getting coffee with them and your favorite asset preservation attorney and pepper them with questions.

An LLC is a liability protection play and NOT a tax play.

However, the way your entity is formed will have implications on your taxes, so you'll want to hold both in view as you figure out how to structure your businesses.

You might find that something like a series LLC offers a bit of both, but I'd listen to whatever the attorney and the CPA come up with :)

Another critical point here is that a non-renewal is NOT an eviction.  As a landlord you are absolutely able to serve a tenant a notice that you are not renewing their periodic tenancy, provided you serve proper notice (as defined by your local Landlord Tenant Act).

@Taylor Dasch good thoughts here!

Have you owned the studio apartment long enough to study the frequency of turnovers and physical vacancy stats yet?  

Is yours a traditional cashflow market or something different?

Welcome to the party @Jesse Rodriguez!  

I own a brokerage and a property management company in OKC and love getting to sling real estate and help families build multi-generational wealth in all 5 capitals of life!

Good luck in the off-market pursuits!  Let Caveat Emptor ring loud and clear in your mind and check, double-check, and stress-test any number that a wholesaler or unskilled-in-investment agent puts in front of you.  They don't marry the risk for a lifetime, but you do, so know your numbers and work with the best there is.

Get after it!

I would sharply disagree with Jordan's thoughts above with regards to Mobile Home parks.

This is a gnarly, nuanced asset class that can be highly profitable or majorly painful . . . sometimes both I suppose.

While most commercial brokers gladly flip the bird to the idea of "co-brokerage" and "buyer's agents" in commercial, as a commercial listing agent I have worked alongside a DYNAMITE buyer's agent on the sale of a mobile home park and he was a ninja.  I think it is the most prudent thing you could do until you are a master at your asset class.  At that point then embrace "caveat emptor" and go it alone, but until then get someone like Wes Petersen with Stratton Group.  Pros like him will save your skin and I promise you the decades that it has taken folks like Wes to gain their skills are something you can collapse time on, but don't try to wing it from the start on MHPs

Great questions here, @Ben Scott!  i'm sorry I missed this for 8 months :( 

For this particular one we found the tenant-buyer then the home.

I'm working another one now where we found the home then the buyer.

I think finding the tenant first then the home (and making sure the home will work for the 2-4 backup plans you have for it) seems like the more sensible path to me now.

What do you think?

As Drew mentioned above, you'll learn along the way.

The pertinent questions to me are:

- How much are you willing to hurt in the process of learning?

- Are you ultimately going to profit more from painful, fiery learning OR from taking the time to suss out vendors (like a PM, broker, lender, etc) in the market you're investing in that are rockstar additions to your team?

If going it alone and learning through fire aligns best with your goals then you WILL be able to learn and grow.

If there's a better way, though . . . take it :) 

Stessa.  That's it and that's all.  You don't need anything else for a property, and I've found folks running a LOT of properties and using Stessa for the accounting and it's legit.

It's amazing to see how much has changed in the PMS space in 11 years!!