All Forum Posts by: Bill Crow

@Adam Vasquez

I’m curious to see answers to your question on income. I would not expect lenders to be loose with no-doc / low-doc loans, for the very reason you mentioned.

@Emily Wilson

I’m sure answers will vary based on a number of factors - portfolio size, complexity, owner’s comfort with financial data, etc.

For my small, self-managed portfolio, I developed an Excel spreadsheet that categorizes income and expenses in a manner that mirrors what’s needed for tax reporting. I also have adaptations in the spreadsheet to show my cash income, rates of return, etc.

My actual receipts are file-drawer contained or filed in e-mail folders.

@Carlos Chavez

Regarding the personal property - if your lease does not specifically name the ex as the person who can accept the personal property if the tenant cannot, then I would follow the same procedure as if the ex did not exist. Store the property for the period required by the lease or state law. If unclaimed after that, then you can do what you want with it, including releasing it to the ex (maybe they’ll help with any storage cost). You would be putting yourself at risk by giving the ex the belongings prematurely. I know it’s the easiest path, but not the safest.

Michael, I apologize. I should have been clearer about which "and" I was referring to. It's the one in the middle of the second bullet. If the LLC is owned by the original borrower AND the transfer results in a change of occupancy type.... That could be interpreted to mean that the transfer to an LLC passes DU only if both criteria are met. May want to dig further into that if it applies to you.

There are a number of other threads discussing the level of risk involved when transferring ownership of property financed under a conventional loan from an individual to an LLC, with a wide variety of opinions on the due on sale issue.

@Byron Bohlsen

Both options exist because each serves a different purpose better than the other. Know your purpose and you’ll know your answer.

@Michael Myers

Look carefully at the “and” in that statement.

@Brian Greeson

Family of wieners.... that has to be one of the best spell-check edits I have seen. :)

@Johnny McKeon

Nothing shocking or scary, but my story is similar to yours. I got canned from a corporate job in 2011, and I swore I would never again be dependent on some giant, unfeeling company for 100% of my income. That determination led to me building a rental portfolio that can keep my family afloat if I never work another day.

Use your “disruption” as the motivator for the next great opportunity, real estate or otherwise. Best of luck to you.

@David Lee Hall, III

I actually had someone living in the house behind one of my rentals asked me if I could make our tree drop its leaves in my yard, and not in hers.

@Dylan Barnard

What are the advantages? Shade, utility savings, privacy?

What are the disadvantages? Could make the yard less functional for other uses, may require care and maintenance, cleanup of leaves?

Do you see it adding to the rentability of the house or the well-being of the tenant? If not, what is your basis for the expense?

If you have an answer for that which still has you considering the addition, here’s some other advice:

One other thing to keep in mind - a freshly planted tree will need to be watered about every day for the first month. Will you be doing that, or hoping your tenant will? I wouldn’t trust a tenant to do it. Are you willing to make the trip to do it 30 days in a row?

I just had to tell a tenant that their lawn service girdled the trunk of my young tree with their weed whacker and killed it. They were not happy about the $350 expense, and I was not happy that I bought, planted and babied it just to have it killed.