All Forum Posts by: Alan Russell

I started around 55....

If you copy and paste it into a browser it works.  Jason Gott, if you hit the return key after putting in a link it will make it clickable. 

I use simplifyem.com but there are several out there

though about this an realized this would NOT fix the issue completely because, it wont solve the issue of potentially having her kids end up as half owner should something happen to her.  If your both on the property and unmarried then each of you own half.  Her half would go to her heirs and yours would go to you.

Possibly put it in a trust and you could be joint administrators of the trust....

best bet is to probably consult a real estate attorney in your area.

As long as she is willing....she can just add your name on the title.  You don't have to be on the loan.

My wife and I do this when we purchase a house because she doesn't work and doesn't have income.  The mortage brokers all tell me that having her on the Loan complicates things so I just have the closing attorney put her name on the title.....problem solved

@Stephen Shelton, I actually agree with you on this however, lots of empoyers still do it (at least in my area).

@Marc Belisle,

I used cozy and Zillow Rental manager to list and advertise the properties that I rent.  once I have a potential tenant then I send them a link from Zillow Smartmove and they can apply, this runs their credit and a criminal check on them.  Then you will need to contact their employee to verify their income,  I have found that with most employers you will need to ask the correct questions to get a satisfactory answer.  I will typically tell them I am calling to verify employment because the applicant listed them as their employer and they will answer "yes or no".  Then I will tell them that they applicant listed their income as $XXX and ask that they verify that is correct.  Most of the time they will tell me yes but sometimes they say company policy prohibits them from answering that question.

in that case I look a the credit report and it will usually have their gross pay listed and if it is close to what the application says then I am ok with that.

If the company will not verify their income (happens more often every day) then I do ask them to provide me with their last 2 paycheck stubs which will list their gross pay and you can just do the math from there, or you could ask for a copy of last year W2 or tax return.

@Tyler Carpenter, Tyler my first rental was purchased with my LLC. What I discovered is that because you are buying it in the LLC's name you will have to finance it with a commercial loan. The issue I found is that most of the bigger banks would not lend to my LLC, not because of the lack of business credit, but rather because the purchase was not large enough that they considered it not worth their time. one bank in particular told me if the financing was not more than 1,000,000 they were not interested.

I had a lot more success with with smaller local banks because, i think, they are more interested in the local market and businesses.   I did however, have to personally guarantee the first two that I purchase this way.  after that I seemed to have a track record with the bank and they allowed me to obtain the loan in the company name with out the personal guarantee.(not sure if about your bank obviously)

the strategies that your mentor is recommending to you, purchase the property in your personal name and then transfer it to the LLC after closing could cause the bank to call the loan due. (they dont like that)

Finally to address your other question about LLC's, the primary reason I use a LLC is to protect my personal assets and credit. If the mortgage is in the LLC name (assuming you didn't guarantee the loan) , then if the LLC defaults then it will not affect your personal credit at all. Additionally by putting the property in the LLC helps to prevent someone from suing me personally should they get hurt on the property or something of that sort, it will not however, stop them from going after the LLC assets if you get sued personally.

I also purchased a $1Million umbrella insurance policy to protect the LLC and myself. This policy is cheap ($180 per year) and it helps protect my company if the LLC gets sued. It will also help protect me if (and only if) I have an accident while on company business and get sued because of the accident.

@Joseph Berhane,  I agree with this completely.  It took me 2 contractors and 6K to learn the lesson but I did learn it.