All Forum Posts by: Allan Smith

Your buyer could certainly assume the loan and while it is advisable to inform the bank of this, I don't know that it is legally required. However, most sellers want their name taken off the loan so that they are not responsible for paying it if things go sideways later down the road. And the only way to do that is by communicating with the bank that you are exiting the partnership so they will take your name off the loan. If the asset has performed well for a while, that may be it and they won't make the new partner sign on.

Setting aside the fact that a listing agent should know how to price properties that they list, I would suggest talking to the broker at your firm. Ask them for their recommendations on pricing properties like this. Or perhaps there's other Brokers that are mentors to you that you can ask. I've not dealt much with commercial property, but comparable sales do not tell the whole story. Did you would want to find out what the business model was on those other sales and see how it compares to this one. If it's a similar business model then perhaps this one is worth more. It does seem like in this market sometimes the fundamental financials don't matter anymore and people will just pay anything for investments. So if that's the case, someone very well may pay the higher price for your asset but the market is softening so I would be wary.

Once your taxes start to get more complicated and need some strategy, that's when you hire the cpa. A good rule of thumb is if TurboTax doesn't do it easily anymore, it's probably time to upgrade. Once I had a few rental properties and into a couple flips I started hiring one.

CPA can be wherever, just make sure they have expertise in your state. Some will say that they can work for any state, but then they will not realize there's a different kind of LLC tax in your state, or whatever, and it will not go very smoothly .

Um. This is not how taxes work.

you don't pay taxes on money you borrow. Only on income that you earned somehow, or from selling assets.

A new construction loan would definitely not fund a mobile home for you. But you might still be able to get some kind of commercial loan for the mobile home. If nothing else, talk to land Banks and ask them for a loan on the land and let that fund the rest.

Now imagine that that stock is a bit of a pain to purchase and operate and that most people don't have the bandwidth to add it to their schedule.

I've come to this realization only recently. I've been blessed to get dozens of rental units and they have been very impactful financially, but I realize that most people can't hardly manage this while working their full-time job. Plus there are so many mistakes you can make along the way, whereas stock is just a couple clicks.

I would recommend real estate to pretty much everyone, but I know there are a lot of people who don't have time or want to deal with the headache of it. Even if they hire a property manager it's still very hard to find deals and you have to go get the loan , keep an eye on it to make sure the property manager is doing their job, Etc

This is too funny.

private lenders don't jump on board from posts to strangers on the internet. And for 5%? C'mon now.

llc won't do much. If partnership goes south LLc won't matter. Vet your partner very carefully. Understand their goals and motivation deeply, that will come into play later.

sign an agreement together. Describe exactly what everybody's roles are.

Very hard to find cash flowing rentals right now. A lot of the gurus (even bp ppl like David greene) are saying just shoot for appreciation since it's way more than CF anyway. 

My virtual assistant manages our portfolio. The portfolio is close to me, but she will hire local vendors for doing inspections, putting signs in the yard, hanging lock boxes and so on. So we are running the portfolio virtually. We use buildium but there's many options.