All Forum Posts by: Anna Swartz-Lopez

@Chris Hepner if you have a separate entity holding your property, then you are on the right track! I can't tell you how many investors I speak with who do not take the time to protect their assets properly. I was just trying to point out that a good property management team can be an important part of asset protection. 

Finding a good property manager is often the most difficult part of RE investment, and if you have a system to do it yourself and are willing to take that on, you may save yourself tremendous costs there. Just be sure to cover your bases on the insurance and legal side of things. But it sounds like you are moving in the right direction, so keep going strong! 

From the perspective of asset protection, having a property manager is absolutely necessary. If you manage your properties yourself, you are personally liable for anything that happens on those properties. If you use a property manager, it helps build that wall between whatever entity holds your property, and all the rest of your personal assets. 

So let's say your tenant slips and falls on the property. If you are managing the property yourself, the tenant can sue you personally and come after all of your assets. Having a property manager helps shield you from the day to day risk of your property. 

Considering how easy it is to get a pet certified as an "emotional support animal," I think it is better for a landlord to allow pets and put rules in place. Get in front of the pet question, rather than playing catch up when a tenant shows you a document that will force you to allow their pet on your property. 

If you as a landlord allow pets, you can collect a deposit for pet damage, and you can usually charge an additional amount per month. You can also exclude certain breeds. It's always better to stay in front of the situation, rather than try to play catch up later. 

All things being equal, a line of credit is usually more flexible than a mortgage. However, 2020 is far from normal. 

HELOCS and lines of credit are the first thing to freeze up during an economic crises. Also, I am starting to hear certain lenders calling due outstanding lines of credit. So it's not just that a lender may not give you a new HELOC, it's also the possibility that a lender will ask you to pay the outstanding balance on any line of credit. This is because the easiest way for a lender to clean up their balance sheet during an economic crises is to cut lines of credit.

Cash out refinance gets you what you are looking for in a single step, which, in the current lending environment, may be simpler. I really suggest having this conversation with your lender, to see how they are reacting to this particular set of circumstances. 

Another option if you are looking to rent rooms and there are hospitals in your area is to market to travelling nurses, using a website like https://www.furnishedfinder.com/  These are shorter term leases, usually about 3 months, and you are renting to professionals who are in an area for work. The higher turnover may be worth the higher caliber of renter. 

The CARES Act allows this only if you can demonstrate economic need because of coronavirus. The goal of the legislation is to allow people severely impacted by the pandemic to access the funds they already have, not to make it easier to access retirement funds across the board. That is for disbursements, anyway, if you make a loan to yourself, you might have more leeway. Double check with whoever manages your 401(k), because they will have certain requirements for this as well. 

Hi Kevin, I live on the other side of the country in the San Francisco Bay Area, so I can't speak to your specific market but I can say that in high cost areas the key is to find off market deals. An associate of mine right now is focusing on networking with probate attorneys in order to get access to homes whose owners have recently died. I suggest developing a strategy for focusing on a specific sort of property, like my friend is doing. And remember, networking is key. Try a BNI or Rotary group. 

Senate leader Mitch McConnell has called this bill "dead on arrival" to the Senate and the White House has broadly condemned this bill as focusing on a partisan wish list rather than focusing on the needs of the current crises. I have never been more grateful for the checks and balances in our constitutional system! 

As someone living in the Bay Area, I totally agree with this perspective. Housing is just too expensive, and so people commute to work each day - 40, 50 even 100 miles EACH WAY is not uncommon. Increased telecommuting will greatly ease the burden of living here. Even for those who wish to stay, having a long commute a few days a week, rather than every day, will be a tremendous benefit. 

Remember that a property manager is not just an expense, it is also a key to asset protection. If you manage the property yourself, you are directly liable for anything that happens on the property. If you hire a property manager, that helps create a shield between your personal assets and the property. If you do self-manage, be sure you have excellent insurance on the property. 

Also, consider a virtual management software platform like Hemlane. This allows you to manage the property remotely but use a local team for showings and repair, etc.