All Forum Posts by: Nat C.

Hi Christopher,

My company does complete architectural plans which are stamped by a state licensed engineer. We operate in all 50 states. We charge $2 per square foot, which I believe is the cheapest you will find anywhere. 

Please send me a message if you would like more details.

Miami-Dade County has one of the highest median property taxes in the United States but rents are also extremely high which does help offset the expenses.

The County uses a complicated formula to determine the property tax owed on individual properties, thus it's not possible to condense it into a simplified tax rate. Every owners property taxes depend on a variety of factors however it's ultimately at the discretion of the individual property appraiser who assesses your property, so it can vary significantly.

I assume the current owners are receiving the Homestead Exception, which you won't receive if you are buying as an investment property. Even if it was currently a rental property, the assessed value resets when there is a change of ownership so you can never assume the tax rate will stay the same when you are buying. 

Yes, you can appeal the property tax amount. Every year, the Tax Assessor mails out a Notice of Proposed Property Taxes to property owners after they have assessed and determined a property tax amount. This happens around August and you have several months to appeal it. It can't be an arbitrary argument, like you just feel the amount is too high. You would need to have a proper argument, such as incorrect facts in their assessment. 

What is the amount you think you will be paying and what are the property details? I just paid around 25k in property taxes for Dade alone.

Upwork is pretty good. You will find the best person for this job in the Philippines. They are very skilled in office work and there are many who specialize in real estate.

You would be paying $5-$10 an hour. You can choose someone based on reviews from previous clients. 

David,

It completely depends on the tenants circumstances. If they have a assets or a stable job with good pay, I would definitely go the lawsuit route and I would do this BEFORE they leave the property and you know where they are. In this case the Service of Process will be easy but once they have moved on, you'll then likely need to hire a skip tracer to locate them. It's quite arduous attempting to sue an individual when you can't locate them and serve them.

So if they have a good paying job, you can garnish wages or in the case of assets, you can put a lien on them and you'll get your money when they sell. Don't assume they don't own property somewhere else, just because they are renting. 

If they don't have assets or well paid employment, I would consider the offer of the payment plan. However you are under the assumption they are actually going to pay. I am skeptical that they will honor the repayment plan until the end. And in that case, you would still need to sue but then you can only sue for the unpaid balance of the agreement and you will have to attempt to locate the debtor.

I would make sure you have a clause in the contract that states that if they don't make the repayments as per the agreement, that attorney's fees, late fees, interest and some other penalties are payable. So at least there is some motivation for the debtor to actually continue with the payment plan. 

@Samantha Miller

Yes, absolutely.

@Miriam De Haro

The sellers offer was very generous because they have no legal obligation to provide anything.

It was your responsibility to do a final walk through on the day of closing.

Any lawsuit or legal action by you wouldn’t go in your favor.

I am really sorry this happened to you.

Unfortunately the world is full of scumbags who steal stuff from hardworking individuals.

@Samantha Miller

I think $3600 rental income is a little low for the capital investment (and time) required. Is there a way to increase this? If zoning allows you to build a triplex, you should be able to build a quadplex. Is this an area likely to increase in value a lot and what kind of people are living here? Is it a family orientated neighbourhood, students, young professionals or something else?

Yes, our company fee covers complete architectural plans, including MEP, fire safety and structural engineering and everything required for obtaining permits. The plans are stamped by a state licensed engineer and ready to send to the building department. We also handle any changes requested by the city for no extra charge.

@Paul Kuhn

You definitely need to change your ownership structure. Yes, if you are found to be negligent in your medical profession, and your malpractice insurance is insufficient to cover the entire judgement, then your assets will be exposed. Also you might be involved in an auto wreck, or your teenage son/daughter might be and then your assets will also be exposed to a judgement.

You need to set up an LLC in each state and deed the properties into the LLC's. A warranty deed is recommended over a quitclaim deed to preserve a strong chain of title.

You should set up a WY holding company to hold the LLC's. This will provide superior asset protection and consolidated tax filing. All of the income flows back to the holding company, so only one tax file needs to be filed.

Your concern about not being able to manage things if you're deployed is unwarranted. I would argue that there is less management required when holding assets in an LLC over your personal name. For each LLC, you'll be required to have a registered agent. The purpose of a registered agent is to accept service of process and official mail on your business' behalf.

Currently, you need to set up 5 companies, organize 5 registered agents and deed 4 properties. The fees for all of the above will most likely be under $1000 depending on the states where your properties are located. You'll need to pay annual maintenance fees for each LLC and registered agent. Again, this varies by state but should be under $1000.

The above information is not intended to be legal advice and is just my opinion.

I found a lender who does loans for non citizens, with excellent terms. The interested rate I was quoted was high 4s and 1 point, which is damn excellent. I will be doing a large loan through them in January. 

Message me if you want their details. 

It sounds like a great plan. The ARV is solid. Have you calculated the numbers for what expected rental income will be? At least with a new build, the maintenance costs should be close to nothing.

Consider partnering with another investor if you can't get financing?

My company charges $2 per square foot for architectural plans which are stamped by a state licensed engineer and ready for submission to the building department. So we can do the architectural plans for a lot less than what you've forecast.