All Forum Posts by: Benton Pruitt

Hello all - this is a complicated situation (at least to me) and I would like some advice for any other experienced attorney's and real estate investors.

I have a 21 Unit portfolio under contract, that is in pre-foreclosure and I am buying it at a good discount. The bank has agreed to the price along with the owner so we were able to go under contract. The bank from my understanding will be writing off a loss on this loan as there is not enough money to go around.

Here is where it gets interesting, there is a second lien on the properties from a seller of a hotel that the current owner of the 21 unit bought seller finance. obviously there is not enough money to get this guy paid off as the bank is already taking a loss. From what I am being told is that they are going to remove the lien on the 21 unit and move the lien to a different property the seller owns. 

My question is, with everyone taking a loss, the title company has reduced their fees, the RE has reduced their commission, and the seller will walk away with no money, how do I prevent getting to the closing table and someone (Either the bank or the other lien holder) deciding they do not want to remove the lien or take a loss. I am concerned on spending 25K plus on appraisals and inspections just to have someone blow this up at closing.

Is there any document I can get signed that could prevent this from happening? Should I seek legal counsel to ensure this is all coordinated through someone I trust? 

Any advice is appreciated! Thank you in advance.

Thank you all! Glad to hear that I can handle everything through one accountant!

Hi Valerie, thinking about these things and asking for help is more than what most people do. I would say you are on the right path :)

It is hard to give you an good answer with so many details that would impact your personal risk (Condition of the property, loan amount, cash reserves, expected cap ex, personal liabilities, etc).

My thoughts are that selling it may be a bandaid, you mentioned that the move was in early 2022 which I assume was expensive, but did other emergencies come up over the last two years that prevented you from building up your emergency fund? 

Overall I would do everything I can to keep that low interest rate debt, but at the end of the day you have to asses your risk tolerance and determine what will help you sleep at night.

Good luck, be encouraged that you are proactive and doing your best. I am sure it will all work out.

Feel free to PM if I can be of any further assistance.

Hi All - Looking for advice on where to start with CPAs.

I am a member of a multi-member LLC registered in Texas, I own properties in Oklahoma, and I live in North Carolina.

I have W-2 Income in 5 different states due to frequent travel.

My question is do I need a CPA in Texas and Oklahoma for the LLC? Or can one CPA handle my Oklahoma and Texas business activities? Can one CPA handle all of this, personal and business?

Also will my CPA be able to assist with sending out 1099s to contractors? Or do I need to take that activity up myself?

Thank you in advance!

Hi All - Looking for recommendations for a lender in NC that can assist with a first time home buyer purchase in NC. Looking to use an FHA Loan. Can anyone provide any recommendations/feedback with any banks/lenders in NC?

Thank you in advance!

Quote from @Alex Pelletier:

Hey! Here's a list of tools you can use to automate rent collection and other aspects of your business. Hope these help! Check each out as they all offer different things

• Property management/rent collection: Avail, Innago, Apartments.com, Hemlane, Turbotenant, Rentredi, Tenant Cloud, eRentpayment, zillow rental manager
• Rental accounting tool: Azibo, Stessa, REIHub
• Rental banking: Azibo, Stessa
• Move-in/move-out inspections: RentCheck

Hey Alex, this is really helpful. I have been using innago and manually entering every expense for 11 units, huge waste of time, but I am a detail freak and like to know profitability by property. I just noticed Stessa has an api with banks so transactions are automatically imported which is really convenient. Any reason you do not have stessa under your list for property management? Is stessa on the property management side not as robust?

Thanks for the advice Terrel!

Just bought a lot with two houses, low income housing. Both leases state that the tenants pay their own utilities. Both tenants and seller signed an estoppel letter stating no amendments to the lease. Turns out all utilities are in the name of the owner and he has been paying them. To me this sounds like a misrepresentation and this severely impacts the profitability of the houses. Do we have any legal recourse?

Bought his course and while it is not the most detailed information ever. It is what you need to get started, he is quick to reply to questions, and makes it easy to understand. 

I probably would not have bought my first property without his guidance.

Hi All,

I am a new investor in the Lawton Oklahoma community. If there are any other local investors here that have insights or information important to lawton I would love to hear. Additionally, any investor focused realtors please reach out. 

Thank you in advance!