All Forum Posts by: Todd Bayer

I wouldn't pay more than $600/year for a policy. It should include "loss of rent" in the event the house is damaged and cannot be occupied. Also, make sure there is coverage in there to pay rent for your tenant at a new place while yours is fixed. I do not have anyone to refer you to in Dallas, but if you know any mortgage brokers that work with investors, they should be able to refer someone to you. Good luck!

The simple answer is if it is attached to the house by bolts, screws, hard wiring, pipes, nails or any other way to "permanently" attach it to the house, it becomes a fixture which is part of the real property. A refrigerator that simply plugs into the wall is not a fixture, but if it's a built-in refrigerator with cabinets securing it in place, it is now a fixture.

Tommy,

I can appreciate your enthusiasm, but in large commercial deals such as a casino, there are MANY more facets to the deal than with a residential deal. I am not trying to discourage you, simply trying to show the harsh realities. There will be attorneys involved for sure, you MUST have one -- there is no exception to this. You can very easily put yourself on the line for $1B and if you don't come up with it, there is a team of lawyers working for the seller that will get everything they can from you. In addition to that, the number of buyers who can easily spend $1B are harder to come by than a residential buyer who can afford to invest $1M. Also, when it comes to things like casinos, it's more than just the real estate and land you're selling, there's another category called 'fixtures' you should look into and also all the other shops and restaurants that may be leasing space inside the casino. There's possibly a hotel involved which may be another entity. This is just the surface. To move a property of that size in a month is beyond optimistic. You'd be lucky if you closed a deal that size in 6 months. The buyer would want to look at every possible detail of the deal which includes documentation for every square foot of the land/structure. This paperwork alone could take quite a bit of time to go through. The reward could be tremendous but in my opinion, it would require more than just sales skills/rapport with the seller. These are the types of deals Donald Trump structures. He can move them because of his vast influence and network. He has a reputation to go with it. That is something that doesn't happen overnight, it takes a great deal of time and experience to get to the level he is. But, on the bright side -- it's definitely not impossible and I hope one day to be reading about Tommy R in Forbes, The Wall Street Journal, Time, etc... Good luck!

-Mike

Makes sense to me! That sounds like a great idea.

I will get on the phone. Thank you for posting this information you guys! I don't get it, if I had the billions (or even millions) of dollars right now, I would be making loans left and right. My (imaginary) bank would cash in on how scared everyone else is to make loans.

Hello everyone! Today, I'm looking for someone who can do conventional purchase financing on a non-owner oc triplex in Southern California. Here's the catch, the purchaser has 4 mortgages currently and is hitting a wall because we're being told the banks won't allow more than 4 -- but Fannie Mae says 10, can anybody refer us somewhere or do this loan? Thanks!

Clint,

Believe me, I fully understand the length of time for building corporate credit. In the example I gave above, I would not be the secured party, it would be another corporation -- thus making the transaction between unrelated parties. Isn't part of the verification process a bank would do is check with the secretary of state to see the corporation's assets?

Clint,

I appreciate the response! I actually wasn't very interested in the strawman related stuff. I was more interested in what the UCC-1 form is actually used for. I've heard many strategies related to building corporate credit by securing assets within the corporation with UCC-1 filings. For example, let's say I own a car, it's paid off. My corporation could take ownership of it by filing a UCC-1 form, give me (personally) a loan in exchange and meanwhile the corporation now has a new receivables account -- which looks good to potential creditors for the corporation. I will have to make payments on that loan and I definitely don't want to default otherwise the corporation will become the owner of the vehicle through repossession. Does this sound correct to you?

Does anyone in these forums truly understand the benefits of having C-Corps and utilizing the UCC-1 form? I have just been told some very intriguing information and I would love to discuss it with someone further. PM me or respond to this post. Thanks.

Why not just have your C-Corp buy out the LLC? The LLC would stay on title and there would be no transfer. You would avoid pretty much any negative situation. The C-Corp would then file a UCC-1 with the county showing the C-Corp as owner of the LLC (and all of its assets).