All Forum Posts by: JR T.

It may cost you up to $5,000 depending on the circumstances. How are you acquiring the lien? Frederick County's tax sale was conducted a couple months ago the next one won't be until next year. Are you buying it from the successful bidder at sale? 

Be forewarned, in almost all cases where the value of the property exceeds the high bid the owner will usually redeem. 

@Will W. Based on my experience in that market with rentals like the one you describe in your example (albeit in much better repair at acquisition) there is zero chance of you seeing positive cash flow on your deal. Building equity is not really a great plan either considering the property values in Hagerstown are declining at 3% per year and their own city government promises future declines in the local paper. 

I have a number of rentals downtown in 2-4 unit buildings. If you'd like to get together with my PM to see what the challenges are like please don't hesitate to get in touch. You will have a much happier life with similar returns investing in better housing stock that rents to stable working families. 

@Ron S. You are misreading the requirements. If you purchase all performing notes you will not need the CA license to foreclose should one stop performing post purchase. You can contact the DLLR and they will answer any questions you have. 

Probably. There's huge value in getting rid of her commercial landlord beyond just the rents you'll collect.

Wholesaling can get you into all sorts of liability. Definitely an LLC or Corporation for you. Go to the Missouri Secretary of State website and you can find instructions and fee schedules.

Save up a big marketing budget. 

Not an attorney. Go review it with a Certified Financial Planner. One who charges by the hour.

Good luck.

@Rhiannon Then This is your property and you dictate the acceptance standards for it. The manager can make recommendations but ultimately they work for you. You need a reliable way to search for evictions in your state, deny anybody where any applicant has had even so much as an eviction filed against them and verifiable household income of minimum 3 x's the rent. 

You can find a stable multi-year tenant. You just have to go $50-75 below market and be patient. 

@Rhiannon Then The fact that you like her and want to rent to her despite warning signs is another reason to pass. What are you going to do when the rent is late? How about when family comes to stay for two weeks and you get complaints about noise? 

You can have either a friend who was your neighbor or a tenant. Not both. Transunion has an option where the tenant pays for the reports - why not order them and see if you can verify at least $2,500 in regular income, no history of evictions, ever and I'd say maybe chance it but honestly you'll still be giving up your friendship.

@Ray Ebert I'm sorry to tell you but having the LLC out of state does nothing to help you. The suit can and will always occur where the injury happens. Even worse if you do not have the required Certificate of Authority from the state you're transacting business in you can be sued but you cannot counterclaim. If you have a claim you cannot access the courts without the COA.

You can accomplish the exact same thing relating to your bank accounts by simply domiciling them in an out of state bank. USAA is a good one - one branch only in San Antonio and any judgment would have to be domesticated in Texas to be enforced. All other assets will be attacked in the locale in which they are physically located and it will be you scrambling to pay gigantic retainer fees for your Wyoming entity when getting sued at home. 

That company is nothing more than a promoter. The only true asset protection professionals are law firms with long reputations in the field. If asset protection is a serious concern for you I suggest consulting with one of them. These entities can be a bear to unwind and the time you have to do it is when you're fighting some other battle that triggered the structure's limitations. 

With the advent of the CFPB and a myriad of state consumer protection laws this method seems more a potential peril than opportunity.