All Forum Posts by: Bill S.

So one of the purported benefits of having title in an LLC is that it makes it more difficult for someone to determine how much the value there is if they were to sue you. For example someone trips and falls and hires the "strong arm" to get them "the money they are owed" the strong arm does a quick asset search of what is owned by the property owner (the LLC) and nothing shows up. The strong arm then tells the slip and fall sorry "no case". It think it is a bit overstated as there are ways of finding out. It takes a bit of time but unless you have some great legal advise and follow it precisely, the promised anonymity is not there in most cases.

@Derick Jennings welcome. Lots of good info here and at a good price too. If you have questions, search the forums as most questions have been asked already. After that, get out and meet some folks at the local meetups.

@Forest Wu any of the top 3 organic results from a Google search for "eviction attorney denver" should do the job. I know Tschetter Sulzer (the top organic result) does at least 80% of all the evictions along the front range. They have a lot of free info on their website as well. 

Reach out to the top three and see which one is the best fit for your situation.

@Nicole Heasley Beitenman it does not matter how long the lease is. If they live in the unit more than 12 months you can only remove them if they violate the lease. That is if you renew their 11.5 month lease for another 11.5 months you can only evict them for a violation of the terms of the lease (aside from a few unique carveouts such as you or a family member moving into the unit). There are no legal loopholes in the law. Many times, however, tenants "go bad" and once they know they have passed the 12 month test, then their good behavior might wain a bit and you are stuck with them. 

@Mark Elfving welcome. Come on in, the water is great.

@Jack Berg another approach is to search the MLS and locate the product for sale or sold that you are wanting to do. Do some research and find the agents and owners of those deals and reach out to them. At the same time you can go to the local building departments and find the plans for the projects and get the GC info from that as well as the architect. The architects also probably have a pretty good handle on the costs of construction because their plans are getting created for a certain price point.

If you don't find what you are looking for, then it is a very solid bet that it's not economically viable. I really haven't seen any build to rent 2-4 unit properties. Everything I've seen is townhouses that were built to be sold directly to consumers and when the units couldn't sell individually, the developers cut their losses and sold to out of town 1031 buyers looking for an easy button. I have no idea if they are getting the proforma rents peddled by the listing agents. I have my serious doubts though.

@Jon L. yes you can still evict "for cause". Not paying rent being chief of those items. The new law re-writes the eviction process by placing more hurdles (procedures) in the landlords path to re-possessing their property. IMO this is simply to create more opportunity/work for the attorneys representing tenants. The law reads, as I understand it, that it is not about the lease but the amount of time the tenant resides in the property. So to be sure, you would have to send ALL tenants packing at the end of the lease term and find new tenants. Any tenant that continues to reside in one unit for more than 12 months with or without a new or lease is protected under the law.

@Adele Tegger the way I understand the law, it would not impact a mid term rental unless the person lives in the unit for longer that 12 months (ie they extend their stay to the point that they have occupied the property for more than 12 months). Once they have lived there 12 months, they can stay as long as they want provided they don't violate the terms of the lease to the point that you can evict them for the violations.

@Rene Vizcarra so it is a bit confusing about your situation. If your current hard money lender won't lend more than 50% of the original purchase price, it means they don't see the value in the property either now or in the future. That is a huge red flag. Based on what you are saying it causes me to question whether or not the end product has the value that you see in it. Not saying you are wrong just makes me pause.

In addition, the fact that the original hard money lender has sold the note is another flag of caution. Some lenders to sell their notes but many do not unless it is a distressed situation. Still you might be able to get the new note holder to negotiate with you as others have suggested.

You mentioned having other properties. If one of those properties is paid off, then many hard money lenders will allow you to cross collateralize and increase the loan amount. 

I have used a hard money lender that will loan in 2nd position for the additional collateral to increase your loan amount on the subject property. These lenders are much fewer as it takes significant effort and additional funds to foreclose on a 2nd lien and take out the first position on the collateral property to get their money back. 

@Logan M. Hire a public adjuster. Insurance offered me $70K for my fire. AFTER paying the public adjuster the claim settlement came out to almost $200k. Also be ready for the insurance company to drop your coverage. 

One final thought, is it your insurance company paying for the damages or your neighbors. Me thinks it should be your neighbors. All the more reason to hire a public adjuster.