All Forum Posts by: Steve Smithy

Well a bank isn't going to lend to a LLC with no history or assets, and since the IRS doesn't consider a LLC a separate entity the bank might not either. Meaning you will have to get the loan in your personal name anyway, especially if starting out.

Well you can certainly increase the deposit to at least match the 1 month rent, I think you could make the new deposit even higher for sure to be whatever you want (whether they want to pay it is another matter).  It might depend on your state though, the max deposit amount.  

There is a certain amount of wear and tear expected when renting, which you can't charge them for.  You can just say you don't want to renew their lease and find new tenants, which is likely a loss of at least 1 month rent.

They should be acting as a hard money lender IMO.  Otherwise they are going to be listed as the owner and not you and they will get the gains.  But why would I let someone who doesn't have any money in on a deal?  At best I would pay them a finders fee and then get a property management company.

You mean to rent it out?  I've never bothered with an open house for a rental, just show pre-screened tenants as they come that way I don't waste time with unqualified renters.

I don't know that they always have to disclose it, but the bank would have to clear all liens at closing I believe at the auction.  The bank's starting bid is usually how much is owed.  I'm curious to hear how you figure out how much the bank owes too!

Typically I would look at the history and see when the person purchased the home, then look at what bank rates were at the time, then use a calculator like the mortgage one at drcalculator.com to figure out how much they owe since then.

Well first of all you have to account for taxes.  If you have a $800k gain you are going to be paying a few thousand dollars in taxes for realizing the gain, plus paying back depreciation.  You should definitely talk to someone that knows more about this first, I recommend Marina from reaccountingpro.

My personal opinion is that any way to NOT involve courts on this is going to be faster/cheaper/better for you.  MA has very tenant friendly laws and people can try to game the system as much a possible, I've heard some horror stories from friends of friends about bad tenants that were able to stay in an apartment for over a year WITHOUT PAYING RENT!

The good news is, you live in the space with this roommate, so a judge will be more lenient with you as this person is directly impacting your home/life.  But this will take time, months most likely, before you get to court.  You'd have to file an eviction notice and you can find lots of other people talking about how to do that here.  During this time she might not pay rent either.  In the future you might not want to bother with a roommate rental agreement because without that agreement you could evict almost immediately!

But in the real world, any way you can get this person out of your house sooner is better for you.  I'd try to not offer money or anything unless a last resort because once they learn they can get money from you they will likely try to extort more.  Playing the social justice crap of roommate meetings to talk about stuff that doesn't matter makes me think this person is likely to try to play games.

You might try to be helpful and do some searching for/with them, print out listings that are in the price range as what she is paying you, etc.  Just phrase it so it comes across as helpful and not get-out-of-my-house sort.  Hope it helps!

Well if they won't try to come after you when she moves out for not paying the bill then let her deal with utility company!  I'd just give her advice on talking to them to try to get them to waive it due to the leak, but ultimately its her problem.

You already "gave the mouse a cookie" by paying part of her bill so she will likely try to be entitled to think you owe the rest, stand firm and don't pay anything more.

In your area is it the tenants legal responsibility to pay water bill or not?  Around here it is the property owner since they can attach a lien!  So in my area even if it were in the tenants name the owner is still liable in the end legally.

Not all areas are like this though, so if the utility is attaching the bill to her name then it isn't your problem.

Ignoring the bit about why would a credit card company give a brand-new entity a $50k line of credit, I think the question about "was any part of this loan borrowed or financed" mean you wouldn't qualify for a loan.  And if you did lie and say it wasn't borrowed and they found out, they would call the loan due immediately since you have no actual equity in the property.

There is no magic way to get free money that I know of, wish there was though!