All Forum Posts by: Charles Carillo

@Nikhil Mascarenhas

A couple of years back, my wife and I set up a very in-depth asset protection plan. Feel free to DM ME and we can discuss. I am not an attorney and I do not want to provide specific details in a public forum.

@Raymond C West

I always have an attorney do it for me. Typically, there are attorney services in your state that only charge a couple hundred dollars to form an entity. If you have a real estate attorney you use regularly, they normally will do it for a low price as well.

@Blake Dials

I don't think it matters for taxes (I am not a CPA), but I would definitely set up a separate bank account specifically for your rental property's finances. It will help you with bookkeeping, accounting, and taxes.

@Abe Imdieke

You can craft the seller financing over many years. This will break down their annual tax liability. 

I have found that there are 3 main parts to a seller financing deal: down payment, interest rate, and price (4th would be the term). When speaking to the owner (building rapport), your main goal is to figure out which of these main 3 is most important to them. Once you learn this, you can tailor the offer to meet their needs. For example, if they really want $500k for a property, maybe offer a purchase price of $500k but a lower down payment and interest rate (and a longer-term). They are getting what they really want, and you are crafting the deal to where it will still make sense for you.

One potential issue is if what is most important to them is also important to you. For example, if they want a large down payment, and you only have enough for a 5% down payment, that is an issue. Or if they want a high-interest rate, and your numbers will not work at that interest rate, or if they really want a crazy high price where it will be difficult to cash flow and refinance in the future. This is where you need to really start working the numbers, but hopefully, you can craft a deal around what they want.

@Aidan Cullinan

First, I would refer to the current lease with the tenant to verify that they only pay rent for the ground-floor unit and nothing on the second floor. I would then contact the tenant and explain your plans for renovating the second floor, etc., and tell them you want to start in the next 30-45-60 days. I would probably try to speak with them face-to-face or on the phone and finish the conversation by telling them you will send them a formal letter shortly with the exact date after you talk with your contractor/partner, etc. See how they respond to this information. 

When I send the letter, I will send it certified. This way, they understand that what you said on the phone is actually happening, there is a formal date, and you are serious. You could also add a couple of local contacts for storage places they could utilize.

They might respond by asking how much they could rent the unit for; I would avoid this. They will most likely not pay what you could make with a different tenant and a renovated unit. Every time I have rented an on-site storage unit or garage to a tenant, I have always gotten less than what I could have gotten if I had found an off-site tenant to lease the unit.

@Robert Dunbar

I would check their lease and see if any language covers this. Either way, you must contact them to explain the situation and see how they respond. They might be open to removing the vehicles. Maybe tell them it is not permitted by your insurance. The sooner you reach out, the better when an issue like this appears.

I would also check with your city. It might be against the law to repair vehicles or have them in the yard, on the grass, etc. We once had a tenant who left their totaled and unregistered car at our property, and they would not move it. We called the city, and the city put a sticker on the car saying that you could not keep unregistered vehicles on the property and that they would tow it in a week. He hurried up and sold the car for junk.

In the future, I would add a clause to future leases prohibiting the repair of any vehicles on the property.

@Mike Campbell

Setting up an LLC in a state with LLC anonymity is great for protecting your privacy; however, privacy is really the only additional thing you are achieving. It will not protect you or deter your property from getting sued. If your LLC is sued, you will be required to defend the LLC, your name will then become known, and the plaintiff's attorneys will amend the complaint to include you. Suppose you are personally sued; during the discovery process, you must provide information on all of your income and assets (including your LLCs in any state (with or without anonymity). Anonymity is great, but it only does so much.

I am not an attorney. Speak to an attorney before making any decision.

@Gp G.

Most real estate websites (like Zillow) allow you to post your home FSBO. Other websites you could post on: ForSaleByOwner.com, Facebook Marketplace, Craigslist, Houzeo, Unreal Estate, Isoldmyhouse.com, HomeCoin, Beycome, Fizber

In the listing, mention that you are selling it as is. I would also spend money on a professional photographer. It will go a long way.

@Peter Christensen

It is great that you are being really thorough with your tenant screening. I have never called a reference before in my life. It is pretty easy to find 1 to 2 people who say you were the greatest tenant ever. 

Typically, the easiest way to verify this is to request additional documentation. Request a copy of her ID (if you have not done so already). Ask for 1-3 months of their most recent bank statements. It is hard to edit bank statements where the name, address, font, and spacing line up correctly for multiple months; usually, they are slightly off. If they look fine, do you see her employer's name there making deposits? If you still are unsure, have them send you a copy of their most recent (FPL) utility bill. Most fraudsters are not going to go through all of this.

@Anthony Prilo

It sounds like you are trying to transfer a personal property into an LLC since you are now making it into a rental property.

When I did this, the real goal was to transfer ownership to the LLC but maintain the current (low-interest) loan. I did this by working QuitClaiming the property into an LLC that my attorney had formed. Many people online will tell you you can QuickClaim it yourself (which you can), but I always use an attorney.

Your first step is to speak to your CPA and then to your attorney. Usually, there is no taxable event if the LLC owners are the same as the current property owner. This being said, I am not an attorney or CPA, and I would suggest you speak to both of them prior to making any decisions or changes.