All Forum Posts by: Chris Howard

Hello all, should you keep flips separate from an LLC that holds rentals? If so, why? Other than asset protection.

Is the income taxed differently? I typically like to take title via Land trusts and have the beneficial interest go to the LLC ...is it better to have the beneficial interest go to individual instead of my LLC that holds the rentals?

Thank you for your replies... I am paying everything but getting reimbursed from buyer.

Can anyone recommend a site or free software that would give me a good way to track principal and interest from buyer?

I have a property that I sold and am now collecting note payments.  What are the best ways to track payments and escrow disbursements that can keep track of everything and generate reports to show the owner where they stand at the end of each year?

Vacation rentals may have a cleaning fee included...do some research on competitive properties on Homeaway.com to see what their rates and fees are if you are talking vaca rental.  for monthly rentals, you may just want to do some research on fees assessed by other property management companies...ask for a property management agreement and read it over...should give you a good start!

I don't want to speak to which strategy you should use for decreasing your costs, but I would recommend examining your tenant screening process if you are having to actually go through the whole eviction process that many times. So, with whatever strategy you take (LLC or Personal...def. pros and cons to each) make sure to run a background check and check with their prior landlords. Make sure their rent doesn't use more than around 30% of monthly income or you may be getting some no pay/slow pay frustrations that push you back into the eviction process.

Best Wishes,  

Chris

Thank you all for the advice, I appreciate your time and willingness to share!  I hope you all have a great Christmas!

Russell, it is in Lynchburg

Thanks guys...so far:

A.  Don't do Wrap Around mortgages.

B.  Consider setting it up on a Lease Option.

In this situation...if a lease with option to buy ...how would you recommend keeping track of payments and how the monthly payments are collected and applied toward the purchase?

Brian, I am not sure how FROR works with the lease /purchase?

Also, Anyone have experience in what to avoid when selling a property in this way?

I have a town house that has been for sale for about a year.  No offers.  I have another property where renter wants to buy this town house.  He has been good payer.  Says he has done a wrap around mortgage in the past as he doesn't like paying the fees and hassle of mortgage co.  wants to pay more toward principal each quarter to pay off early and save on interest.

He said he would set up amortization for 10 Years / 7%. Keep the property in my name and he would just take possession. He would also be responsible for reimbursing me for taxes, insurance and HOA.

How do I put this together properly?  I have talked to a couple of attorneys who just said don't do wrap around mortgages!  

Any help on how to do this well would be appreciated!