All Forum Posts by: Connie Steele

I understand most of this.  But in these documents it looks like I have to get permission from the lender to purchase other assets,  dispose of any assets, change in our current business, etc.  These are  not assets or anything that is tied to the purchase of the duplexes.  The duplexes will be their guaranty but it sounds like we are tied to them for everything in our lives.  Maybe its all standard, it just sounds bizarre, but then again I haven't had a commercial loan before. 

we are purchasing a 16 door unit.  Received loan docs and there are the following conditions.  Wondering if this is normal as its our first commercial loan. 

Provide yearly tax returns

Provide leases and tenants information and books every year

Contact lender if we change, sell or alter any of our personal or business assets for approval.  (Sounds to me like I have to ok anything we do personally with them eventhough the loan was done on the financials of the property)

We are supposed to close Tuesday and these conditions just came up.  I am hesitant but wondering if these are normal conditions for a commercial loan.  

Any information would be helpful. 

Does anybody use a website that does the Leases for you with all the clauses needed for that state.  For example, EZlandlordforms or something like that?  If so, which one do you prefer?

About half and half.  There are some that I will want to kick out and some I want to keep that are on a MTM.  The others that are on leases, I am assuming that I just redo the lease with the same terms as the current owners, but with our information?

We are acquiring a 16 unit property and 14 of them are occupied.  I am wondering if we do a new lease with the tenants that are currently with leases and how much information do you give them?  Your lease, your checklist for vacating the premises, etc.   Do you talk the current MTM tenants into a lease if they are clean and you want to keep them?

@DJ Young - So we have are looking at purchasing the multi family in OK and some properties in Texas. Do you advise having a separate LLC for each property, one LLC that holds all the properties and if its in two different states, does that matter?

My accountant continually tells me to just have an insurance policy and my attorney tells me to put it in an LLC. My CPA may have a different idea for a 16 unit property. I will ask him again. Problem is one tells you one thing and the other tells you another. We have only had SFH as rentals and never a multi unit.

We are purchasing a 16 door (actually 8 duplexes) multi unit property in OK. Not sure if we should form an LLC for liability protection or just have it in our names? Any advice and help would be appreciated.

Thank you. Yes she does have experience with rental properties. They are SFH and she used to run the property management business we are currently with. Her new company does not do property management, but she has been our realtor for quite some time. So to answer the question, yes she is capable of doing them. Thank you for the thought, that is definitely something to keep in mind.

We have just been notified that our property management company is cancelling our contracts (I believe because we are putting the houses on the market).  I am wondering what is the best / cost effective site to use for rent collection.  There are several listed, and eventually (in the next 12 to 18 months) we will be taking care of all our rentals ourselves.  Which one is the best?