All Forum Posts by: Dan Acampora

when I first got started as a Real Estate Broker in NY many years ago, the #1 term that was the "buzz" in the education was:

Caveat emptor /ˌkævɛɑːt ˈɛmptɔːr/ is Latin for "Let the buyer beware"[1] (from caveat, "may he beware", a subjunctive form of cavēre, "to beware" + ēmptor, "buyer"). Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. The phrase caveat emptor and its use as a disclaimer of warranties arise from the fact that buyers typically have less information about the good or service they are purchasing, while the seller has more information. The quality of this situation is known as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller.

A common way that information asymmetry between seller and buyer has been addressed is through a legally-binding warranty, such as a guarantee of satisfaction. But without such a safeguard in place the ancient rule applies, and the buyer should beware.

It is ALWAYS the buyer's responsibility to perform due diligence on ANY & ALL perspective deals or transactions. I can understand concerns voiced here, however IMO rather than censoring terms the discussions would be better served by explaining to the unsuspecting some of the due diligence steps to take. Education & Knowledge are the keys to avoid being "cheated" or being taken advantage of.

I was looking at using http://corpcomply.com for a Nevada Corp set-up. They have a package Including incorporation $194 and the first year Registered Agent $89 - which is a lot less than the last corporation I set-up. They were recommended to me by an old associate who got them through the TrueBuild Business Credit Program (a fast-track to establish a separate corporate credit file).

Has anyone had any dealings with CorpComply?

you may want to create an LLC or Corp for your "marketing" and be sure to include a "legal" section or link on your sites that defines the terms of use and disclaimers as needed but as Rick has stated, using your personal name would generally be considered a no-no.
I am NOT an attorney, so it's always good to check with one in the state you operate in.

"That's my opinion, I could be wrong" - Dennis Miller

It has been my experience that the LLC pass-thru can be used to offset other income/loss however as was suggested to me a long time ago - if you are combining flips (that you take title to) and long-term hold properties, chances are the IRS will group all and consider you a "dealer" and will tag all properties as short-term capital gains or the highest tax rate they can. It is better to compartmentalize similar type deals or transactions into their respective corporations or LLC's so that each would be treated accordingly ...

Please note: I am NOT an attorney or cpa, as always check with your preferred professional as it relates to your specific situation.

you could try

Rocconi
308 South 2nd Street
Clarksville, TN 37040

My wife Dotty is a Branch Manager for OneTrust Home Loans and has had several dealings with him.
I will be using him as well to set up another Investment Company in TN.

In real estate as in most things, knowledge is a good thing and will often help you in your decisions. I can tell you without a doubt that my training and education as it relates to the real estate industry including the years has saved and made me considerably more than I spent for the education. My background has enabled me to quickly spot and accurately determine the associated costs for improving or rehabbing a property as well as properly planning & executing my exit strategies. Just don't get so wrapped up in training that you forget to jump into some deals...experience is still the best teacher. That's my 2 cents worth...

I just added it to my calender, I plan on attending. Since I am new to the area, I am looking to meet other investors in the area...and I am always open to learning something new.

Lisa - I am very glad it finally worked out for you!

I always believe that every transaction is a chance to learn something new...I'm sure you have learned a few things on this. Please consider what I had posted earlier about using an LLC or a Corp as your "management company" - It really does help to provide an insulator between you and the tenant, and never let the tenant know you own the property. I had learned that lesson a long time ago from an old friend and mentor, I have had many a properties and many a tenant since then...and I don't ever "own" the property.

Happy continued investing!

Hello all - 

While I'm fairly new to the middle TN area, I have had a fair bit of experience, I'm really just setting up shop here now and actively looking to expand my network here as I build out my team. I actually am about half way between Nashville & Clarksville, so we will be working both areas pretty solid once I am up to full steam. Please feel free to touch base with me for networking or help.

Though it is a bit late for this situation, I thought I would share a few tips that I use and in doing so, have eliminated most hassles from "problem tenants" -

1 - Rule #1, Never let them know you own the property. I maintain the rental property in a land trust with one of my LLC's as the "management company", I simply "work" for the LLC. Since this allows you to distance the the owner from the tenant, it eliminates the sob stories most of the time as you are simply "doing your job". It also gives you a breather delay should they request anything, you can simply let them know you will check with the owner and get back to them.

2 - I have found in several jurisdictions that the courts will often side with the tenant over the landlord whenever possible (though this has improved in recent years die to excessive abuse by tenants), Many times it is difficult to collect late fees and security for damages even when the  lease violation or default is proven. Typically, when a court awards to the Landlord, they will allow for the rent only. What we do is actually include the late fee in the rental amount and offer a discount for on-time payment. For instance, if we want $950/mo for rent and a $100 late fee, the lease would be for $1050/month due on the 1st and offer them a $100 discount if received by the 5th. Sounds simple, but it works if you need to go to court.

3 - For SF properties, I typically do not keep them more than 2 or 3 years, as a result I will typically sell them as a rent-to own (with written agreements of course).
The advantage to this is:
1st - I let the tenant understand they are going to be "owners" here, they are responsible for the general maintenance and repairs of the property, we don't get the calls for leaky faucets, clogged toilets, etc.
2nd- In our agreement, the tenant forfeits any and all credits including rent credits and option fees if they are late on any month's rent payment (this one is subject to the "owners" discretion on enforcement - we have allowed an exception under specific and reasonable situations), this has proven to eliminate issues.

Again, obviously this is late for Lisa's situation - but hopefully it will be some help to others in the future.