All Forum Posts by: David Miller

Najee - I am in NC and NV's laws may be different but condos are very different legally from SFR...a condo unit is the space within the walls of a unit. Everything else is either limited common area/elements or common area/elements of which you own a certain % in conjunction with the other condo owners (who also own a certain %). these common areas are maintained by a condo association. ensuring the condominium was properly created, the condo association has competent leadership & is properly funded, the condominium has strong declarations/rules/regulations that are enforced, etc. are important due diligence questions. You also want to do your homework on the property manager who is taking care of the common areas. All of these parties can affect your unit's value and your ability to rent the unit. in SFR you are purchasing the dirt and its improvements (i.e. house, etc.). You may have a property manager for your SFR but it will be one that you choose. you may also have a homeowner association with SFR...same types of questions exist for the HOA as does the condo association. Bottom line: I find condos generally are more complex assets and thus require more skill to identify, assess and price.

No quit claim.  Use standard purchase contract and include addendum with seller financing terms.  seller should give you warranty deed conveying title and then you record the mortgage.  

Deed in your name. You sign a promissory note promising to pay seller at terms negotiated and give the seller a mortgage on the property to secure your promise to pay the note. Seller may also want an assignment of rents and leases as additional security but that is negotiable.

Getting a LLC is about protecting your downside. The liability protection of shielding your personal assets is worth the nominal fees associated with setting it up and maintaining it. A single member LLC is a "disregarded entity" for tax purposes (meaning you do not need a Form 1065 or schedule K-1 for your tax returns) but you will need an operating agreement, to keep annual minutes and to setup separate bank accounts in the LLC's name. The OA is important because it provides for what happens if you die or become disabled or, if married, divorce....it also helps ensure the LLC is separate from you and not an"alter ego" of you (which would allow for a piercing of he corporate veil).

It means (assuming they were properly filed and perfected) those are liens (a form of security interest granted over an item of property to secure the payment of a debt or performance of some other obligation) against the property - they should be paid by seller prior to or at closing. If they cannot be satisfied and released as a lien against the property by the seller prior or at closing, do not close.

I am a current investor looking to invest as a passive equity partner in MF deals.  I am a also commercial real estate attorney in the Raleigh-Durham area with a statewide practice.  My longer term goal is to sponsor my own deals.