All Forum Posts by: Dennis Callaghan

No problem at all Aaron. I went through this process slowly and wish I found bigger pockets sooner to answer some of these for me faster. My weakness has been financing so I have been digging on here and became a member to see how to get myself to the next level, now I just have to make the leap....like I did buying my first rental. Good luck

You asked if your insurance would cover all potential liabilities and the answer is that you could never know. If something drastic happened at that house then you could be sued beyond your coverage, although that doesn't happen much it does happen to people. If something happened the LLC would be sued and not you personally BUT if as my lawyer explained that is not entirely true. If the lawyer in a suit against you can prove that money from an LLC was used to pay say your personal car payment etc then they can find a worm hole to your personal assets. You want to make sure you dont intermingle your personal things with the LLC. Some people who are larger than I even go as far as having a seperate LLC as a holding company to pull money from the property LLCs. If an LLC would make you feel more comfortable than I say do it because it does give you a level of protection against people going after your assets. So when you go to a bank or a credit union make sure they allow you to purchase in an LLCs name because most big name banks do not. That bank will make you sign a personal guarentee on the loan but the LLC will be the owner. The insurance and everything else will then be put in the LLCs name and go get a bank account in the LLCs name so rent can be paid to the LLC.

The only other reason starting with an LLC is appealing is the part where you transfer properties in your name to the LLC. If you own the house outright then its easy to transfer ownership from your name to the LLC but if you have a bank loan on it then banks will not in most cases allow you to transfer so you are stuck doing it anyways to protect yourself and leaves you vulnerable for a "call on loan". A call on loan is when a bank sees that you made a transfer of ownership from your personal name to an LLC and have the right to request immediate payment (30 days I think) to pay the mortgage off in full or forfeit the property. I hear that is very rare but it is in your mortgage contract.

You will def get mixed reviews on this subject but I own 5 SF rentals and I also just got an LLC myself 6 months ago because I rent to college students and I started having decent equity. Just starting out I personally saw no need having an LLC because the bank owned most of the house and I had $1M insurance coverage and after I got a few more I then added umbrella insurance on top of that. Unless you have a large amount of assets I would wait. I actually know a gentleman who never had an LLC and owned at least 40 multi-families and recently cashed all out after 35 years. I used my lawyer to do the LLC.

Ikanyeng, I will check into the specific licensed doctor/therapist locally, thank you.

My thoughts exactly Theresa. I understand Service Animals but they have made getting get an ESA Cert easier than getting a handicap parking pass, anyone can get it. Although screening is my best option as Thomas has mentioned I just feel it is not fair to my brother and should be able to get a doctor's note to cancel out or override that decision.

Good Morning All,

I have tried to find a clear answer on this subject and it seems like it is not in the landlord's favor. Under the Fair Housing Act an Emotional Support Animal is not a pet and it appears as though you cannot decline their animals. The issue I have is myself and my brother have SF rentals we own together and he is severely allergic to cats and mildly allergic to dogs and everything under the sun. Having these animals will literally force him from being able to walk into his own properties without jamming his sinuses up for days after coming contact with the animals. I know we can say no animals (and we do) in our leases but if they wanted to push their weight and show proof that they have an ESA certificate it appears as though there is not much to do even though he cannot be around them????

This is sort of a hold back on a decision. I own 5 SF rental properties and have gained some decent equity since the market has gone up and now I am a place where do I take the slow road and grab one every 8 -10 months or cash in my equity and go for the multi-family properties. I have had good success with my SF's because they are in a college community so I am unsure what to do.

This is sort of a hold back on a decision. I own 5 SF rental properties and have gained some decent equity since the market has gone up and now I am a place where do I take the slow road and grab one every 8 -10 months or cash in my equity and go for the multi-family properties. I have had good success with my SF's because they are in a college community so I am unsure what to do.

Mike,

Thank you for the clarification, well said. I would like your thoughts as well on structuring a HML. This person is a family member so I would like to be fair for both of us, knowing this will only be a couple of months and I would like to make it worth his while just enough for him to want to do this again in the future when in a pinch like I am currently due to purchasing a house 1.5 months ago but a deal hard to pass up?

Thank you Tara. I feel I could avoid paying points and do 10% until I get financing to pay off (should only take a few months).

The 2nd question was worded difficult  because I'm not sure how to ask so I will try to clarify: Because the selling bank wants all cash to purchase the property and I don't have I am trying to avoid having the person I am borrowing the money from buy the property,  and then I get a mortgage and pay that person back. Working with banks for traditional mortgages in the past (I could be wrong here) but it appears they just dont allow me to borrow money on the fly to buy property unless its family gifting it to me. Can I truly just borrow money from this person and purchase the property in my name and then seek financing from another bank to pay that person back with no push bank from the auctioning bank?