All Forum Posts by: Devin D.

Just spoke with RLS myself. I told them I was looking for trust because a series of LLCs while keeping assets separate do not meet the needs I'm looking for. I asked them if they could set up a business trust and personal trust, they said yes.... then proceeded to talk like the series LLC was a trust. I was expecting to speak directly with someone who would be knowledgeable.... all I got was a sales person. Who then like others said, wanted 150 dollars to talk to an attorney who then would give me a custom plan and a custom quote. Well I've had custom quotes ranging from 3k to significantly above already and it didn't cost me a dime to speak to their attorney. They would do so much more business if they just didn't have the 150 dollars cost upfront. I will personally be passing, doesn't sit well with me and the lack of knowledge doesn't build confidence.

@Spencer Spagnola dropped you a message in your inbox.

@Tracy C.   A few questions first.  1. Is the home being rented at market value? 2. Are you happy with the property management services? 3. Have you read the contract in place already?   Lets assume that you are not happy with the property management service and it's below market value and there is no issues with the contract in place.  Then there are a few things you need to do after you have a copy of the lease contract and landlord agreement (the contract between the owner and the property manager).  There is likely notices that have to be given for both most likely 30 days for the tenant and 60 days for the property management company.  Often especially with month to month leases there is a first, last, and sometimes security deposit collected.  If this is the case you need to know before you close who holds these funds.  Often times will be the property manager but not always, and you need to know what amounts.  The property manager should be able to give you the move-in inspection. With all that being said if it's not already been agreed you will likely be legally obligated to honor the property management contract and the tenant contract until you notify them or intent to terminate or terminate and resign under more favorable terms for yourself.  Congrats on the purchase, just make sure you have covered your bases with the seller and if you need help and don't want to use the same property manager I would recommend finding one you believe will represent you and your new asset well.  They can advice you on what you will need to know and obtain prior to closing.  It's unfortunately all to often information is restricted once a relationship is severed or is known that it will be.  This is why prior to close and notifying the current PM and Tenant it is important to get all the information you will need.

@Grace Thornton check out @Sterling White.  I've been fortunate enough to speak with him a few times.  A wealth of knowledge and I believe also has a PM company in Indianapolis. 

@Jordan L.  It likely is a little late for this but for piece of mind in the future I would recommend a few steps. 1. Umbrella Coverage 2. Get an account with LegalShield (It only takes one time for this to pay for itself and its always nice to be able to call up a lawyer and get advice at no additional cost) 3. This is a heavier lift and can be pricey but if you have considerable assets to protect... move them to a trust.  If you set #3 up correctly it can be a huge tax benefit if you and you will never have to worry about doing a 1031 exchange. If you use all 3 and stack them right, I've been told by my legal friends that most of the time a law firm won't even take a case because their is no assets to even get in the first place.  A claim against future income could be levied but especially with real estate most of us operate off of a paperloss anyway so there truly is no future income.  I should note I'm not a lawyer or financial adviser and this is not legal or financial advice.  Please consult with your qualified contacts in these fields. 

@John Lanser  When I was managing just my properties and was small Cozy which @Jason Duryea  mentioned already was great.  They were just purchased and truthfully who knows what they will turn out like but I was very pleased with them and it was free.  I've since switched over to Buildium and it has a lot more functionality, so if you are working with a larger personal portfolio or starting property management from the roots up then they are a great choice.  Like Cozy, Buildium was just bought and they are making some big changes that I think will challenge Appfolio when done.  Appfolio really is for those with 100+ properties. @Nick Paquet mentioned TenantCloud, I think there is a lot to be said for them, I just didn't like the user interface when I was reviewing options but if I recall there was a considerable amount of functionality and a hard to beat price.

@Kayleigh Poss I agree with @Mitch Miller.  You shouldn't need to be licensed to manage properties you own. I would factor in having an umbrella insurance policy, get a personal legal policy with LegalZoom.  Better yet, get those items and move all your assets including the properties into a trust.  Setting up a trust can be pricey but it's well worth it if you plan to build a large portfolio.

That's a great question Kenny.  I've done both.  Having just a few properties that you own isn't bad but when you start to scale the phone calls always seemed to come at the most inopportune moment.  To combat this I founded a property management company.  It certainly does take a large number of properties for it to be profitable, that profit line also depends on the market you are in.  If you want to focus just on investing, I would hire a property manager.  Find a good one and with 15 properties they will likely will work with you on price.  Piece of mine and protecting your time and asset is often worth more than what a property manager will charge.

Zillow rental applications leave a lot to be desired.  I understand the value to the prospective tenants.  I always have my tenants apply through my system.  I just cover the fees I'm charged.  So many property managers and landlords try to squeeze prospective tenants for just another fee and that is what created this opportunity that Zillow is capitalizing on. The biggest problem that I have with Zillow rental applications is the depth and detail.  All background checks are not created equal.  The screening of prospective tenants is one of the most important things a Landlord or property manager can do.  This is information that is vital and should be in depth and detailed to allow for the best decision possible to be made.