All Forum Posts by: Greg Scott

You are correct that if you have silent partners (LPs), you would need to set up a syndication.  

Your operating agreement would have to specify exactly what you can do with those monies.  Your SEC attorney can help you with the details.

Typically you would have one LLC that owns the properties and another LLC that acts as manager. How you hold your your shares in the ownership LLC is up to you. You could use an LLC, Trust, personal name, etc. In other words, your personal holding company isn't terribly relevant to the discussion. Use it or don't, it won't change the rest.

Hopefully you never actually have to make a claim. Insurance proceeds are typically provided in a check that must be endorsed by both the policy holder and the mortgage holder. Will the mortgage holder sign off if the proceeds go to an LLC that isn't their borrower?

Wow, that sounds like a mess.  That is a significant (18%) difference that needs to be cleaned up. That will be a process.

If I were the injured party, I would be reaching out to the owner, title company, seller, and /or the developer for compensation.

If you are the current owner and renting out the space, you can not claim ignorance of the issue.  I would fully disclose the discrepancy.  This may result in lower rents and recoverable expenses, but it avoids a future lawsuit against you.

The law doesn't say "you have to be selling".  The law says "any commercial messages".  You must allow the recipient to opt out.  Here is a source.

https://www.ftc.gov/business-guidance/resources/can-spam-act...

This is my personal opinion, which probably won't be popular.

If you are worried about the cost of hiring an attorney to create a proper operating agreement for your LLC, you probably don't need an LLC, and if you choose to use an online site to create an LLC, you probably get the protection you paid for.

In a typical home or apartment, HUD guidelines have been two people per bedroom. Babies area gray area.

You can set up an LLC in whatever state you want. If the LLC owns a property in a different state, most of the time, the other state will require you register your LLC as a foreign LLC. (Foreign to the state, not the nation) Furthermore, they typically require you to have a registered agent. They want a mailing address in the state where the property is.

Great post. I would add that the problem extends beyond Class D properties.

Twice I rented B class rentals to Section 8 residents.  In both cases after they moved out I had to spend a lot to bring the property back to its previous condition.  Those rehabs used up all the cashflow I had from their tenancy.  I made zero profit from operating the property.  At least I got good appreciation from those properties.

These days, many state governments are trying to force more landlords to accept Section 8.

Cleveland must have been #7, right?

I read your post a few hours ago and started thinking about. 

I've paid for a handful of programs over the years from cheap to expensive and narrow-focused to broad-based.  It would seem that turning a real estate training program into a successful business is very difficult because most of them are not around any more. 

The ones I've found have the best value were ultimately side-hustles for the founder, and they were making most of their money from their real estate.  Investing was their main focus.  Their side-hustle was helping others become better investors.   Cost was not as much a determining factor.  I got great value from a $200 course on how to use Quickbooks for managing SF rentals.  I also got great value from a very expensive course on how to properly buy & manage residential real estate.

Regardless of cost, the ones that offered low value were the ones where the founder wanted to sell education as their main business.  One middling program I got into, I later learned the founder was trying to get out of managing real estate because "it was hard" so he decided to teach real estate investing instead.  Since he clearly wasn't very successful at real estate, I'm not sure why he thought he would be good at teaching it!  Of course, he flamed out after a couple of years, but he followed some of the path you outlined.