All Forum Posts by: Ben Kevan

I went through this with my first property purchase. The tenant wasn't Section 8, but was partially subsidized. After their portion came to 75% of net rents they stopped paying. Collection of rents from the subsidy continued, but worked closely with their social worker to file the complaints, which lead to a court eviction. I was very happy at doing this early in my real estate experience, because it got the "biggest fear" in the newbies minds, behind me.

Hal,

Don't just talk to them. Read your local laws with eviction, and don't start the process without a written notice several days in advance (this is typically the very start, and it must be in writing). I'd recommend putting it ON the front door, and take a picture OF the note WHILE on the front door as evidence / proof.

Maybe it's quite possible that people who were not adequately protected no longer have assets or the drive in REI to come onto an REI board and share their experience.

It's hard to say why people don't have more first hand experience, but I think pposting a comment like this, will not help your cause in trying to find someone that has.

This shouldn't be used by anyone else as a blanket LLC use case.

It'll really depend on a case by case / state by state liability decision.

Consider 80 properties worth 30k vs 80 properties worth 1M.

BIG differences there.

Each LLC should have their own account as they will have different EIN.

You should not co-mingle the monies from your LLC to pay personal bills, only bills related to the associated property.

You can pay yourself out if you wish, but DO NOT directly pay bills with LLC checks. Write checks to pay yourself instead.

I'm personally trying to figure out where it'll be financially smart to purchase an LLC. Currently my 2 duplexes are out of state, and luckily because the costs of that states LLC's are MUCH MUCH less than California.

I just need to understand where things get sent (do they need to be local addresses, or can I have things sent directly to a PO BOX in my area).

I'm not sure how the LLC played a part in this? It seems as though it was all covered by insurance, which would have been done if it was held in name, or LLC if adequate insurance was carried?

Which book is this? I'd be interested in reading it :).

I'm interested in knowing the outcome also.

That's the ONLY problem I've had. Sometimes I get the payment a few days later then I'd like, or what's in our contract.

After 2 months of that, I asked if we could amend a clause for penalties for late payment to me from my PM for dues already collected.

I was informed that they'll make sure payment goes out on time, or they'd inform me prior to the date if it will be a few days late (for the reason of final sign off is out of the office OR if I have a pending repair that should be deducted).

I probably annoy the living hell out of my property management.

As others have stated, I first started with letting them know my exception. Prior to purchasing my out of state properties I first made sure I found a property manager that I felt was trustworthy (this was a long process).

I email constantly, even if it's small talk (i.e., discuss the recent earthquakes) to make them realize I'm a real person, and if they feel I'm not disconnected, they'd be less likely to try and rip me off.

I also make sure they provide invoices for any repairs, no matter how small of how big. I've also had them have the maintenance guy call me directly to discuss the issues, to see how they align with the original diagnosis.

Sometimes all these horror stories makes me want to become a property manager.

I have found this to be my very welcome addition. I spent about $200 to add Gas / Electric / Water lines in the basement for washer / dryer hookups to BOTH units (and remove Coin-Op) and immediately after that, the interests increased.

Welcome. From Fairfield myself.