All Forum Posts by: Account Closed

@John Corey we both have money in the deals, and distribution of equity/profits is documented in the LLC that retains ownership

So question is, how do we secure financing without falling into the 2 pitfalls mentioned in my original post?

Been running into this issue, I am purchasing homes using funds from a partner, who is strictly providing cash and does not want to be hands on in the process. 

The issue is, conventional financing for investor homes does not allow for 'gifts' to be used on the down payment, so my partner can't simply give me the money for me to go take out a loan. To get around this, either:

1) I need to have the funds in my account 2 months ahead of time, so they can 'season' and I don't need to provide sourcing for the funds. This hurts our ability to move quickly.

2) I would need to add the partner to the loan, which we want to avoid.

What do you all usually do in these situations, where you want to use other people's cash and take out a conventional loan on an investor home?

Thank you all! Based on the feedback, what I'm leaning towards is asking for a pet deposit in order for her to keep the animals, and then non-renewing the lease in 3 months. 

Really liked the comment from @James Wise, I'm running a business and I need to think about the bottom line, not just what I feel is 'right' and 'wrong' on principle. The reason I came here for feedback was I wanted to make sure I didn't make an emotion-based decision, so I appreciate everyone's help!

Hello!

I have a tenant in one of my duplexes who told me on her lease application she only planned on having one small dog on the property. The lease contract says explicitly NO PETS unless otherwise put into writing. I gave her a verbal handshake agreement that she could keep the one dog (did not put it in writing for her).

A few weeks later, her neighbor tells me she has more than 1 dog and several CHICKENS on the property. When I called her, she said she has only 3 chickens, keeps them in a coop, and uses them for the fresh eggs. When I told her the chickens need to be removed, she went and got a note from an online doctor to make them qualify as emotional support animals (the note uses the words "Chicken" and "animal" in singular, not plural, i.e. should only cover her for 1 chicken). I did an inspection without her knowledge or presence yesterday (this is allowed in my lease), and find out she has 3 dogs and 6 chickens, all wandering the backyard un-cooped.

I am ready to evict her. I believe I have grounds for an eviction since the lease contract says NO PETS, and her ESA note only covers 1 chicken. Even though the chickens are kept outside, and the house was in good condition when I inspected, this tenant is consistently lying to me, and taking steps like getting an ESA note instead of complying with my requests. My question is, should I pursue a removal/eviction here, or just let it go since the rent comes in on time and the house is in good condition? This is a short term lease, expires April 30th 2019.

If the soil near the foundation is not getting enough water and dries out, it may cause issues with the foundation settling. 

I'm currently living in a new-build home that I may be putting up for rent in a few months. One concern I have is that if tenants never water the lawn, there may be foundation issues at some point in the future. 

First solution that comes to mind is to install a sprinkler system, but of-course there is no guarantee that tenants will use it. I could install a WiFi system and lock the control box, so only I can control it from my phone (so that tenants will have no choice but to water the lawn) but I could see tenants getting upset due to high water bills.

This is solely about mitigating foundation issues for me, not about keeping a nice looking lawn. This is not an upscale neighborhood, plenty of people have average lawns, and the cost of re-sodding when it is time to sell is not that bad. Only goal is to avoid expensive foundation problems. What are you all doing in these situations? 

Working on a Duplex deal with myself and a partner. I am considering living in one side of the Duplex for a year, which is the minimum required to get a residential loan. I'd like the residential loan so we can come in with a lower down payment, and lower interest rate is a plus as well. I will also be the one managing the property.

Since I am occupying one side for a year, how would you all recommend we structure the first year of the deal in terms of how we both cover expenses/claim cashflow? Do I pay full rent to our partnership so that the investment remains the same on paper as if I wasn't living in it? Do I give my partner some form of credit in later years? Do we just bite the bullet and not cashflow in year 1? Should I ask for a little extra equity?

What have you all done in this situation?

Working with a limited partner on an upcoming SFH purchase in Austin. Partner lives out of town, and is only a money-man. We are splitting the down-payment 50/50 (~$20k each).

How can we structure this mortgage process so the partner has to do minimal work? Right now we have both of our names on the loan, and it's causing my partner to have to spend lots of time submitting documents, and will require him to come in from out of town to sign the closing docs. Want this to be an easy process for him so he is not deterred from doing more deals in the future. 

I am ok with having only my name on the loan, as long as only my name is then on the house, which my partner is ok with.

We considered having him just gift me the funds, but I believe there is a tax incurred on gifts greater than $14k. Any other ideas on how we can minimize work required on his end/potentially not have him on the loan?