All Forum Posts by: George Red

Hey Luke, good question and super valid... especially if they have been a good tenant for years. They may have hit a small bump and will be good tenants for another 5, I would not rush to throw them out. More tenured investors may go black and white but I would let it breathe... I'm relatively new to investing and am going through it the first time myself. I gave the tenant a window of time and rent has not been paid and now I'm moving to evict but the tenant had been in the property for years (pre-dated me buying the property) so I was not in a rush to evict. I imagine over time if encountering similar issues over and over you may pull the trigger quicker. I hope it goes well for you.

Quote from @John Underwood:

So your buying it as a 2nd home with a 2nd home mortgage then you want to move it into as business entity (LLC). This could be seen as mortgage fraud.

@John Underwood I thought it was fairly common for people to buy an investment property in their own name and then move it to an llc… there may be an acceleration clause the bank can call but I thought buying and moving to an llc was not uncommon and not illegal.

I've bought 2 duplexes with a friend and formed LLC's with operating agreements etc.. We both put 50% of the downpayment and own the properties 50/50. For these duplexes I found the deal, the real estate agent, the financing, insurance, the lawyer and setup the LLC banking so I feel I did more than 50% of the work. It has not caused an issue because I value the learning I had to do to complete the above mentioned items.

My question is this... on any subsequent purchases where I'm pulling more than 50% of the weight, how much additional percentage (assuming 50/50 downpayment) would the other legwork be worth... 55/45 or how would the legwork typically be reflected in the deal. Thanks in advance, looking to buy more property with other parties and wanting to ensure the work I put in is reflected accurately.

Thanks in advance.

@Mitch Lickey are all of the meetups in person or some virtual... I'm out of state but still looking to connect with investors in the market and see what people are into. I was thinking of putting out a virtual connect forum but if something exists already no need to recreate the wheel.

@Warren Qi I recently closed on a vacant property and have chosen to use my realtor to help place tenants as opposed to Home River Group... my thought being that if they're slow to respond to me they may also be slow to respond to prospective tenants... learning as I go and so far the realtor has had the posting for about a week and a half in late fall/early winter and there are multiple applicants to sort through.

Sounds like a bad situation Brad... but the problems facing the contractor are exactly that... his problems. Through his behavior he's attempting to use your money to pay for his problems, it seems like you almost feel bad for piling on but I would consult an attorney and follow their recommendation. I would lean toward going the legal/court route as the person appears to be of low character and seems to be taking funds for for work they have no intention of completing. The dollar amount may make a difference too... if you paid him $1,500 that's very different than if you already paid him $25,000.

@Patrick Hancock curious how this went for you. I'm looking to do the same thing and not getting clear guidance from the mortgage holder as to process for "requesting" approval to move the property under an LLC so I can do things above board... thinking of just changing the policy but insurance said they would need to write a whole new policy as opposed to just moving it under the name of the LLC... which I would imagine will tip off the mortgage holder. Trying to do this above board but looking like I'll just have to make the move and hope they dont act on acceleration clause.

@Dustin Street do the people from the list you referenced do just larger jobs or do you have good contacts for just general "handyman" providers as well... definitely in the market for good handyman referrals if you have them.

@Sammy Lyon I'm in the same situation if you're open to sharing the contact... picked up some investment properties this calendar year and will need assistance come tax time.

I purchased a duplex in my name and then quit claimed it over to an LLC. Does this present any issues with me being able to claim the interest write off form the mortgage payments as the property is technically now owned by an LLC? The loan would still be under my name so I do not think it would present any issues... trying to think it through. Any insight is appreciated for items I should be looking out for, doing a quit claim transfer for the first time.

Thanks in advance