All Forum Posts by: Greg Todrank

@Michael Plaks

Totally agree. I’m already working with my CPA and legal. My question is strictly operational.

 How do you determine the performance of individual properties?  Do you maintain books for each?

Searched the forums, but couldn't really find an answer to my questions about setting up the accounting around a holding company.

I currently have 10 rental properties / 10 LLCs.  I have a holding company created and will be working to move the subsidiary LLCs under the holding company.  My question is more of an accounting one.

I currently pay for my bills through each individual LLC account. I'm starting to run into some issues -- for example, my insurance company only allows 7 external pay accounts to be setup. Which means I cannot add the checking account for my latest purchase to pay the insurance. This problem will obviously continue to grow.

I currently pay the holding company $50/month from each property to cover overhead costs not attributed directly to a property.

Couple questions.

- Should that $50 get classified as an expense to the property?  I've bounced back and forth between expense for property (income to holding co) and Transfer-deduction (property)/contribution (holding co).  The "expense" option will make it difficult to see the actual performance of my properties since that money really isn't "gone".  

- If I want to start having the holding co start paying the insurance for ALL my properties, do I do individual payments from each LLC to the holding co in the exact amount of the insurance? That way the expense will show properly within the LLC. My only problem with that is that it starts adding bookkeeping steps.

I appreciate any experience that you could provide.

I have hit a threshold with my local bank for the amount that I have borrowed.  They are now asking for a life insurance policy of $250k with them as the beneficiary.

1.  Has anyone had any experience with this?

2.  Ideas on a basic / reasonable policy to meet this requirement.

Deal is dead.  We couldn't come to terms on what he wanted.  I'll probably go after a few individually once he breaks them up.  He thinks he'll do better once they are sold individually and I would probably agree.

@Joe Villeneuve -- The "down payment" that I would have had to pay if there was one is basically spread out across the 5 years.  If I don't make money until year 5, I see it as just financing my DP -- and I'm still ahead from my calcs.

I'm working a zero down, seller finance deal right now. If he doesn't come off his asking price, I'll lose about $17,000 in the first 5 years. But I'll own almost $1M in 8 properties. Spreading my down payment over those 5 years seems like a no brainer to me. My main concern is making sure I don't pay more than I can refi after 5 years (appraisal by the bank) -- other than that, I'm not finding any dang reason to not jump in immediately. Please share anything you can think of that I should be considering -- this is my first owner finance deal.

One other issue is that he has a realtor, I have an agent. How the heck do we get together and hammer this out and then just tell our agents what we decided? Too many chefs right now.

I'm working a zero down, seller finance deal right now.  If he doesn't come off his asking price, I'll lose about $17,000 in the first 5 years.  But I'll own almost $1M in 8 properties.  Spreading my down payment over those 5 years seems like a no brainer to me.  My main concern is making sure I don't pay more than I can refi after 5 years (appraisal by the bank) -- other than that, I'm not finding any dang reason to not jump in immediately.  Please share anything you can think of that I should be considering -- this is my first owner finance deal.

One other issue is that he has a realtor, I have an agent.  How the heck do we get together and hammer this out and then just tell our agents what we decided?  Too many chefs right now.

@Joshua Tessier

Agreed. I have no illusions of being able to collect.

I have a now former tenant that I didn't renew her lease because of the condition of the apartment.  She has vacated the property -- which I'm thankful for -- but left lots of damage on the way out.  Door in the basement kicked in; holes in the drywall; blinds broken; etc.

She owes me $2000 deductible from a fire her kids caused last December ("You have my word I'll pay you") and she walked out on her last months rent -- so we'll be filing in small claims court.

I already have my team scheduled to get in there to pull the carpet, lay LVL, repair & paint.

My question -- since I'll be taking some legal action against her -- is should I file a police report for the damage that was done on the way out before I do any repairs?  Or do my before & after photos tell the story enough.