All Forum Posts by: Henner Mohr

Unfortunately a lot of newbie investors are so desperate to get cash flow that they do behave in this type of behavior.

Thanks Josh,

You must have a lot of great deals down in Florida right now :)

H

When times were good many newbie investors would buy property from banks promising that the property would be "owner-occupied" meaning the bank would give the new owner a better interest rate since it assumed that person was going to personally live (and take care of) the property.

The big problem here is the bank would have also required that the new owner purchase the property personally rather than through a LLC.

This means the property owner would now be personally liable for the property.

For new investors who find themselves in this position you must be careful about using a Quit Claim Deed to transfer ownership from yourself to an LLC you own. Often banks have due on sale clauses in their paperwork that would be triggered by a transfer of ownership. Doing this might make your entire note due immediately.

Terry,

Most states have a Real Estate Commission which has all of the legal forms for that state available for you to review. For example here in Denver you can go to Dora and download the same forms that your Real Estate agent would use.

I would suggest looking these over to get a good idea of what the contracts look like.

good luck.
Henner

Hello BP,

I have just joined the BiggerPockets community and wanted to introduce myself.

My name is Henner Mohr.

After reading a number of posts over the last few months I am very impressed with a lot of what I am reading. I have also had the distinct honor of meeting Josh and his family here in Denver.

I am a very experienced investor and have many years of property management experience under my belt both for residential and commercial property.