All Forum Posts by: Jarred F.

What about the benefit of forming an LLC for outside liability protection? It has been well pointed out that there is no need for an LLC for inside liability (having to do with lawsuits against the apartment complex), but what if you get personally sued? Does holding it in an LLC vs personal name help protect your syndication investment against judgments and charging orders that arise say a personal suit?

@Dion DePaoli After multiple hours of researching this topic on the internet without much success, your response succinctly provided answers to all of my questions. Thank you for your explanation. Your response is very helpful !

I was in hopes of some creative alternative to the mortgage/foreclosure process. It is possible to pick up lots valued at $5,000 for $2,000 and sell them for $4,000-$5,000 on terms. I was hoping to scale this and develop a passive income from the notes. I know this is possible in other states, but it appears Florida is not conducive to such practices.

Thank you again Dion DePaoli and John Becker.  If anyone else has experience or ideas, I'd love to hear them. I see others selling cheap Florida land on eBay and holding the paper, but it appears there must be corners being cut. I was hoping for a legal and scalable alternative. Thanks again to all!

Like you said it seems to "circumvents foreclosure laws". It didn't sound legit to me either. Thanks for the comment Wayne!

I'm seeking some advice from the BiggerPockets community. I've been wholesaling some land in Florida for a couple years and have sold a couple of lots under a land contract (or contract for deed). But Florida is a judiciary state that requires a recorded Land Contract and a separate recorded Mortgage. Then if the buyer stops making payments and defaults on their loan (which I've seen happen in about 20% of the deals) it requires a costly and drawn out foreclosure. Sometimes the land and note can't even justify this expense as we sell many lots that are valued around $4,000 - $8,000. 

I was wondering if any of you had some ideas on how to better structure these transactions in Florida? Today I spoke to a known national note buyer and he said you can pay a local title company a fee to hold the original mortgage and contract. Then as a seller the title company will hold an executed warranty deed I sign to transfer the property I am selling. They will also get a signed quitclaims deed from the buyer and hold it too. So the  title company is holding both a warranty deed (from me) and a quitclaim deed (from the buyer). If there is a default where the buyer stops making payments they will file the quitclaims deed--thus circumnavigating the foreclosure process. However, hopefully the buyer will fulfill the note and then the title company will record their warranty deed. 

Does anyone have any thoughts on this? First, is this even legal? I'm just looking for a more cost effective and legal way to avoid the foreclosure process on these smaller lot loans in Florida. Thanks!!

First time poster on Biggerpockets!

An 88 year old friend of mine owns 1.47 acres of very prime land located on a busy retail corner. She has owned it for 50 years. She does not want to sell it, but lease it. She would be content with $6K-7K a month for a long-term (20-99 year) land lease. She has no mortgage. Long-term land leases in my area for similar size are going for $9K-$11K a month. So I believe there is opportunity, but am trying to creatively come up with the best option.

Other factors: Included on the property is her very old house and two very old commercial buildings (3,000 sf and 1,000 sf). She would like to continue to live in the home until she passes. So this may be a few years (she is doing well). She currently operates out of the 3,000 sf selling Florida novelty items (just to stay busy) but wants to retire. The building may be rentable, but in the current condition it would only generate maybe $2K/mo. She leases the other 1,000 sf building for $1K a month.

Land leases in my area of like kind are asking $70K-$90K per acre on loopnet. So, I believe the potential for a good land lease (pharmacy, bank, etc) could be upwards of $9K-$11K per month.

My issue is that the land couldn't afford to pay the $6K-$7K a month now, but eventually I would be able to sublease for a long-term ground lease for $9K-11K month and make a good profit. With her not wanting to give up her house (until she passes) an institutional ground lease now (pharmacy, etc) would not make sense as it would cut the usable sf of the land by 25% (if the city would even allow mixed use to continue). 

I'm hoping the above is clear. If I'm missing some details, let me know. One idea is to see if the zoning is OK for a car lot and clearing all buildings, but her home. But that would probably only generate $4K/mo. I could do the same for a plant nursery. 

Or I could put her under long-term land lease where I will manage all her property for her and she would get 100% of the proceeds. Upon her death and upon us finding a suitable long-term land lease she would get $7K/mo and we would be able to sublease for $9K-$11K with planned increases and make the difference as profit. But I'm not sure this would entice her.

Another idea could be to put her under contract with a 6 month contingency and see if any larger developers would assign the deal with a fee paid to me. 

Do any of you have experience in this area? Any creative ideas? Am I missing something?  I do feel there is opportunity, but not sure how best to structure the deal. Thank you in advance!!!