All Forum Posts by: William Morrison

ok @Luka Milicevic great recap but you left out one important part.
How did your wife respond to your presentation?
Mine is still laughing.  Great thread.

 Tom, you're correct to some extent.  What I laid out on purpose were violations of code, negligence or both.  Those are not hard to find and results as well.  Check the threads here on BP for some of the work that has been done before the thread is started looking for help.  Negligence or breaking law by violating code, some considered minor some not.  It's not cleaning the gutters and your ladder fell over or watering the landscape and the sidewalk got wet and someone tripped.   
Your final point about talking to a corporate attorney (I did) is exactly why it's important at this level.  Look at those that are just starting out here on BP, watch the threads for how much money they have or don't have to start out.  Not a lot there for time with a lawyer.  Look at the number that recommend Do It Yourself LLCs to save money.  Those well funded would be less likely to start out without a lawyer.
I have several Licenses and Registrations. I get the monthly list of hearings, law suits and settlements in those states. As I'm sure you know without credentials the one sued has to prove competence. An LLC is just not the panacea some selling them suggest. And I don't think you are suggesting that.

 Jen, I liked your post.  This site has many first time investors like the owner of this thread.  One thing new investors seem have in common is they do one or more things to make their dollar go farther.  They buy to fix, they do their own maintenance and repairs, they are their own property manager, etc.  I think what can happen in any or all of those areas can remove the veil. 
I'll give a few example.  I just bought a property from a landlord getting out.  He did his own carpet replacement as well as some other things I had to have fixed.  What could go wrong with that?  He saw the video at Home Depot and used their tools.  It was not stretched correctly and the ripples were a big tripping hazard.  I had a carpet guy come re-stretch it.
New investor replaces the gas hot water heater with one he bought from Lowe's.  Seals the gap in the induced draft flue.  CO issue in the rental and maybe fire.  Real story.
New investor replaces the front and back steps but the rise is not to code.
Real examples are easy to find, just check some the do it yourself threads on BP.  
Who are you going to sue? The LLC alone or the investor as well. I don't know if I'm really asking because I got my answer from a lawyer who only takes non-frivolous tenant cases. He's suing both.
The big difference is passive investors with property managers vs sweat equity investors.  

Login, Let me see if this old guy can do a word picture.  Grin.
Think of an attic you've been in.  If you pull the insulation back you can see the ceiling and in places you can see the top plate of a wall below.  The top plate is a 2x4 that the wall studs nail to.
If you were to drill a hole in the plate from the attic you would have a place for the new wire and yes cable TV wire to enter.  Then 14 inches or so off the floor below you would cut a square for the box for the electric and the cable.  Now think of a long coat hanger, it not but a fish tape is a lot like it, only longer.  You push or pull the new wire and cable TV wire with it into the box without cutting the wall.
If you have to make a small cut at the ceiling you can sometimes cover it with new molding without tearing the whole wall up as well.
Surface mounted systems are around but I don't think I would ever use it in a residence.
Guys like Robert can be even more creative with how they pull wire without tearing up a wall.
Good Luck.  Hope this helped.

@Brian Eastman you're correct I was more focused on the debt financed real estate.
It remains important to at least be able to talk intelligently with your CPA.  I think you agree knowing you suggested the pub reference.
All CPAs are not created equal just because of the credentials.

There is a Blog here,

@Brian Eastman I agree it's not for everyone to DIY, they should at least read and see how few entries affect them and to know there is an associated Schedule E. Then anyone with with rentals will have some idea of the similarities with a non IRA investment. They will also be able to have a more productive conversation with their CPA. It's only a few pages in Pub 598 that apply, worth checking.
The book "Leverage Your IRA" by Matthew M. Allen has some great tables on what is going on with the UBIT.  Best price is on the NASB site.
The more you know the better.

 Dustin, not a bad set of terms for a commercial loan.  I have a 4.625% 5 year arm over 20, I think I'm at about year two.  Before ever using a commercial loan I did not look at the pay down rate in my evaluation of a deal.  Costs, vacancies, major repairs vs rents were the main items.  I looked at buying right and value added as well.  I generally do not count appreciation, seems it can be flat for years and then jump, or drop.  I take it as it comes.  But buy down is a lot different on a 20 year note.  Check an amortization schedule and run the same loan with 30 and 20 years.  The difference is worth keeping in mind in your evaluation.  Your numbers still have to work, but not a bad wealth creating method.
You just can't spend it.  Grin.
I would probably still go 30 year conventional if I could because my money goes farther, say 5 properties vs four.  Like they say if you have only one and it's vacant, you are 100% vacant.

@Login George you need someone just like Robert to give you a quote, get a couple.  They can tell you if they can pull wire and with about how much damage to the walls.  Sometimes even the wire can be the pull wire.  They can do a lot with fish tape and over sized boxes.  
The exposed wire is easy for them to estimate.
I'm sure Robert can tell you for sure, but you maybe able to leave some old wire behind he wall.  You do not want any exposed in the attic, basement or crawl space, any place someone might connect latter.
Are you going to pull wire for cable at the same time?

Mine is a little like @Steve Vaughan 's situation but I have a Solo 401k via my S-Corp and rentals there too.  Although those cannot be managed by you in the same way.
Check limits, you might find it an option.