All Forum Posts by: Jerry W.

@Paul Sanders, just a few thoughts. First good old politicking, find all of the other owners who can vote and see if they will agree to vote with you to allow STR or even to amend the bylays. Legally you can claim estoppel and latches as a defense as they let it go on for so many years and you relied on it when buying. Third pack the board with your allies and vote it in.

@Robert Loebl, a lot depends on how you buy.  If you finance the entire purchase price it is dam hard to find a deal that even breaks even.  If you put 25% down like the banks want you can at least break even or make a little on good deals.  How do you buy?  Right now you won't get financing at less than 7% maybe a lot higher.  That means the 1% rule will lose money, especially if you are paying 9% or higher.  I cannot buy a property right now and cash flow, or even break even without a huge down payment.

I have done this in the past.  There are numerous ways to do it.  One rate for just renting the stall or enclosure, another price if you supply feed, yet another price if you want them in an inside stall like a large barn, etc.  There is always a substantial liability to keep in mind you should get specific insurance, and tons of disclaimers and permission slips.  Will you be responsible for trimming feet, doing shots, wormer, exercise, what if the horse gets sick, what if a horse brings in something like vesticular stomatitus, and all the horses get it?  What if a horse gets wire cut, or bitten by another horse, what if the veterinarian bill will be $10K what are you supposed to do?  What if the person never comes back for the horse?  What if the horse hurts someone or another horse?  Lots to think about and prepare for.

Just make sure the general partners are a corporate entity, not you personally.  Otherwise there is no reason to add the partnership.

@Daisy Hawkins, if you are going to sell the property make very sure it is a good tax move.  By changing the ownership you might be changing your tax from a long term capital gains tax, to a short term capital gains tax which is a really bad thing.  Short erm capital gain taxes are for properties owned less than 1 year.  Double check that.

@Rene Hosman, how did I not know about the add free service?  That is embarrassing.

@Michael Quarles, good to hear from you again.  I also miss a lot of the folks who originally posted on here and did interviews.  I didn't find bigger pockets until around 2008 I think.  I found an article from Brandon Turner while I was trying to educate myself on how to be a better landlord because I had messed up badly in renting to one tenant. I followed that article to bigger pockets and the Pod casts.  This was an amazing completely free site then.  Josh had a really serious health issue with one daughter and had to step back, and then sold the company.   Then we lost Brandon.   I spent every waking hour of about 2 months reading every article under the Learning section and was simply amazed at what I didn't know.  I then grew my knowledge along with Brandon Turner who we got to see progress personally.  Pretty much all of the old staff left and everyone cranks out a book to sell once or twice a month.  The site simply grew up.  The new owners got serious about monetizing the platform and it has progressed accordingly. Now you will hear 15 minutes of advertising for every hour of content. The articles are less in depth, and are short and fluffy. It was magnificent and free, now it is good and you have a lot of stuff being sold.  The site grew into a business.  It still has a massive amount of free information, but it has lost the small tight knit group of folks.  I still like to give back when I can, and to be honest I usually enjoy it, but it was an important source of education for me that I am still grateful for.  I try to pay it back once in awhile.  Good seeing you again.

@Dan N., one thing I really want to stress that most folks mess up is a registered agent.  You MUST have a local registered agent.  One if you do not register your company as a foreign company you usually cannot file an answer in court if you are sued.  If you register but do not have a registered agent they can often serve you by publication, or perhaps by serving the Secretary of state or any of several ways that might result in you not knowing that you have been sued.  They they get a big fat default judgement against you.  This is really bad.  I have actually seen this before and courts usually stick to the rule unless you get dam lucky.  If you are just a plain person they usually must serve you in person.  Not so if you are a company.

It is my understanding that this information is restricted, even more so than tax returns.  A defense attorney will not be able to get this information for purposes of a lawsuit.  Just having that information might get them in trouble unless they have a good alternate source of the information.  After the September 11 attack on the world trade towers, they passed a lot of laws aimed at being able to track people, requirements on having identification to open a bank account, and reporting on tax transactions of over $10,000.  It turns out those laws intended to track terrorists were massively helpful in tracking money laundering for organized crime and were very effective at it.  This is probably an offshoot from how effective that law was.

@Dan N., to the best of my knowledge a Wyoming LLC can own property in any state, however the LLC must register as a foreign entity in that state. There are a lot of good things about Wyoming LLCs, but the favorable Wyoming laws don't matter as much because the state you are in will apply the laws of the state the property is located in. If you file an eviction then it must be filed locally, if your LLC is sued they will sue locally. There are some benefits to having an LLC on reduced liability, but there are more expenses. One your loans will be a higher interest rate, next you will have annual filings, the cost of a registered agent every year, and items like that. Just like most things in life there are good and bad to both choices. I really like LLCs compared to corporations because of the free stepped up basis for passing property to my children. A sub S election will probably block the free stepped up basis benefit though.