All Forum Posts by: Jerry W.

OK, you need a plan on who will run it.  How they are removed, what will happen if a decision is not unanimous.  How will profits be divided?  Losses? What happens to someone's share if they die?  Can their heirs vote and participate in the company?  What if they have 6 heirs who equally split all of the the 20% share?  Do they all get a vote?  If you get deadlocked or lose money will each of you have to contribute?  What if one refuses?  All of these questions and more have to answered by the partners.  The attorney is not supposed to decide that he is supposed to put into words what you ask him to.

@Magus Ahnend, ok so you bought the land under some sort of contract.  That contract will controll what you can legally do and not do.  READ YOUR DOCUMENTS.  The fact that you did not get a copy does not mean those documents are meaningless!  If you do not have copies of them, then get copies of them.  You signed a contract, you had better see what you signed.  Then if you have any questions take it to a WV attorney.  Do not look for a fight until you know what the rules for fighting are.  Having folks on the forum trying to guess what you should or should not do is absolutely useless.  Not even an attorney can help you without more information.

@Ariana Manigo, a couple of thoughts.  Some schools have work study programs where you work for a business for a grade.  It is only a few hours a week.  Maybe do it in a real estate office or property management company.

Another possibility is to get a job at a company like that and explain what you want to learn.

Another possibility is find investors in your area who might need some help.  It could be anything from running errands to answering phones, etc.  Being able to combine learning and work has its benefits.

If nothing else just start following the internet on on pleaces like Realtor,com, Zillow, even Facebook, etc. to start learning property and rental values.  Knowing the market is the start of being able to decide what is a good deal or a bad deal.

Whatever you decide good luck.

@Austin Fowler, actually I just opened one this week.  Hope to open another in the next 30 days, but that is still undecided.  The peak season is almost upon us and if I am not open for that, then I will mid term or long term rent it unil next spring.  Of course I am off the beaten path in Wyoming.

@Kwanza P. I hate to break from the wisdom of the others here, but here is my perspective. How involved are you in this house? Sometimes when I buy a house for a STR I see a vision partially formed in my mind of a theme. It might be cowboy, it might be grandma's house, it might be the rendezvous site. Then I buy furniture, art, and anything else that promotes the theme. The house usually has renovations going on for a few months, so I have time to shop facebook and even yardsales. Now if you just bought a house, had new flooring and paint done, maybe a small update on kitchen or bathroom, then hiring someone else to do it seems the best track. It is not unusual for me to spend 6 months or more renovating a house to become a STR. Part is time, part is money. I recently bought an extremely nice couch, loveseat, and 2 recliners, all nice leather, for under $1,000.00. They would go great in nearly any rental I have and it is normally a $4K set of furniture. However if you waste 2 months buying and doing it yourself, you will have lost money. So consider the amount of time you have compared to money, how soon your peak season is, and if you already have a theme or not. The rest of the furnishings, like the kitchen can be bought at Walmart, Bed Bath nd Beyond, or simply off of Amazon, depending on the quality desired. Best of luck bud!

@Pooja Jadhav, your state may have laws that differ from states of those offering advice.  Please check with a local attorney before going forward.  I have a clause in my lease that allows me to show the property to prospective tennants.  If a tenant refuses me entry or obstructs I warn them that obstructing my access will result in a 72 hour notice to Quit for violating the lease then I will file eviction against them, which will ruin their chance of renting again for a very long time play nice, or play hardball, I will play it the way they play with me.

@Valarie Anderson, rents can vary a lot from town to town.  The big dog of rentals in Worland is Mc Kinnon, he has several companies, like Northern Lights, etc.  There are several professional investors there.  The quality and location of the house matters a lot.  Feel free to send me a personal message.  I have 3 rentals left there I think.  I have one flip going there atm also.

@Valarie Anderson, there used to be an investment REI group in Cheyenne that met monthly. I would attend the meeting about twice a year when I was there on business. There was one in Riverton I went to a few times, but the founders moved away. They have since moved back, but I have not seen any meetings. Nathan started one in Cody I went to a few times, but it is also closed now I believe. There may be more that I don't know of. I have had a few meetings here in Thermopolis, but we are only once a year or so when it happens. We have a closed facebook place where we ask about potential renters or post warnmings for particularly bad ones. If you start one in Casper please let me know I will try to attend some. I know several investors there. I am also glad to chat. Let me know if you come through Thermopolis.

@Clint Coons, the entire thing the poster wanted to accomplish was to have him be part owner, but not be listed on the mortgage. I understood your post to be here is how you have a half ownership but not appear on the mortgage. No lender I am familiar with will ever want to have a mortgage on the property where there is an owner who is not on the mortgage. Are you familiar with any bank who want to have a mortgage on a property from only one half of the owners? I understood your answer to be here is how to confuse things enough that the bank won't catch it. Otherwise what is the point of your answer? If a bank learns that someone is listed as half owner but is not on the mortgage I would imagine the odds of calling the loan are upwards of 80%. Do you disagree? Not calling the due on sale clause is different if you pop it inot a wholely owned LLC or trust, but actually add an owner, I think the odds increase dramatically.

If you are doing a transfer to hide the one half ownership, according to Letitia James, that is felony fraud. I do not agree with her, but the daughter obviously had to fill out the loan application, and and the personal financial statement. If she lists the property that only has her name on the mortgage as only being owned one half by her, the bank will call the note. If she hides it, it becomes a felony. Most banks do not get excited at moving into an LLC, I have seen maybe 3 call a note over it, but another owner not on the mortgage and I have seen notes called well over half the time.

Wouldn't it just be easier to have an LLC owned by both apply for and get the mortgage? Why all the entities. If deception is the intent, to obtain a loan, technically it is a felony. Do you disagree?

BY the way what your company charge to create all of those entities and file all the returns needed to file taxes on them?

SO @Clint Coons, if they want to buy several houses like this what happens when they update their personal information yearly with their financial statement and tax returns?  The LLCs will show up on their personal return, as well as their individual ownership interest.  The personal financial statements require them to list every entity they have an ownership in as well as the percentage.  That would show the whole fake facade and possibly be cause for the due on sale clause being invoked.  Why not just be honest?  You could lie on your financial statement, but that is how Trump got his felonies.

@Anthony Pitruzzello, I would not use this method to purchase property.  The multiple entities, the yearly reporting requirements, the cost of setting the entities up, the book keeping in keeping them sorted, the registered agents, the FinCen reporting, well you get the idea.  It is easy to worry about so manyn things.  Your main worry should be finding an investment that actually makes ense, not worrying about minute details for one small part of your plan.  You need protected, but you don't need to live in an armored car.