All Forum Posts by: Jeff Lehman

Thanks guys for all of the advice. I was able to find a bank that knew how to set up an account for the escrow.

Thanks Patrick. That brings up another question I've had also. It' not relevant for me now because both tenants have been in the house longer than 2 years but for the first 2 years, if I have in an interest bearing account, can I keep the interest or not. 

I'm buying my first 2 unit rental this week. A question is come up about the security deposits. The question is, do I need to keep each individual's security deposit separate, in separate accounts? I was talking to the bank, and they have two options. The first option is an umbrella account with individual accounts for each tenant. This option requires an LLC, which I do have.

The second option is a personal account and my understanding is that the tenants security deposits would be commingled. 

Can anybody tell me if commingling is allowed or if they must be separate.

The owner of the property that I'm buying does not have the security deposits in an interest-bearing escrow account. Can anyone venture an educated guess on whether I'll be responsible for the interest for the time that he owned the property?

In the interest of learning, what makes sheriff sales riskier than forclosures in general. Im still trying to figure out the procedures for buying property in the forclosure/short sale market. 

When a property owner falls behind on his/her mortgage, what happens? Are they allowed to fall only so far behind? Or, if they continue to pay, even if it isn't the full payment, will the bank allow them to continue without foreclosure? If forclosure is started, then what happens? Can an invester buy the property in PRE-forclosure?

What about taxes that are unpaid? It is my understanding that this is where the sheriff sale comes from. Is that correct?

Trying to figure out how to get the best deals to make the smartest investments.....

Ariel, Are Wednesdays the only evening that the group meets? I have every Wednesday evening scheduled as of now.

Thanks for the links in all of your replies. I will check into them over the next few days and see if it helps me. Brandon Hickman, do you just rehab and flip or do you buy and hold?

I am brand new to real estate as an investment. My wife and I long term goal would be to get to the point where we have enough rental properties to support ourselves in retirement and also have something to possibly pass on to the next generation. I need to know what the steps are to put the wheels in motion. Do I need a lawyer first and foremost or where do I find the laws pertaining to landlords and tenants in my area. I am pretty comfortable with evaluating properties to invest in, and knowing what should be a good deal and what's not a good deal but I need help with the legal stuff. What do I need to know and do to keep from doing something illegal? I also don't want to assume I can do/change/repair/replace something, only to find out that it's not allowed by code or law and really makes the investment worthless? Any advice would be appreciated!