All Forum Posts by: Jerel Ehlert

First, check the lease.  There should be *some* clause about being left "broom clean".  

For massive junk removal, hire a professional and pay from deposit. Remit balance to forwarding address within 30-days with itemized deductions and invoices.  Don't try to do it themselves and deduct. That way leads to liability.

I've worked cases dealing with tax foreclosures on multiple issues. These cases take all kinds of twists and turns.

Bruce Lynn put out a good post about the dangers.

The SoL is 2 years for homestead and 6 months for non-homestead.  Homestead is the definition found in the property code, not the property TAX code, and yes, it is if they say it is, and is also sticky.

Repairs do not include anything NOT required by ordinance/code or CURRENTLY in place lease (at time of sale).  So...no improvements.

Any underwriter should issue policy after 4 years.  If not, find another title company or find a fee attorney.  Or, try getting a waiver of redemption from the previous owner.  If the previous owner(s) are dead, get death certificates and it should not be much of an issue (an estate cannot have a homestead).  Might could get a declaratory judgment that a right of redemption has run its statute of limitations.

You used "probate" in the same sentence as "swiftly", and that was your first mistake.

Seriously, though, courts are going to go at their own pace.  Let me know if I can help.  Located in the Austin area, but most of the work can be done remotely.

Lawyers are licensed by each state and a lawyer licensed in any state can practice federal law (but have to be admitted to each district's bar).  Lawyers can be licensed in multiple states.  I have represented clients and hired local counsel to handle parts that were under that state's laws where I was not licensed (e.g., I was the GC and local counsel was a sub).  This allowed my client to have one point of contact - me.

Not every attorney practices the same "real estate law" as others.  If you go off into mineral rights or water rights, you might need a different lawyer than your LL/T practitioner. 

For lenders to secure their loan against community property (CP), even if separately managed, requires consent of both spouses.  This is why you need your wife to sign off on loan docs and deeds.  Inception of title says the character if the property is set when acquired, with a presumption that all property accumulated during the marriage is CP, regardless of how title is obtained (solely in one spouses name is still CP).

One solution: Form a single-member LLC and have a separate property (SP) agreement between the spouses. The SP agreement designates all income/expenses, assets/liabilities of the LLC as separate property. Not too many UW or loan officers are going to dig into an entity. If necessary, you can get a PoA from the spouse on this. See below. The SP agreement and/or PoA will typically satisfy UW and LOs. If not, probably need to deal with a more sophisticated UW or LO.

Another solution: Statutory durable PoA.  Less likely to be successful, but might do in a pinch.

Bank forecloses on borrower and complies with all the requirements for non-judicial process.  At auction, no bids but the bank's credit bid, making it the winner/new owner.  Bank, later, sells the property for more than it was owed at auction.  Question is: does the bank get to keep the difference?

Yes.

Issue: what's to keep banks from discouraging 3rd party bids?

Well, lots of things.  First, that would be fraud.  State and federal licensing agencies would crawl so far up the rectum of everyone who participates in such a scheme that they would have a terminal case of constipation.  Next, there is no amount of profit a bank could make on a series of transactions to compare with the revenue generated from operations (i.e., just not enough juice to tempt them).

The only way this really happens is if you get smaller, unregulated HML/PML foreclosures. It is still fraud, but you have reputational pressure.

Both debt and equity can be a security.

@Stephen Grindle, but you used a "magic word": passive.  The presumption will be this is a security.  The SEC and state securities board will start with the presumption that everything is a security, unless you show that it is not (and that's before you use the word "passive" to describe your investors).  There are a bunch of exceptions and exemptions (yes, those are different) to what is a security.  And even if it is a security, there are further exceptions and exemptions to registration.

Even if you know what you are doing, hire a lawyer to set up the paperwork.  Investors have capital not only to invest, but to hire their own lawyers to sue promoters and issuers (this would be you) if/when the transaction goes sideways.

Only licensed in Texas....

Regardless of whether you set up a CA or DE LLC, it must be registered in TX to lease property. You could also just set up a TX LLC. I couldn't tell you if you would still have to pay CA FTB tax on a TX LLC.

Re: anonymity  All you can do is make it more difficult to find you; it will never be impossible to find you.  Anyone who says different is selling something.  Consider: cartels, Mafioso, and foreign operatives would all love to have absolute anonymity.  Chances are, you are not as well funded as these groups.  Not saying there might not be other advantages to be had by using a tiered structure, just not hiding your identity.

Let me know how I can help.

Texas lawyer here.  Not giving you specific legal advice; I'm not your lawyer and you are not my client.

Just because you find it on the internet (including BP) does not mean it is right or even right for your situation.  This statement includes this post.  You can read the statutes directly from statutes.capitol.texas.gov (a place you CAN trust).  Chapter 91: https://statutes.capitol.texas... and Chapter 92: https://statutes.capitol.texas...

Re: late fees - Side with Dad.  Texas put in a safeharbor statute on late fees.  See, Sec. 92.019(a-1): "For purposes of this section, a late fee is considered reasonable if:
(1) the late fee is not more than:
(A) 12 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains not more than four dwelling units; or
(B) 10 percent of the amount of rent for the rental period under the lease for a dwelling located in a structure that contains more than four dwelling units; or..."

Stick to that.

Re: LL attorney's fees - Side with Dad.  If LL sues and looses, T should not pay LL's attorneys fees.

Re: utilities - Side with LL.  That's however the roommates work it out. Not LL's concern to play ref.

Re: mold/walk through - Side with Dad.  Don't bother with that clause, it is useless in my opinion.  Can't make them agree to it if they don't have a chance to view ahead of signing.  Give notice about mold - that it is everywhere.  If mold shows up ***you*** should address it.  Mold is typically indicator of water penetration.

Re: pest control - Side with Dad.  LL responsible for providing habitable home.  Termites are always, 100%, LL's responsibility.  Rats: if b/c LL didn't seal holes in walls -> LL.  Roaches: first time LL, if b/c way T lives (food left out, not disposed) -> T's responsibility.  Wasps: T.  Bees (swarming): LL <relocate don't kill>.

Re: adequate notice - No call.  Many LL's get stupid on termination notice. Who really knows 60-90 days out?  30-days' should be adequate.  Also, Texas puts on LLs a duty to mitigate losses and no double recovery. IDGAF what the lease says, you can't charge 2x or 3x as a "termination fee" and slide a new T in 5 days later that pays full rent.  Go put that before a judge and jury of 6-12 people and see how well you look.