All Forum Posts by: J Greenspan

Hello, I have a rental property and would like to equity strip the property via cash-out refinance to purchase another rental. From an asset protection standpoint, how do I ensure that the loan proceeds are legally protected in the event of a lawsuit? For example, say I did a Cash-out refinance on property A (which is owned in an LLC) and bought property B. My tenant from property A slips and falls and decides to sue. How can I make sure that Property B is not at risk? Any insight would be appreciated. Thanks.

I should let you talk to my real estate agent...My biggest fears were "What if it takes half a year to find a tenant" and "What if the tenant damages the place beyond recognition"....He assured me the whole time that I'd be fine, and that the percentage of tenants that don't pay are really low. He has like 10 units himself so I trusted him. 2 years later, he was right. Don't overthink it. 

Probably a stupid question....but how does the financing work if you use Property A as collateral to buy property B? Can you buy property B through a new LLC if you have a personal guarantee on the loan? Lender said they can loan to LLCs...does that mean that the LLC that owns Property A has to get the loan for Property B? Any insight on how it "generally" works would be helpful! Thanks

Hello everyone,

I know this is probably a dumb question (sorry in advance), but how does it work if I used a RE/MAX real estate agent to find a tenant/prepare the original lease, and now the tenant wants to extend the current lease? Do I have to do so using the same real estate agent since the lease is technically "owned" by RE/MAX? I found a lease extension form online but it specifically states: "Use of this form by persons who are not members of the Texas Association of Realtors is not authorized" (of which I am not). If possible, I would prefer to not have to pay commission fees if it's something I can legally handle on my own without the use of a real estate agent.

Thanks!

It really depends on your market. $750K could do a lot of damage in the rental market I'm in, so I look at that figure and see 3-4 rentals vs only 1 (assuming you don't sell your primary residence). If it were me personally, I'd rather buy 4 rentals in cash, collect 6K/mo in rent...and have $50K sitting in the bank to start off....not too bad if you ask me. But again, it all depends on where you want to park your capital.

I wouldn't even waste your money on taking preventative measures. I have a cat who was sick and for some reason, started to "miss" the litter box. Tried everything to get rid of the odor...ended up tearing out the carpets. I wouldn't take the risk personally.

Hello everyone,

I am looking to buy an investment property and found one that I am very interested in. Everything seems to check out, but when I walked out into the backyard, I noticed that there are power lines abnormally low (maybe 12-15 feet high) above the back fence. To put it into perspective, if I was holding a standard sized broom or rake, I could reach up and touch the power lines. Granted, it is above the fence and not in the middle of the yard, but my biggest concern is downed power lines after a storm or something of that nature. I want to avoid lawsuits at all costs. How much of a liability is this when it comes to rental properties? Should I just avoid this property altogether? Thanks in advance.

Hello everyone,

I am new to real estate investing so I am still learning how the process of buying a home works. I was originally told by the mortgage banker that if rates went up, the rate they quoted me wouldn't change, but if rates went down, I could essentially reap the benefits and lock in a lower rate. Yesterday, I saw that mortgage rates dropped significantly and I figured I would "lock in a lower rate" only to be told that they couldn't do it for various reasons. The first reason being a "Safe Harbor Law" restriction...which he explained is a law preventing lenders from charging too much for lower rates (I think?). The second part of his reasoning was that since it is technically classified as an "investment property", the rate will naturally be higher than if I were buying a house as a primary residence (this I can understand). But if I am looking to buy a property within the next 60 days, wouldn't it make sense to lock in the rate now or am I just being jerked around? He basically told me that I would have to find a house before they lock in the rate (maybe that's normal...I don't know). It just makes me question what other excuses they will come up with in the future, and if I should be looking for another lender as a backup. Any advice or input would be much appreciated. Thanks in advance.