All Forum Posts by: Josh Thomas

I'm in the same situation where I would like to make sure my LLC is set up with privacy, not only for being sued but also so that the city doesn't personally find me responsible for code violations.

Check out some of the asset protection webinars from Anderson Advisors. They give you just enough information to realize you probably need a professional to set them up.

If you search for WY LLC holding on here you'll find a bunch more info.

Hello BP, I have an old duplex in Cleveland with about 5 pages of code violations. This happened because I was evicting a tenant for non-payment and they called code enforcement. Some violations will be very pricey to resolve. For example:
- Each occupant shall have ready access to all fused breakers protecting the wires that supply that occupancy.
- Obtain electrical permit for unapproved work at electrical panels

The breakers are in the basement with no way for the second floor tenant to access them, without of course knocking on the door and asking the downstairs neighbor for access. The breakers were updated from the original without a permit so there is no ability to "grandfather" in the situation.

My question is what might happen if I never resolve this? I know it will be an issue if sell, but what if I never sell and just keep it as a rental? Will the inspector or the courts eventually come after me and press criminal charges? Couldn't I just move the building deed out of my personal name and into an a private Ohio LLC owned by a WY holding LLC and then be free of personal liability?

Does anyone have experience dealing with a similar situation? 

FYI Cleveland's lead paint policy has changed, you no longer need to pass one in order to evict a tenant. 

5% seems like a great rate to me. I suppose the answer depends on if you are still comfortable with the cash flow. 

I'm finding that traditional multifamily investment loan rates have skyrocketed and are steadily increasing by the day. In December last year I picked up multiple loans in Ohio at 4.25%, whereas my rate today is 5.95%. ARM and 15 year options aren't much better than the 30 year fixed. I have a feeling it will keep going higher for the long term based on fed speak.

I have 800+ score and finding that traditional multifamily investment loan rates have skyrocketed and are steadily increasing by the day. In December last year I picked up multiple loans in Ohio at 4.25%, whereas my rate today is 5.95%. ARM and 15 year options aren't much better than the 30 year fixed. So 6.3% isn't that far off, depending on your area.

Search for "google sheets loan payoff calculator template" to help you compare rates.

Need more info. What area? 

If buying, earlier is better so you can get the maximum pro-rated rent credited. Generally I like the 6th since in most leases rent is not 'late' until after the 5th. I've had a title company tell me they can't pro-rate rent that hasn't been collected yet.

If selling it would seem that the later in the month is better so less rent is debited.

@Imran Ahmed I was looking at a 54-unit apartment building in the middle of nowhere Texas. The building looked great and the numbers were off the charts after a year's worth of work to get it stabilized. I was a little hesitant since the town had population trending downwards, but before I had time to put an offer together it was already under contract. Guess I need to move faster next time.

@Diane Calderaro did you end up doing a deal with them? I've been following them for some time and about to put in an offer on a deal.

Also curious if anyone has found any other investment firms that are like RealPro?

Looking for advice as I'm getting closer to putting in offer for on an apartment building in Texas. For those of you who have done deals with partners, how would you structure a deal as follows?
I found a 54-unit apartment building with poor management and 10% occupancy for sale. Need to buy with all cash. I have about 40% of the cash to put down, and seeking another 60% from a partner. I plan to facilitate the transaction, move to the area for a month or two and work on getting new management in place, fixing up units, marketing, increasing occupancy, and remove bad tenants as needed. After building has been stabilized in 3-6 months I plan to do a cash out refinance where I could pay off my partner and I would own free and clear. 
With that being said I plan to seek a partner that would provide private lending only, keeping out of daily operations. I'm just a bit confused how to actually facilitate something like this.
Would I get the title company to spin off a private mortgage note with terms they accept? 
What terms would make sense for a 1st note in the $450,000 range?  Would 6% simple interest for 1 year, renewable for another year make sense if my partner is a close friend?