All Forum Posts by: Kyle Rice

Originally posted by @Michael Hickmott:

It is best if possible to not involve your personal credit, use an LLC. Don't go to a big bank, ie Bank of America, Regions etc. All they will do is frustrate you and block you from doing anything, always use a community bank or a credit union that services their own loans. If they want you to have a personal guarantee on the loan, then make sure it doesn't show up on your credit report (administrative guarantee-not registered). The banks can't have it both ways, although they will try, do not let them tie up your personal credit if it is a loan to an LLC (commercial loan) which they will tie up, don't let them try to cross guarantee the loan with other property, do every deal as if it stands alone and if they won't negotiate then walk away and try someone else. I have a business associate that has purchased and sold over 250 properties and has never used a bank. (he hates banks)

 So Michael is your business associate just using private lenders? Do tell

Very good information thanks for the replies

I have been applying for new loans to buy another property but my debt to income ratio is high because of my existing mortgage on a 4plex. If my 4plex was owned by a trust or LLC would I still have this problem since technically it would not be in my name? Can a trust have a mortgage on it? Is it legit to use a trust or LLC in this way? How do others make this situation work?

Would you allow a tenant to store items in a crawlspace? I would generally say no but these renters have been great so far and said they'd be willing to sign an addendum. Their family is growing and they want more storage. Thoughts?

Just curious how many of you use mortgage brokers versus going straight to lender. I'm looking at doing a conventional owner occupy and this will be my residence. What are the pros/cons of both?

update: I spoke with Tenant and decided to let them out early to avoid any future damage they might cause. I also could not show the unit in the condition it was. They moved out a few days ago. During the move out inspection things got interesting after we found some damage and mice infestations. They also did not clean or do anything on our move out checklist sheet.

They became irate about the possibility of being charged. They started yelling and insulting us so needless to say I cut the inspection short. The odor in the garage was unbearable with dog urine and mouse feces. Turns out the washer and dryer were overrun by mice. It was absolutely nauseating! We had to take them apart to clean and fumigate. We also had to tear out the garage stairs because they were saturated with urine and feces.

After two days of scrubbing the garage floor, with everything from simple green to bleach to baking soda, the place is finally smelling better. Wow! Talk about learning my lesson. This tenant has been a nightmare for me. Moral of story : NEVER bend the rules and ALWAYS thoroughly screen tenants. Oh yeah and don't rent to your HR lady :)

Thanks to all for advise and comments!

Wow I got quite the response on this post. All great advise. I am going to set a meeting with them and try to work this out to benefit both parties involved. Thank you all one again for the responses. I'll let you know how it goes. Kassandra T.- I would love to attend these meetings. My work schedule may make it hard for me to be there but I will definitely try.

Kimberly no worries. You make some great points. I love BP! This is such an awesome resource. I really don't know where I'd be without having these forums to ask questions. Thank you all once again. Great advise!

Yes it's a huge learning lesson. I broke my own rules and I'm paying for it. Kimberly - I know it sounds like I'm being anal about the grass but they put huge ruts in it basically turning that area into mud. It's pretty bad. It's going to require hours of repair. Huge learning experience for me. Thank you guys for the comments.

I have a tenant who I probably should've evicted a long time ago. Brief history: this tenant is the HR lady at my workplace and I originally broke my own rules by allowing her to have a pet and pay the security's deposit late. Within the first couple months she had a visitor past the 7 days without approval, had an additional pet staying there and there was a fist imprint in the refrigerator door. Since she and her fiancé worked with me I decided to write a letter and have a sit down with them. They agreed to pay the damage for the refrigerator and were apologetic about the other violations. Fast forward to this month...they are now on a month to month lease. She calls me the other day to give 30 days notice on the 11th of the month and asked if I'd let her move out by the 1st of May. I then informed her that we need 30 days notice before the rental due date which is the first and that it must be written. Yesterday she turns in a handwritten letter that is dated the 10th of April and has a few snide remarks in it. Then the following morning my wife saw the tenants now husband drive over a section of our grass and spin his tires,ruining that section of the lawn, while on his way to work. Today I noticed another area where he cut the corner and left huge tire marks in the grass. My question is would you bother with confronting this tenant and or evicting? It's touchy since she handles my pay checks and other papers at my workplace. They will be gone at the end of May. Would you ride it out? At the same time I feel we should not let them get away with all this but I know I've got to choose my battles...Thoughts?