All Forum Posts by: Mark Spivey

Is there a good online resource for estimating land comps?

I've tried googling and can't find anything to give me any clues on the land value for my area. Even the tax assessors office doesn't break apart the value of the land vs structure.

That runs contrary to what Garret Sutton says. Maybe because it is CA where it's very renter friendly and easier to "pierce the veil"? I think CA LLC's are the weakest around. I don't claim to be an expert. I'll do some more reading when I get the chance and post back.

I suspect that dollar figure you quote is highly dependent on many factors. I know CA fees are among the worst around, and NV's used to be cheap, but are now getting fairly expensive in their own right. So I would encourage people to check it out on their own.

Seems to me this is a very important decision that shouldn't be taken lightly. I wouldn't trust me or anyone else. I would treat it as due diligence and research it to the last decimal.

I thought placing your property in an LLC discourage litigation in the 1st place? Is my logic flawed?

2 scenarios:
Say Problem Renter A slips on the stairs going up to the house gets injured and decides to consult an attorney.

Insurance Scenario:
The attorney see's it is personally owned by you and assumes you probably have an insurance policy and assets worth hundreds of thousands of dollars (insurance, umbrella policy, personal home, retirement accounts, kids college funds, other properties, etc.). He files a lawsuit for $5 million dollars. Even if they are only awarded the value of your umbrella policy or your win outright, you still lost because you had to pay your own attorney's fees and lost countless $ due to the time in litigation.

LLC Scenario:
The lawyer looks at the house and see's it is valued at ~$100k, but leveraged at 75k. If structured properly none of your personal assets are at risk. There is only 25k of equity for him to steal. He tells Problem Renter A it is not worth their time.

You can get a Wyoming LLC for only a couple hundred $/ year. Probably about the same cost as an umbrella policy and you don't have to worry about some judge telling some guy you owe him your life's worth.

I am new to real estate investing, so someone please tell me if my logic is flawed as this is how I intend to own rental properties.

I'm not the sharpest tool in the shed and a noob to RE investing to boot. Can someone explain how paying more taxes allows you to borrow more money from a bank?

Thanks

That is an absolutely awesome document. Thank you very much, I've just saved it.

Thanks for all your responses!

I've requested my free book and hopefully it will soon find its way to my front door.

Hi everyone, I am new here and new to RE investing.

I intend to buy and hold turnkey single & multi-family rental homes. I am still trying to learn all I can before pulling the trigger on my 1st purchase.

One thing I don't seem to find much good info on is insurance.

I do plan on placing each of my properties in an LLC.

What kind of insurance should I get? I read about mortgage insurance, landlord insurance, hazard insurance, homeowners insurance with and without umbrella policies, replacement costs, etc. It's all rather confusing.

What sort of insurance coverage do I need? How much can I reasonably budget for insurance costs?

If anyone could just point me to a good book or other resource that explains all the different types and pros/cons of insurance for buy&hold rental landlords I would be very appreciative.

Thanks in advance!