All Forum Posts by: Kevin Borland

Steve, I was referrIng to equity stripping that if not done correctly and appearing at arms length could cause one problems. The fact that there is an LLC is not complete protection when it comes to Charging Orders in Oregon.

My understanding is 1. Oregon doesn't recognize series LLC's. If the series LLC is organized in a state that recognizes them, then for it to do business here, you would have to file for it to do business in Oregon, thus additional filing fees etc. for each of those sub-LLC's. Competent legal advice necessary. 2. Having an umbrella policy is great (I have one myself) but it is possible that a claim can exceed the limits of your insurance policy so having the property in an LLC can help protect you personally. 3. Equity stripping is another strategy. If done legally and at arms length is probably the best strategy since if there is limited equity to seize, then it is quite possible the claimant with find it hard to get an attorney to take the case. But if it appears to a judge that this was only done to protect assets from creditors, and not for a legitimate business reason, then it could get unwound. Doing a combination of all three strategies could have you covered well for inside and outside threats to your asset. But, and a big but, I am not competent legal advice and you should get a GOOD real estate attorney and a GOOD CPA to help you with all of this. The forums are good for conversations and produce ideas, which often bring up more questions, which your real estate investment team can help you solve and do it in a way that is right for your situation. Good luck.

Depends on the water district rules. Some will lien a property because their charter with the state allows it, and some will chase the deadbeat renter for unpaid bills. Here in the city of Portland, the city runs the water and sewer system, and they do not lien the property so I have the tenant pay all utilities if the property is separately metered. Their are other ares in the metroplex, generally small water districts and some of the bedroom communities that do lien the property. Call the water district and ask what their rules are.

Nice work Isaac! 

Lots of great comments! One of the main reasons for me is creating a firewall between the growing equity in each property. Your goal should be to protect your hard earned equity. Depending on the peril that causes a loss, there could be cases where the insurance will not be collectable, and the plaintiff will go after ALL of the equity in that LLC with multiple properties, or in a worse case scenario none of your equity is protected in an LLC. Then it could be time to start your investing career over from scratch. Not worth the risk. Use a series LLC and put one property in each one and firewall them. (although as others have said, it is difficult in states like CA, but in OR it's only $100yr and if that messes up the property P&L, that deal is too skinny to be in) You can be sued for anything, by a tenant, a visitor, a neighborhood, or a stranger. Can't say I have always followed my own attorneys advice though, nor my doctors and other advisors who say don't take unnecessary risks ... but we can tend to feel invinceable ... until we are not. As I get older and have watched equity grow, it became time to listen to the wise ones, to restructure and protect it. Have properties in LLC's and have them encumbered with loans so there isn't much for a bad actor to go after. Just my 2cents and worth what you paid for it.

I wouldn't put unverified trust in a service just because Google backed them with some capital, as Google has a loooong track record of starting or buying companies, services, etc then discontinuing them. And just because Google Ventures supplied some capital doesn't mean they will continue to. Not trying to be downer, I love everything Google as well but have learned they tire of things and move on to the next big thing...  Hopefully Thumbtack continues as a viable competitor to Angies list and others.

Are there any markets in the country now that have the 2% (or higher) rule in play? Other than deeply distressed?

Here is a link to the city council's move:

http://www.oregonlive.com/portland/index.ssf/2015/...

There has been a lawsuit filed seeking an injunction claiming that the 5% rent limitation part of the rule, is a form of rent control. (which seems to ring true on the surface) Rent control is prohibited by state law. We'll see if a judge decides to grant an injunction while it gets sorted out.

That seems like too much of a risk for this market. The person relocating needs to get here and locate and lockup their place to live since it is such a hot market. I would rent it to the first qualified person. If they come and look at it before it is rented, I would negotiate a shorter delay in lease start date. They can't expect you to add another 8% revenue loss (1 mo delay) for the year because that is what is the best for them. If they can qualify to rent it, they can certainly afford to pay for some unoccupied time. Seen too many people say they are very interested in a property (for rent or sale) and you go out of your way to accommodate them and then they say thank you, but no thanks.