All Forum Posts by: Jennifer Gligoric

Are you at risk as an investor?

1 - Do you have any properties besides your personal residence that are in your name?

2 - Do you do business (write checks, contracts, pay contractors, etc.) and sign your name?

3 - Does your estate plan just include a will and medical directives and lacks two different powers of attorney and a pour-over will?

4 - Do you have a retirement account but not one that is self-directed and allows for checkbook control?

If you answered yes to any of these questions, you are at particular risk of either a lawsuit, having your estate tied up needlessly in probate, or losing out on powerful tax benefits available to real estate investors.

Leafy Legal Services are experts are making sure that your assets and future plans are protected with tax strategies that allow you to grow your wealth. Our end-of-the-year tax prep season discount is here, get a personalized in-depth confidential consultation now for only $99.00.

Call (409) 761-1671 and use this code: BPQ41019

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

Are you at risk as an investor?

1 - Do you have any properties besides your personal residence that are in your name? 

2 - Do you do business (write checks, contracts, pay contractors, etc.) and sign your name?

3 - Does your estate plan just include a will and medical directives and lacks two different powers of attorney and a pour-over will?

4 - Do you have a retirement account but not one that is self-directed and allows for checkbook control?

If you answered yes to any of these questions, you are at particular risk of either a lawsuit, having your estate tied up needlessly in probate, or losing out on powerful tax benefits available to real estate investors. 

Leafy Legal Services are experts are making sure that your assets and future plans are protected with tax strategies that allow you to grow your wealth. Our end-of-the-year tax prep season discount is here, get a personalized in-depth confidential consultation now for only $99.00.

Call (409) 761-1671 and use this code:  BPQ41019

You may also find us on the web at LeafyLegalServices.com or learn more in this brief (<90 sec) Animated Video

@Kam Mill (i just saw your response to me). I've started the business I have which required putting resources into that while looking at changing my strategy so now I'm down to just 1 vacation rental property out-of-state. There are just so many ways to structure a REI business in terms of types of investments and I feel I've learned more in the last year about options I never even considered, such a micro-flipping, house hacking, etc. It's good you are building a relationship with Section 8 now - I think the people who do that tend to have a much better experience & of course your property manager plays a big role in that. Good luck! I know you're going to do great.

Congrats and welcome! It seems like from first glance you got a good deal and did your homework but I agree with the other posters, I'd budget a bit more $4-$5k or rehab. Section 8 is not the easiest, but there are a lot of landlords who have good relationships with the local Section 8 office & feel that it is well worth it but they also push for Section 8 to do their inspections rather than worry about the inspections. Just keep in mind to have some set aside because if the tenant does damage the property and an inspector determines it is a certain type of hazardous violation you might be given on 24 - 48 hours to fix it, and then you can make a complaint to Section 8 about the damage. The renter won't have the means to pay and I read that Section 8 on move-outs will require renters to pay back repairs in payment plans or lose Section 8 - but that seems to be more rare than standard. Also, because you are using the LLC just make sure that you write all your checks and accept all payments in your LLC. Keep your accounting separated as well to keep a layer between you personally and your business. Oh and Good Luck!!!

@Account Closed  There are automated mailer services that cost as low as .05c - I always try to think about these things as the value of my time being used on highest / best use.   Also, don't forget you can get some incredibly targeted lists from certain freelancers who only work with realtors and real estate investors on Fiverr, UpWork, etc.   Anything you are thinking of doing manually, there is usually a service for that that will free up your time on more personalized introductions and conversations.  You want to use the education you've obtained and throw up enough stuff against the wall to make it stick - it's a bit of both rather than just one or the other.  

This happened to me through AirBnB with a short term Houston stay during the summer.   They cancelled the night before the stay & said "Oops, just rebook" and sent me the "Host has accepted you..please finish your booking email" - only at a rate $20 more.  When I contacted them they refused to respond.   I contacted AirBnB & I ended up (after my stay, we were lucky enough to just bunk with the friend I was visiting on her air mattress) getting a 20% coupon from AirBnB - and this was a Super Host.  

So even though you can't do anything, Hosts are able to manage their business how they wish, sending a respectful complaint to VRBO might give you a discount.  Good luck!

@Account Closed  I'm sorry you have to deal with this but my advice is to minimize & end all talk with the non-owner and physically be there when the survey takes place and take pictures/video of all the markers, etc.  I would also file a police report after I had crystal clear clarification from the survey results if they do anything further.  

I understand you don't want to go to court but vexatious litigants are a problem for real estate investors.  According to the National Survey of Court Data (I have this if you want to read it) while 25% of Americans are sued in their lifetime, for real estate investors it rises to the astonishing rate of having a 95% change in the next 20 years.   This is not to scare you, but just let you know that paperwork and how you go about handling your real estate investment business is crucial for you to minimize your risk of exposure.  Document everything, keep a concise timeline and once the survey comes in I'd think about sending a certified letter to the owner of the property with the survey map, pictures & information in it that is drafted by an attorney that any interference on their part with your reasonable and lawful use of your land will not actionable on your part.  I'd also discuss with the attorney including an offer to allow the offending neighbor to buy the tree line that covers all your costs and is reasonable with what you'll be losing in terms of real estate with a hard deadline (but based on their behavior, I might not want to even give them that option, plus you may not want to do that at all as it might not be worth it.)

I agree with your gut feeling that they are the type of people looking for a fight and trying to figure out if they can make some money off of you.   Sadly, this is not uncommon so just make sure to document everything and every interaction.   Hope this helps and good luck!  

As other posters have pointed out, smokers are not a protected class but you do have to be diligent when it comes to making sure your paperwork and advertising are in order.  

You need to have a Non-Smoking Lease Addendum and it needs to lay out the type of smoking that is not acceptable (tobacco, pipe, cigarette, vaping, marijuana, etc.).   Keep in mind that asthmatics need inhalers and nebulizers so you have to be careful to not inadvertently create language in your addendum or advertising that would get you into hot water with ADA laws or the laws on your state's medical marijuana protections (if any).  

You must also spell out in your addendum the areas that are protected against smoking (inside units only, parking lot, pool, balconies, etc.)  If there are permissible places to smoke, you need to make sure that it is clear in all paperwork & advertising.  Non-conflicting information is the reason for this as tenants have been known to counter and win arguments in situations where they prove that while the lease agreement states no smoking in the addendum, there are smoking permissible signs, ashtrays and cigarette disposal around the pool.  Advertising should also indicate the nature of your non-smoking rules.   The more crystal clear you are as to expectations, the better.  

Congrats!  You've taken the leap and I wish you the best of luck. Welcome to RE Investing :)   

I believe in being a laser-focused niche so any new offerings should be geared towards real estate investors and helping them be better entrepreneurs in general.  It's not an either-or; the best investors are also great entrepreneurs but not all entrepreneurs are real estate investors.