All Forum Posts by: Marcin G.

"My first order of business would be to subpoena your and your parents bank records to see that the money is both received"--> yes it is ..the account that I deposit the money will shows that

and spent by your parents. --> ;-)) what if they do not want to spend ? what next you want to subpoena....if they were deposited in $100 bills ? ;-)

you may want to check out some of the case law where a parent has attempted to sue children for reimbursement--> one thing is to sue children for that ...entirely other things is mutually agree on a contract whereby both parties sign up on specific performance . I have agreed to repay the money

I also checked HELOC. I spoke to BofA, Chase, USBank and looks like only Wells Fargo entertains HELOC on rental properties. they can do 75-80% on each property, bake the closing cost into the rate and charge $75 a year to maintain the account. not a bad deal ...

i would assume any judge would understand that it takes certain $$$ to bring up and educate the kid. now...the judge will be looking at repayment of the loan. not a problem .. I will set up an account in any US bank ..name my parents as beneficiaries and deposit certain portion every month. I think given all that my plan is pretty good, cost effective too. what you think ?

funny ..i own 6 rentals + primary ...and when I was adding the 6th one to my umbrella, the guy told me that they will most probably not renew it for the next year. i have landlord insurance thru safaco ...good price. I think I might start looking or commercial insurance...

insurance is a number's game. the more claims denied the more money they make. in general I am worried that tenants injuring themselves on my property and sueing me. i have a balcony in one property. i have couple of fans in all others..what if the darn thing falls one day straight into the my tenants soup?. I own 4 units in 100 unit building...there is a garage underneath..potential for carbon monoxide problem ...as far as upkeep and repairs .. I do everything as soon as I am notified about the problem by my tenants. I own condos only that limits further my exposure ...but ...u never know

I live in IL, am single, have several rental properties, have landlord insurance and umbrella policy. I do all the work myself (repairs, upkeep, accounting, screening, approving of tenants etc). The following idea I have in mind, in my opinion is very simple, cost effective, preserves my tax status (hedging my W2 income with loss coming from my properties) and most importantly is done in good faith not trying to defraud anybody…just to protect myself against frivolous lawsuits or when my insurance policy or umbrella policy declines my claim
Here we go …

LLC – I have turned down that option. I do all the work myself and even if I create 1 LLC per property I still would not enjoy full protection as myself and my LLC would be named in the lawsuit. In IL I believe creditors can even foreclose on an LLC. I would have to create a 1 member LLC anyways. Not a strong protection, costly, up to 750 in the first year, 120 thereafter per 1 LLC. Keeping separate tabs, separate bank account, doing everything in the name of LLC. A lot o hassle

Trust - Pretty complicated, costly, not sure I could still declare profit/loss on my tax statement. I read about so called 541 trust …when a creator brags the trust was not penetrated so far in any case. The cost of setting up. $6K …probably something I would consider if I had $1M in real estates …

Friendly Lien – my parents (who reside outside of US) incurred considerable debt paying for my eduction, bringing me up etc (consideration)…I plan to create a contract with my parents that would state that I am obligated to repay the money. I plan to record the lien against each of my properties up to its market value (all of them are free and clear). As a result I will still own the properties, enjoy tax benefits, to the outside world it will look like I am indebted pretty heavily. Anybody who will hire an attorney to sue me will pretty soon hear from his attorney that there is not much they can get even if they win against me. This will make me less of a prey for all those chasing quick buck. Again, this strategy is not to be implemented to defraud anybody or declare bankruptcy the next day . I do not have any pending lawsuits a of now. I am purely interested in protection and preservation of my assets. Please let me know and thank you……

I have 3 buckets. (I don’t charge an ap fee)

Application being processed = those who qualify but my gut feeling is telling me they will be a problem. They filled out the ap, all the info is there ..but I do not like them so I stall …when they call I say…I am still processing an application I need more time. Now go ahead and sue me for discrimination. they usually find out later that the place rented out already.
application that cannot be processed (incomplete) = deadbeats who cant put all the info necessary for me to process. When they call I say …fill out all the information. 90% of them never does..
applications approved = those who check out and who I like

do I discriminate? Maybe …go ahead prove that

I am worried about an accident on my property. $600K judgement and my umbrella policy declining the claim due to some nonsense technicality. that's a game over for many of us. and it does not matter if u have ur properties in LLC or not. if u do all the work urself or you are the one who hires out ...LLC will not help. everybody gets named in the lawsuit. if u lose ..you, all ur LLCs and all other assets u have interest in are at stake.

It is funny when I read about “my attorney advised this”, “ my accountant suggested this” …many of you fail to realize …this is not YOUR attorney or YOUR accountant. Unless you have a strong long lasting relationship with the guy or it is actually you who pays 80% of his salary (cuz all he does is working for you)..then …it is just a guy who SOLD u some billable hours ..that’s it ! so whoever will represent me during those tough times…is not on my side ..he represents himself, trying to suck as much as possible out of me or my insurance. that's my worry ...

I recently purchased 1BR condo on the 3nd floor. It has a balcony. In my opinion it might be a liability. The way its built asks for trouble (1 structure 3 floor high provides support for 2 balconies on 2st and 3nd floor) – its old..not sure its stable etc. I have addressed the problem with HOA and building property management– they don't care – they are only interested in my HOA dues.
Can I specify in my lease agreement something along the lines: it is prohibited to use a balcony, using a balcony poses a risk of an injury and it’s a violation of the lease etc. If a tenant chilling on the balcony falls down (rail was faulty or thw whole thing collapsed)…will they have grounds to sue me ? what shall I do to protect myself and my tenant ?

After that happened ...did you see your insurance premium go up a lot ?