All Forum Posts by: Matt Devincenzo

I guess the first question is why? I know you said why but I mean, what does actually transferring the units accomplish? 

It sounds like they have money, and it sounds like in exchange for that money you're setting them up with an income stream. So why this specific triplex? Why not go buy a new one and not mess with the potential tax issues for you and transfers etc? Another thought you could just keep the tri-plex and gift them the net income each year...it's basically the same thing without any transferring. 

They're assigned locally by the AHJ, so it can vary from place to place. On large complexes you can look up their website and see if they have a leasing map that identifies address/unit. You can drive by and see if there is a info map/board with them available, and lastly you can go to the AHJ and lookup their addressing approval. I've done all of these locally for noticing packages that the City requires be sent on certain projects. 

Also there are probably paid options that pull public records like landglide, propradar etc, or try your local title company rep. 

Yes don't split it as that is making a determination that they are owed it equally. Make the check out to both as a "husband name and wife name" so they will both need to endorse and deposit. They can negotiate between themselves how they distribute it from there. 

If either argues about the approach you can simply fall back on the 'law'. Since the lease was with both then you need to make the check out to both, to do otherwise would be making a legal determination which is what the domestic court is for, and where they can take their issue to resolve. 

Do you owner occupy this same tri-plex, and are you in a rent controlled area of LA? 

There are several avenues to consider here, and I'm sure you can get her out but depending on the above answers it may be easier or harder, cheaper or more expensive. Which leads to another question, what is your specific ability to finance a solution? Could you invest $10K, $100K, $500K if needed? 

There are going to be three levels of addressing this 1) things you can simply go there and do anytime (pick up pet waste and throw it away) 2) things you can do given proper notice (enter the unit and inspect, repair damage etc) and 3) things you can only do given proper process/procedure (notice to vacate, increase rent etc.) You need to answer all the above questions, then identify a course of action based on those answers, and then place those actions into the three categories above. Start doing category 1 items right away, provide notice and do category 2 as soon as you can and finally prepare and get ready to initiate category 3 items based on your ability to handle them. 

What's the objective? A place that the family always thinks of and goes to for reunions or vacation? Possible income and wealth for future generations? A business/way of life to continue? 

Overall most of those may be overrated. My Mom's family grew up with two generations of the local family get togethers and knowing all the extended cousins, so did my wife's family. Now in the third generation most of us don't do it because there's a separation in what my immediate family values, and what the extended family values. We still see one another, but it's not the close family ties that once existed. I know people who currently have that, it started a generation ago and probably ends next generation, it's hard to maintain this more than a couple generations because the politics, religion and underlying values can't hold across hundreds of extended family members.

The same goes for business/way of life. Look at any farming family and most have left the industry...same for fishing, timber etc. 

Finally wealth creation, this I'd do it for. But not for future generations. Maybe they benefit and that's great, but a large part of valuing wealth and what it afford comes in the struggle to obtain it. My kids may end up receiving an inheritance assuming they already value it...and if they don't then they'll get a token amount. That remains to be seen, but none of my planning is to provide them anything more than initial opportunity.

You can just add another account to pay from Venmo and then use that account when you have a 'business' charge vs. personal. Using the same platform itself isn't an issue its the source of the funds you want to keep separate. 

Also not to minimize the issue, but if you are operating as a sole prop or pass through entity the actual damage from a mistake when selecting the account is minimal. It will have no bearing on your end of year taxes and is easily fixed on the admin side if you make a mistake. 

Agreed with the above, I'd waive the fee for a good tenant. Sticking to the lease in this case will only cause you more problems, not less. 

As far as the record goes, you can search the County Recorder for death certificates. So I'd give that a quick try before asking the tenant for it just to try and avoid asking. If I can't find it in a 15 min search at the recorder, then I would go ahead and ask. 

As far as the SD, disperse it as usual...apply any damages and refund the remainder. Depending on the lease and receiving the death certificate send the check to either "the estate of XXX" or if Dad was also on as a financially responsible party I'd make it out to "Dad, or the Estate of XXX" so he could deposit it himself. 

I'm not sure why you're disappointed. Having tenants that I can screen, get on a lease I want and at a rate I want are all good things. If the current MtM tenants fit that profile, great! If not I can replace them without waiting until Aug, great! 

Why would you expect a price reduction when there is no impact to value from having a lease or not?

There's nothing specifically wrong with your proposal, but I'd just do a rate and term conventional refi and forget the LLC. The DSCR will still have a personal guarantee, and whether reported to the credit bureaus or not it needs to be disclosed as a debt, so there's no benefit there. Your conventional options will likely be better and keeping in your personal name is much easier to manage...just my 0.02

Your looking for a 'servicer'...it isn't SaaS it is an actual service provider that will handle this. If you search the term you'll find several recommended...FCI, Madison, Evergreen, BiFi, Allied are a few that come to mind. 

As far as note structure, you'd be considering either a "sub-to" with a owner carry 2nd, or a "wrap" around first. Personally I'd suggest the wrap will give you a higher protection on default. If they stop paying you can foreclose, with the sub-to and a 2nd they could stop paying the first but keep paying you. That could potentially place you in a more difficult position to foreclose. 

And many times these deals are a bad idea. You should really consider 1) what benefit are you getting from this 2) what benefit does the buyer get? I've sold 3-4 on OF so I'm not opposed, it just seems like a lot of the recent questions for this are focused on more money without recognizing the risk you're accepting.