All Forum Posts by: Michael Coco

 Hard money lenders lend money. You put a down payment on the property. Many hard lenders will only lend up to a certain percentage of the property value. You would need to cone up with the difference, which would be your “down payment.” 

Your Illinois LLC can own and hold a property in Kentucky. But you should check Kentucky law to see if you need to register the IL LLC in Kentucky. You can usually register a foreign LLC in a different state for a fee.

I suggest creating an LLC to manage your rental and opening a separate bank account for the LLC. Deposit all business income and pay all of your business debts through that account. This will help reduce your liability and will make things easier at tax time.

The safest bet is to try to get a variance from Union City. though clever, your combined unit lease agreement would likely cause trouble if ever scrutinized by the Tenants or the municipality. 

You cannot evaluate liability based on a snippet from a contract. For example, how is the tenant? It looks as though the language is written for a singular tenant (i.e., apostrophe after the "t"). Was the husband or wife the Tenant? All important questions. Anyway, I agree you should have this evaluated by a lawyer. The state the property is located in, homeowners' insurance policy, and whether you rented as an LLC or individual all make a difference. Personal injury claims can be significant. Good luck.

What is the purpose of your LLC? Will it be to hold the property? To act as the property manager? Why are you forming it? Transferring an asset to an LLC is possible, but as mentioned, it could trigger a Due on Sale clause if you have a mortgage.

Yeah, check that fine print and maybe consult an attorney to see if there’s a contract violation that can get you out. 

Call local plumber? 

If you go to small claims court you can’t go back later and get more on the same issue. You waive the excess. But even if you win it will be hard to collect. I agree with those who said just get as much as you can in small claims. 

Hi Zach, you could do this through a joint venture agreement, which is basically a contract. If you will be doing future deals with your co-worker you might consider forming an LLC or partnership. A business lawyer can set these up for you or draw up a contract.

As for lending, that too is typically done through contract in the form of a promissory note and personal guarantee (if you’re borrowing from a Company). Friends and family are usually okay. Just be aware that asking members of the public to “invest” in your business can implicate securities laws, which you want to avoid.