All Forum Posts by: Michael Lewis Lee

Hello Theresa!  Once you can confirm the zoning, I would suggest to discuss this with head building inspector for the subject property and find out what to look out for.  The existing resident area might have some building code issues.  Just realize that some state and city laws are different.  A local well known and experienced general could help you

That being said, I had about 30 years of experience in Dallas County as well as some of it's suburb cities and they all have different outlooks.  Most of my experience was in residential remodeling.  Chicago may not be that different than Dallas.  What may be in firewall construction between the two units.  The attic will probably have to be fireproofed between those two unitsp

natehat would have to be constructed with more framing and/or plywood or drywall to eliminate a possible draft between the two units from attic floor to ceiling.  In the living space between the two units, you might be required to build a firewall which is like a double famed wall about 1" apart and two layers of drywall on both sides.  Things may have changed over the last 10 years.

That's one good reason to talk with an experienced building permit person and see what they expect or require in your construction.  An experienced and well known general contractor can help you.  Their experience with firewall construction can usually be done right the first time.

Hello Eric!  I have been reading a highly recommended book about advertising methods.  It says that normal mail advertising and DM do not work very well but do what works and follow up is very important, even right before they get it to tell them to be on the look-out for it.  Yellow letters and handwritten and colored envelopes seem to work better.  Track what you do and know the cost per sale doing that method.

Being involved with community events can help you.  You might use your own booth there providing what you don't sell but it can be used as a marketing station for what you do with flyers or just business cards.  Both should be professional looking to promote yourself the right way.  Try to keep up with those you promote to so you can follow up with.  

This is another way you should track to be able to calculate the total cost versus your sales so you can see what works.  In case your interested my current book is titled "Get Clients Now!".  The main thing is to do what's working and determining it's cost per sale created.  Blogging, article writing, and audience speaking can help you most.

It also mentions the importance of targeting to the people that would be interested in what you are selling.  They and others that are successful say to follow up over and over.  Do blogging and speaking to like-minded people.  It sounds like the closer you can be, the better.  Just to make you aware, is that I have been in real estate and construction over 30 years.

Good luck to you!

Hello David!  It's either land or building except for any personal fixtures.  I have never heard that as a problem and I have lived on this planet earth for 63 years and have been in real estate for about 45 years.

Good luck to you!

Hello Denise!  You give them lease copies when they ask for them.  There are no laws or rules that say when you should give that up.  Buyers should want to see them before the buyer closes and they should know the tenant's status and rights, if any , and what their obligations are, if any.

Good luck to you!

Hello Zaneta!  Welcome here!  This is a good reason to take of an experienced tax consultant on real estate questions on this deal.  You do not want to listening to anybody that has no experience that type of deal estate transactions.

That being said, I would do a title search to confirm her ownership and show that their are no liens on that property and I would get title insurance as protection.

How well you know your sister, will give you various solutions. From total trust to conflicting. I suggest keeping your using a recent relationship.

Good luck to you!

Hello Roy! An experienced tax consultant is probably a good choice for you right. Borrowing, especially refinancing for cash, has gotten a little tighter right now. Maybe a money broker might help you right now but it will be tough to get a loan over 65% of ARV or "as-is" right now and having less than 30% of ownership will make it harder.

Finding an experienced money biker might help but the interest rate might be 12 or 15% and short date term.  It's location will probably come into play too.  A money "wealthy" partner may help you too if they are willing to guarantee the loan.  

If your are struggling for a decision right now probably means you'll struggle trying to get a loan depending on a guarantor that can answer some tough questions and the property's location and it's future potential.  You'll probably have some difficulty getting what you want and hold a little longer depending on the positive cash flow.  

Right now the future is too uncertain but most wealthy investors are fairly optimistic and there is alot of money out there in either private or hard money but their requirements are fairly high right now because of the future's uncertainty.  This virus pandemic will probably be used against you.

The number of LLC owner's will probably make it harder. Be careful who you take advice from. Their actual experience will matter.

I wish you good luck!

Hello Randall!  I would pay attention to the demand in that area as well as the location and curb appeal.  Do not be in buying anything that and we do not know the future economy and it's effects.  The area completion and how they are doing and why.  Parking availability is another important thing.  Quite often they use a garage for storage.  The school district rating and the school's location or a bus stop.

Are there any needed capital repairs?  It's elevation could matter.  It's closeness to highways or business traffic could matter.  Is it in a growth path.  There are many things to cover.  Did you evaluate on a worst case scenario?  Do not make any decisions quickly.  A good deal is a good deal.

How much positive cash flow are you projecting.  Are any big employers moving to that area?  City planners could inform you. Are there any train track or creeks near that place?  Are there any amenities nearby?  Is their any retail close by and could it effect your rental rate?

Good luck to you!

Hello again Derrick!  I'm sorry but I just accidentally saw this.  I think Dave was suggesting your possible solution.  Again, I would say to discuss your issue with a person that gives that legal advice everyday who is employed to do that for a living.  I have never seen that issue discussed before.  I agree that it's pretty murky and you can choose to tell the IRS or keep it secret.  They do not know what they are not told.  Just do it in a way that is legal.

Best wishes!

Hello again Stephen!  Anything you put there will look different than the existing wood floor you have now. My opinion says that product will look better if it is totally different.  Anything light colored will stain.  Do not forget is that as long as it has a good installation, it will look fine with a quality product.  Most times a clashing color will look good at the transfer as long as you choose a product you like.  Remember the ease of cleaning it.

Best wishes!

Hello Stephen!  I use to own a flooring store in Dallas county and I have about 5 years of experience with all types of floors but I do not know everything.  It really comes down to your plan, is that ownership going to be short term or long term?  If it's short term I would choose a dark carpet that is stain resistant.  If it's going long term, I would go with a flooring that is very cleanable and is an opposite color of the existing wood floor.  Do not try to match it, just use one that is complementary.  

I was a construction manager and a licensed real estate broker for about 30 years and that might have been part of my recommendation.  I have dealt with many homes around Dallas.  The flooring business is always changing and matching is difficult but not impossible.

I do not know where you are at and matching could be harder.  With a long term solution go with tile, fake wood but a low maintenance cost should be considered. 

You might get the tenants to pay for replacing the carpet with comparable carpet and it could be used for your ultimate solution.  Let them know about your solution.

Good luck to you!