All Forum Posts by: Michinori Kaneko

@Jason Malabute I am an investor from NY.  I have some potential lenders and an agent that could help.  I also have recommendations on which PMs are good (and which ones you absolutely want to stay away from) as well, if interested.  Feel free to drop me a PM.  

@Patricia Steiner this is great, thank you for your input!

@Patricia Steiner omg i see.. good point. do i need to document that in the document i'm signing with the tenant to break the lease, or just document as note somewhere on my records? Do you think i should also note that the replacement tenant is planning to pay more than the current tenant?

That particular tenant applied for a different property i had few months back but passed on it because the rent was a little higher than this 3br unit, but not desperately looking for a 3BR i guess!

@JD Martin Yes agreed. I didn't write the lease, this was written by my former PM that i no longer use.  I actually wasn't aware we had 2 months of deposit until my new PM told me either. i wasn't trying to squeeze out 4 months of rents from someone, but my concern was voiding the lease from legal perspective.  In your first option, how do you ensure that there are no damages beyond normal wears and tears, or go after the tenants if you found damage? 

@Patricia Steiner yes I was going to do something similar to what you suggested (and have a lawyer prep a document that outlines these, which the cost will be paid by the tenants).  So as long as there is a mutual agreement with tenants, there won't be a legal issue or deemed as "favoritism" to let a tenant out early from their lease? My no.1 concern here is if i sign this agreement and let them out early, if there are other tenants that wants to get out of lease in the future and i tell them no, could this be deemed "favoritism"?

Have you considered buying a duplex outside of Fort Wayne (e.g. Huntington).  there are tons of duplexes in huntington area under $200k.  Just a thought. Like you said, the market is a sellers market now. Even before that, multi family prices were ridiculously high in the fort wayne market in my opinion.  

Hi,

i have tenants in a 3br apartment (three guys that shares). their lease doesn't end until 12/31, but one of them is getting engaged and wants to move out, along with the other two. The lease states if the lease is terminated voluntary early, then they forfeit the deposit (they have 2x month deposit) + 2 months of rent. They don't want to use this early termination clause, but I also have incentive that there is a strong candidate that wants to sign a lease on that apartment for $50 more per month. Is it a dangerous bridge to allow early termination of current tenant with more favorable clause (e.g. only forfeit deposits, they pay all legal fee to prep docs to break lease legally, etc.)? My concern is that if I do this with one tenant, if another tenant wants to leave before lease term end and I don't allow it, will it be deemed as favoritism, or as long as I have a formal documentation of mutual agreement there are no issues? Thank you for your help in advance.

@David M. I can try asking but I doubt they would do that but guess i could give it a try!

@David M. Well sort of, yes. Chase Ink card is a business card that gives 5% points on cables/internets/office supply. I have that in my personal name (made one before I had an LLC) and right now with this COVID thing chase is really tight with business card approvals so i know I won't qualify if I applied for another with LLC name. I was more thinking about it as my chase freedom card (personal card) has a one time offer where I can get back to like $50 or something 10% cashback on AT&T and i use AT&T for an apartment building I own. This apartment was the first one I did everything in LLC from the beginning (except for some expenses I incurred before the creation of LLC) so I wanted to keep it clean as possible, but tempting to get those "Free" rewards. I guess at the end of the day I can "do" whatever I want to but I need to think about if that $50 (well, more to come in the future though) is worth something going wrong down the line and could potentially pierce the corporate veil. Thanks for your input.

@David Daily Yes I am aware and I've read many threads but since this was coming from a lawyer of my agent, I thought maybe I was missing something. At this point I've maxed out my personal loans, so any further investments will be under LLC name to begin with so I will have no issues.

Out of curiosity, would think using a personal credit card would cause the same issue? For instance, if I had an AT&T service for a property held in an LLC, and my personal credit card had 10% cashback on AT&T, If i use that credit card to pay for AT&T bill for a property held in LLC, then the LLC bank accounts pays for the exact amount to the credit card, would that still be consider mixing, or would be treated as someone paid for you, and you are reimbursing them? Thanks for sharing your thoughts

@Aaron K. the issue here is if the property is owned at LLC you can't get a conventional loan which gives me access to 30 yr fixed low interest mortgages.

@Benjamin A Ersing i don't understand your point. I do use a property manager, but that doesn't protect me from legal standpoint (yes I have insurance but would like the additional protection I can enjoy from owning the property under multi-membership LLC. Under this, even if I get sued and owes a massive liability, they cannot take away the actual properties, just the income generated from it).