All Forum Posts by: Michinori Kaneko

@Aaron K. to not risk getting the conventional mortgage being called by moving the property into LLC. I had the same initial reaction as you, but my agent said she ran it by her attorney and the attorney saw no issues with protection side structuring it with trust owning the properties and LLC collecting all the rents, so I figured maybe its ok to do it with person owning the property and LLC collecting the rents.

@Sandeep Reddy Try AG Management. I withdraw my referral for opendoor i made above and will delete my comment because i no longer recommend them. 

Hi,

I have an agent that I use that invests personally, and she has the property under her trust, but all her rental incomes/expenses goes into her LLC, while both the LLC and the trust are wholly owned by her. My situation is slightly different in that 1) my LLC is multi member between my wife and I, 2) the loans I have on the property are conventional loans (can be called if the title transferred) under my name.

Does anyone know from tax and legal purposes if there are any issues with owning the properties under my personal name (some properties are under my name only, and some are 50/50 between my wife and I. All mortgages are only under my name), while having all the incomes and expenses run through LLC owned bank account? I see a lot of questions about getting conventional loan then quit claim the property into an LLC, so was wondering if there is an issue with this method (which eliminates the risk of bank calling the conventional loan). Thank you for your help in advance.

I invest in Indiana (Fort Wayne)  because it's a landlord friendly state and the numbers make more sense than my home state, NY.  The market has been very good in the past few years but getting much more competitive now because I think there are lots of outside money flowing into the area.  Because there are LOTS of investors buying the house there is constant shortage of good contractors which is a little stressful.

@Vinnia Tjhin if you decide to invest in Fort Wayne feel free to PM I can point you to the right direction to get started :) I know i wouldn't have started out if Camilla didn't reach out to me here on BP when she did and pointed me towards the right direction at first!

@Steve Morris Def didn't know about it until last week when we were trying to rescue the deal after it fell apart once.  It was recorded as a "exception item" on prior title (and not sure what it means by "exception").  But then again, we've been verbally talking about this offer since February but we didn't sign a physical purchase order until late May so maybe it was technically within 30 days.

@Ujwal Velagapudi  Thank you.  I am past the diligence period, but deal actually fell apart once and this issue didn't come up until we tried closing at the very end so I think I can walk away any time if I needed to.  Lease says they have exclusive usage authority of small laundry area within the building.  I believe the core problem was that when they came to look at the property they needed the seller to modify water pipes and drier hook up, and that would have cost the seller a fortune to make that change so he decided not to pursue.  Then, he installed a free washer and drier on his own.  I have suggested that option about getting written agreement from the seller, but because how vague the contract is, the title company and closing coordinator suggested that we do not go that route.  We are trying to settle out of the lease before closing.  I am not happy im paying a small portion of it but i'd rather be free and clear than worrying over next several years so I think we will go that route.  thanks for your input!

@Wayne Brooks i do, because on the lease it stats that there were 77 units in the building, but now there are only 62.

@Steve Morris Thank you.  You are right we are actually trying to settle out of this lease before closing.  I feel like they probably make more money from something like this than actual laundry service lol

Thanks for your input.  I think they may have tried contacting the seller and seller just ignored.  I'm not 100% sure.  I'm just stuck on the part that says no reduction of living units without written consent, and i know the seller has breached this so I don't want this to come back to me.

bumping to see if anyone can help.

Hi, I am in contract to close on an apartment building, but while closing we found that there was a lien on the property. Basically it's a lien stating that the service company (lets just call them company A) gets exclusive right to the laundry room in the building.  The lease stats the lease term is 7 years starting from final installation of the laundry unit.  There is a clause that any person who takes over the possession is tied to the lien as well.  There were no coin operated laundry machines installed (actually there is a free washer and dryer in the apartment building) so technically the lease has not started yet.  I have no intention of installing a coin operated machines in the apartment.  One concerning point is that the contract states the number of units in the apartment, and that the lessor shall not reduce the number of living units without prior written consent.  The number of units on there is way more than actual number of units that the building currently has, so I assume the current owner has combined some of the units (but most likely without a written consent).  This is a very great deal from the numbers perspective, but should I be worried about this Lien? I know i will most likely have to go through the same issue when I sell the property but should I be worried otherwise?