All Forum Posts by: John Woodrich

Laws vary by state - he didn't mention anything about evicting the tenant nor that this was based on non-payment of rent.  Sounds like he is simply planning a non-renewal of lease.  

In any instance - the June deadline doesn't matter as his tenant doesn't have a pending assistance application.  https://homelinemn.org/phaseou...

I am not an attorney.

@Aaron Rouser QuickBooks works well but you have to pay for it.  In the beginning keeping overhead costs down is important.  Many of our clients like using Stessa as it is a free software product and works well.

Good luck!

Hi James,

I would recommend setting up a quick phone call with Brad at https://minnesotalandlordlaw.c...  He is an expert in MN landlord law and sets up a lot of LLCs for his clients.

Good luck.

John

@Daniel Anshus thanks for the mention.  You are correct - we are near capacity.  Open to taking on clients who are OK extending but we can't take on anymore work before 4/15 right now.  

Noah - if you are selling it in 2022 here feel free to reach out after 4/15 and we can discuss any tax questions you have.

Thanks for the mention.  As @Tim Swierczek mentioned we are near capacity but are open to taking on clients who are open to us filing an extension.  Most of our practice revolves around real estate investors and I personally invest in real estate.

Thanks for the mention Dan.  We are pretty booked for 2021 taxes unless you are open to us filing an extension for you and filing your return after 4/15.  Just don't want to overcommit which would require we reduce service levels if that makes sense.

Nice to see another Chisago county investor!  We personally own a handful of properties up there and it is an area we are hoping to expand over the upcoming years.

Hard part in a syndication is vetting the operator and making sense of their projected financials without any knowledge of the major assumptions.  Many of the vocal/easy to find operators were not doing syndications 15 years ago.  The last 15 years has been pretty easy to make money in real estate as prices have continuously grown and cap rates have continued to compress.  Interest rates are also crazy cheap.  What has this done?  Given syndicators and syndication investors increased confidence in how "easy" it is to make money under this business model.  As they say in the investment world - past performance does not predict a future results

How will things look when the market interest rate jumps 75 basis points and expenses continue to rise with inflation? Hopefully these are accounted for or tested in the financials prior to the offer but it is rare for projected financials to show profitability decreasing over time as it is not what the investor wants to see.  

I think these can be great investments but we all have to acknowledge that there is some risk.  The projected return is higher than the OPs bond investment but the risk has more than doubled.  When we invest we have to consider our risk tolerance and make an informed decision with the information available.   

If you are experienced in the buying/selling process, contract law, and real estate terminology you could consider a limited broker's license. It isn't for everyone, people who don't know what they are doing can get in trouble and may get taken by an experienced realtor but with the license you are essentially an agent for your self only. Can buy and sell on your own, get access to the MLS, receive a buy side commission, etc. Not a lot of information on it as there aren't many consumer protections out there for "protecting yourself." If you get the license you may not legally be able to be represented by a realtor so that is something to consider. Some may debate this but it is written in statute.

No need to set anything up until you are in contract to purchase. I have had many clients pay to organize a company and have the company dissolve without any activity. We add "or assignee" to our PAs and let the seller know we would be setting up a new LLC before the purchase. As mentioned above - depending on the loan product you may not be able to purchase in the name of your LLC. This is common for a conventional loan/FHA product. You can purchase 1-4 units with a commercial loan which would allow you to title in the LLC however the loan terms aren't typically as good. 5+ are typically commercial loans so no issues titling directly to an LLC. Talk to your lender first.

Filing an eviction in this case is DEFINITELY overkill.  An eviction will destroy their record and make it hard for them to find another place.  Simply give them a non-renewal letter with at least a 60 days notice.  Can be hard to find a place and nobody likes moving so the human side of being a landlord may lead you to give them more time.