All Forum Posts by: Molly Lonborg

Does anyone have access to a good neighborhood map of Cedar Rapids that breaks down the various neighborhoods by class (A to D)? Thanks in advance for any and all assistance!

Does anyone have a recommendation for a California based real estate lawyer that is familiar with triple net leases?

@Katie L. Thank you very much for this information, it is really helpful. We have spoken to a lawyer and we have a list of questions that all parties are going to answer in order to have a written agreement for a General Partnership. We have a good commercial insurance policy that covers our properties and I believe has an umbrella liability policy as well but we are going to look into that and confirm. Going the LLC route (especially in CA) seems costly and could get messy when and if we want to sell this property and use the funds in a 1031 exchange. I really appreciate your time answering our questions and if you see any major areas/holes that I'm missing please let me know!

Thanks again and have a great day!

Hi,

I own a 9 unit commercial (with two residential units) property in California and the utilities are currently paid by us as landlords. Our utilities are equating to roughly $500-$700 per month and it is taking a huge hit on our cash flow. I recently heard about RUBBS on a BP podcast and it seems like a great way to increase our cash flow even if we start by just billing back a portion of the utilities and slowly building up to 100% payback.

Can someone help explain to me how RUBBS work? I’m curious how the expenses are broken down per unit. Also, are there any recommendations for services to use? The podcast I was listening to mentioned Invoice America, but any and all recommendations would be greatly appreciated.

Thank you for your assistance!

-Molly

@Scott Smith wow, thank you so much for your detailed response! I'm still digesting all this information but it is really helpful. I love the idea of a DST. Once I wrap my head around all this I may reach out again. Thank you!!!!

@Phil Goodwin thank you for all this information. So far both properties are in the works to be purchased under our individual names. One is being purchased with a conventional 30 year loan and the other is with a HML.

One property will be a buy and hold for cash flow and the other may be a flip or a buy and hold just depends on how the market looks after the rehab. 

My partner owns other properties on his own and We are able to add these two properties to his insurance for a good rate. In this situation would we want to buy an umbrella policy for each property we are purchasing or would be safe with one policy? Or would it be wise for us to purchase a policy and him? 

Thank you again for your thoughts and advice. 

Hi,

My husband and I have partnered with another person and we have begun to buy rental properties together (we are about to close on one property, and in escrow on another). We own 50% of the properties and our partner owns 50%. We are trying to figure out what makes the most sense to keep us all protected from liability, and each other (in the even that something goes wrong/someone dies/divorce etc... all those fun things to think about :). We all get along really well and are hoping that this will become a fruitful relationship with many flips/rentals over the years. We were thinking that we should either form an LLC or a general partnership, unless there is another avenue that makes the most sense.

When we spoke to a lawyer he advised us to get a separate LLC for each property we own as it can be cumbersome to have multiple properties under one LLC especially if you want to do any 1031 exchanges, which we are thinking that we will at some point. We live in California but are investing in Michigan. I know in CA it is quite costly to set up an LLC and the thought of setting one up for each property we own sounds unappealing, unnecessary and expensive.

What are some of your thoughts on this?  

-Would we be wise to just set up a general partnership and draft something up with a lawyer, then put the properties under the name of the partnership?  If so, can you obtain liability insurance for a partnership?

-Is it necessary to set-up an LLC? If so, is it truly necessary to have separate LLC for each property?

-If the safest route is to set-up an LLC does it have to be in California or would it be better to have it in Michigan?

I know there are a lot of people in a similar situation as us so it would be great to get some feedback from all you much smarter and more experienced investors out there!

Thank you in advance for any and all help :) 

-Molly