All Forum Posts by: Ralph R.

@Heather Frusco if you say so

@Heather Frusco. The factual downside is that you pay for x dollars of liability coverage to protect yourself but in the event of a liability suit you split your coverage with the PM. It’s like covering both your cars with one insurance policy. They would both be underinsured. You buy your insurance and he buys his. Simple. RR

@Heather Frusco. The whole point is that if those law suits would have come to fruition you would have had only 1/2 the coverage. The Pm would have had the other 1/2 The Pm should carry his own insurance. In Colorado it’s the law you have to provide a place to live. Your PM should have a clause in his lease requiring the tenants to carry renters insurance. Why doesn’t he have that?? That’s SOP. Your insurance company is the one that’s going to fight to lawsuits or not. They may decide to settle. It’s their money not yours. They are also the people your PM’s attorney would be dealing with not you. Your involvement comes after your insurance company settles. That’s why you pay the insurance company. RR

@Heather Frusco. Heather you we’re not sued you are talking about a fire and comprehensive insurance not a law suit and liability insurance. Two clearly different things. Comprehensive insurance covers the building and if you had proper landlord insurance it would also cover your loss of income. Colorado requires that the landlord also pay lodging for a displaced tenant if the property becomes unlivable. Colorado landlord policy’s also cover this. This is NOT liability coverage at all. It’s compressive. Liability which was the topic of discussion here is if somebody got hurt in the fire and you would have been sued for damages. In that case you have a dollar limit clearly stated in your policy that would be split between you and your PM. The court could award damages from you and damages due from the PM. Your insurance would be liable for the amount stated in your policy, 1/2 of that amount on your behalf and the other 1/2 on the PM’s behalf. You essentially cut your own liability insurance in half by doing this. Ask your insurance agent. If your attorney didn’t understand that then you need another attorney. RR

@Thomas Wang. I’m thinking about selling.

@Farrukh Madaminov. How do you do owner financing if you don’t own the property free and clear?? RR

@Micah Kohls. I see a big red flag here. My wife immigrated here from Thailand. When she applied for a work permit prior to receiving a green card or any other immigration documentation she had to get a social security card. I am unaware of the rules about an EIN number I do know you cannot work legally in the USA without a social security card. I'm not sure how you get preapproved for a loan if you cannot work and repay the loan. I don't see how he can take owner draws from his LLC or entity ( that's what an EIN is for) without reporting to social security. But I'm not a tax expert. RR

@Brittney Guy. I have 2 duplexes in Pueblo. I also worked for Safeway there. I worked at all 4 stores as a meat cutter, and managed one meat Dept there. The one that was referenced as having closed by the other poster was the newest one. It was the flagship store for that whole southern Colorado area. I don’t know if they closed that store but there were 3 other ones in Pueblo when I worked there. As to the rentals the first ones I bought were there. I still have them and they have been good producers. I have had very good luck keeping them filled until recently. I had one half of a duplex go empty. Every time some body goes to look at it the tenant across the street hollers obscenities at the PM and perspective tenants. She has called the police but they don’t seem to be much help. I would say it might be smart to do a lot of research on what area you are buying in. The duplex I am speaking about was in a good area at the time of purchase but in 5 years I think that area has slipped. I’m thinking of selling that duplex but haven’t given up on it yet. RR

@Vincent Pirrone. I forgot to mention I was 55 when I started out. I moved to Alaska with a dog, 3 duffel bags, and $100 in my pocket, and the payment for that 1st house. Not even enough money for a return ticket. I had a 90 day job hauling fish waiting for me. That’s it. Value of the house? 98,000. I owed 136,000. Figured I would lose it but determined to keep it. RR

@Vincent Pirrone. You gotta understand something. Rome was not built in a day. Failure is sometimes the foundation to success. My first Rental was bought at the top of the market, was at one time rented for $100 a month under the payment, I managed it from 3000 miles away and on and on. Today it works (12 years later). It taught me everything. I worked it, learned from it, and today it pays me. But I paid hefty for all those lessons. I would buy a house anywhere in the USA and not be afraid to try to make it work. I’ve owned 5 different business’s each with varying success. The key to any of them working is the determination to stick with it make the best outcome you can and go on with life. Your within $200 dollars a month of a break even situation with your house. What happens when you buy another just like it move into one half and rent both sides of the one you live in out?? Keep hanging on. Get another job and pay your debt down, don’t split your focus on real estate starting another business. Stay focused and keep moving up. Don’t set your goals out of reach. Make your plan and work your plan. When you hit a wall you change your plan enough to get around the wall and keep moving to the goal. The key is always set an attainable goal and then keep moving word it. RR