All Forum Posts by: Nathan Williams

  Im getting an investment loan where the appraised rent amount must met or exceed the mortgage payment.  Long story short the first appraiser the lender used was horrible and gave a horrible appraisal amount of 30% lower than anything you can possibly get in literally anywhere in California (1 star yelp reviews across the board on how bad this guy is).  So now we are ordering up a second appraisal.  This time we want to take no chances and communicate with the appraiser before they come or when they arrive to do the appraisal.  

Any advice on how we should go about this?  We were thinking we have our agent relay some comps to the selling agent to give to the appraiser when he arrives or should we be a little more direct?

thanks 

Hello my wife and I are looking to buy our next rental property under a LLC in California and had a few questions.

Would making the LLC a 2 member ownership impact how the LLC could eventually get business loans compared to it being just a single member? Typically would both of us have to guarantee the loan?

Is it highly recommended to use an accountant to file taxes for a real estate LLC? I know it is for a S-Corp that my wife owns but I'm curious if a LLC is something I can manage as a resourceful amateur who currently bookkeeps and files taxes for our multiple rental properties that we own directly.

Thank you

I'm not a fan of using turnkey providers as obviously they are in the business of making as much profit for themselves as possible which would cut into your potential profits.  With a little more legwork you would earn more by buying well maintained owner occupied homes and finding your own trustworthy property manager along with an investor friendly realtor.  

RUN! even 4K would be a huge rip off let alone 40K.  

Banks are required to report deposits of 10K of greater.  Doing deposits like this to avoid this is called structuring and is a felony.  Im not sure if you could get an any legal trouble as the payer but I'd be very cautious.

By ungrounded, im referring to homes that dont have a ground wire in some or all of their electric sockets.  These homes typically have 2-prong sockets instead of 3 prong.

I invest in the mid-west (Indiana) but dont live in the region.  Nearly every home I purchase or look at (SFHs in C class areas) have ungrounded outlets.  So far we been paying to run a ground wire on the units but now I'm thinking is this really necessary?  Im not trying to do a total rehab on my properties just make them C-class rental ready.  Apparently whoever has been living in these properties over the years have been dealing with it just fine.

Thanks

So I read in Indiana you cannot charge a "cleaning fee"... but what to do if your tenant left with no attempt to do basic cleaning (sweeping, vacuuming, moping, cleaning bathrooms and kitchens)?

I recently had a deal fall through for a SFR purchase in Indiana after a lease back request from the seller. I was frustrated that this desire wasnt communicated to myself and my agent during our communication with the seller agent beforehand but nevertheless I was okay with it and countered their lease back request with a 30 day rent amount that was roughly half of the market rent rate. I thought this was beyond generous yet the seller refused this demanding to not pay.

I hate to see a deal fall through for such a relatively small amount but my gut says if they made a big deal over something so reasonable imagine the issues once the deal closes and I technically become their landlord.

Well anyway, I was curious what is the going arrangement for lease backs in a hot market?  Are buyers really letting sellers do 30 day lease backs at no rent amount??

the short answer to this is YES.  Two 1 year old positive credit lines will look better than only one credit line.  It also helps solidity your average age of accounts, and overall credit utility.

edit just realized you are in Canada, not sure how credit scores work out there.