All Forum Posts by: Patrick Dundon

@Carl Fischer

Hi Carl,

Thank you very much for the advice. When you say get an equity line, is that so if there was an event where we could be sued, lawyers would be more inclined to go after a clear property then one with a mortgage or loan? By the way, when we hit six months of ownerhsip with the paid off property (January) we plan to pull the equity out for our next deal.

Thanks,

Pat

Hi all!

My business partner and I own one property and have mortgages on the other two. We are currently 50/50 on everything. We carry a million dollar coverage policy on each rental and we have our own separate umbrella policy's. Should we have a legal partnership created at this point and if we did, could we even put the properties with loans into an LLC without them calling the loan?

Not sure what the best move at this point is or if we are ok with the current situation?

Appreciate and advice,

Pat

Hi @Lance Lvoskly and @ Paul Allen,

Thank you both for the advice. Another concern/ issue I have is out partnership. We own one property and have mortgages on the other two. Like I said we are 50/50 on everything. We carry a million dollar coverage policy on each rental and we have our own umbrella policy's. Should we have a legal partnership created at this point and if we did, could we even put the properties with loans into an LLC with them calling the loan?

Appreciate and advice,

Pat

Hi Lance,

I appreciate the advice. I was not sure if we needed an LLC or legal partnership. How we operate now is that our tenants actually pay our property management company and then the management company pays into our joint checking account. So when tax time comes, do we file our own separate returns? And we would each claim 50% of income and 50% of taxes as part of our own individual tax return? Sorry if these are bad questions but this is the first tax year in wich I have had to prepare for this secenario.

All the best,

Pat

Just to add to this. When we have expenses, over property manager invoices us and it's paid from the shared joint checking account. 

Hi All!,

My business partner (friend) and I have closed on three properties this year. We are simply 50/50 owners of each property and do not have an LLC. My question is when we claim expenses for the properties will this affect us or will it just be we each get to claim 50% ? We have a joint checking account for which all bills/expenses are paid out of and income taken in is deposited. We keep very detailed records but I'm not sure how this will work come tax time. Does anyone have experience with this type of situation?

Thank you,

Pat 

Hi Frank,

Thank you for the reply. Yes the MF's are 4 families or less. I used Geico because I have my auto and renters policy with them. 

I will take your advice and reach out to some insurance agents to see what the best way to do this is. 

Also, for each property, I carry 1$ million coverage (rather than the typical 300k). Do you think that coupled with an umbrella is sufficient protection?  

Thanks,

Pat

Hello, everyone.

I just added my 4th multifamily property and was informed by Geico that they would only allow me to carry four homes on my umbrella policy. Was wondering if anyone had this problem and had to resort to a commercial umbrella policy and if you have suggestions on the best way to go about that. I also know the LLC route could be an option. However, not sure if the bank would call the loans due, especially if rates climb in the near future.

I need to figure this out as we are looking at our 5th property at the moment and I'd prefer to have that extra layer of protection on each one. 

Appreciate any advice,

Pat

HI Jim. Thank you. The owner has agreed to let us get the new tenant in with the only stipulation being that she wants to meet the tenant beforehand.

I'm assuming if she does not say anything then don't bring up transfer liability to myself until I have to?

- Pat

Hi Everyone,

Ove the weekend I made my first rental purchase of a multi-family and have a question. The bottom unit is rented and will stay and the top (owner used to occupy, now empty) the owner agreed to let us get a tenant in there before we close on the property. If the owner agreed to this and it is about 45 days from closing, is the liability of that tenant on me at this point and if so what can I do until I have HOI on the property? I do have a 1 million dollar umbrella with Gieco at the moment.