All Forum Posts by: Ron Feinsod

I have two properties in Self directed IRA's. I also have two duplexes, one townhouse and three single family homes. Of those not in the self directed IRA's , three are in an LLC. Since I use only one checking account for all of them (not IRA's) I think the LLC could easily be considered not valid. The question is, do I remove those in the LLC and close the LLC or do I put the others into the LLC? The purpose of the LLC is protection of personal assets, but I don't think it really would as it is currently being used. On the other hand if I remove the LLC then everything I own is potentially exposed. My properties are well maintained and I attend to any problems very quickly, but you never know!

I have several rental properties that are in an LLC. It is my understanding that the purpose of the LLC is to protect the owner from liability issues and that in order to do that each property should be in it's own LLC.

This is both expensive and complex as it requires separate checking accounts and tax returns for each property. In addition there are insurance issues as these are considered business's and I have found that I need to carry a separate Liability policy on each property.

My thinking is that it might be simpler to remove the properties from the LLC and carry one large umbrella policy for liability. Any guidance on this would be greatly appreciated.

I'm curious about what type of experience people have had with these home warranty companies. Do they actually replace A/C units or do they just keep repairing them at $75 - $100 per visit?  How do they determine when the unit is beyond repair? What quality of unit do they replace with?

I have thought about these warranties and just can't get comfortable with all the fine print. There seems to be a lot of legalese that would allow them to exclude major expenses on their side.

Why not just have it in the contract that the mold remediation must be done, at sellers expense, prior to closing. Make sure that they are required to hire a licensed remediation company and that they provide you with a copy of the contract for the work and proof that it has been completed.

Thanks Joe

Not hiding anything from buyers, however I would rather not have them privy to my profits. I guess my next question is, since these folks want to but several properties, they probably do not want separate LLC's for each one. So, with that in mind is there another way to handle this? Also, I think it might get expensive to keep setting up LLC's. I am new to this type of transaction. My experience is really in buy & hold rental properties.

I have some investors that want me to find rehabs for them. I know a contract can have a provision for assignment. My questions is how does it work so that the investors do not see the spread between the seller and their purchase price. I don't want to incur the expenses of double closings. If the seller agrees to a price of 50k and I want to make 5k, how do I keep seller and buyer from seeing my profit? 

I have a question about the "double close" deal. How do you work that out so that there are not two sets of closing costs? I have never done wholesaling, however I have some investors who want me to find them some properties and I'm not sure how this works. Any advice on the best way to handle this would be greatly appreciated.

Can you re-negotiate the mortgage? How long can you hold on with a $2400 yearly loss? If the property is a rental, ask your accountant how the net effect of the depreciation effects your Federal taxes. The net loss might not be as much as the gross loss and it is possible that it might actually work in your favor.