All Forum Posts by: Ryan Fox

It's always a good idea to do estate planning before you start investing in real estate.  In Indiana, this probably means creating an Indiana living trust, placing all your assets in the trust, then having the trust lend the investor money, but consult an Indiana attorney to confirm.  Good luck!

@Taylor Rees You'll need a dedicated LLC bank account, so price out the cost of getting an LLC bank account. If the bank account requires a minimum deposit, that's pretty much the same as a fee. Also, if the property is out of state, you'll need to appoint an agent for service of process, so price that out.

@Royce Talbo- Don't take any of this as legal advice, and get a local attorney to advise you on your own situation.  I'll talk in general about some of the things to consider in creating a partnership.  You're right, there are a number of risks in creating a partnership. 

1) Is it worth paying an attorney to set up the partnership correctly?

2) If you're partnering to buy a long-term asset, such as a rental property, will your heirs automatically get along with your other partner(s)?  Is the survival of the asset after your death important to you?

3) It might be better to do a joint venture - a short-term partnership - with a prospective partner to see how you both get along and then see if a long-term partnership would make sense.  You could just repeat your joint venture over and over (i.e., do multiple flips, wholesale deals) without doing a long-term partnership.

4) The LLC may or may not protect you depending on the type of lawsuit, where the lawsuit arose, and the state the LLC was formed in.

(The above is by no means a comprehensive list of things you should consider when starting a partnership.)   

@Jimil-Anne Linton- Sounds like you have some good habits working for you.  It's too early to invest in stocks.  Build up your cash reserves until you have about six months of expenses saved, and then re-visit the issue.  An expensive repair to the Prius and some hefty medical bills could be disastrous without the cash savings.   

@Kyle LeBaron- Recommend following up with your MO attorney.  I have recommendations for attorneys I use out there if you are looking to work with someone else.  Which PM is it, if you don't mind me asking? 

@Jimil-Anne Linton- Use this time while you're on the repayment plan to build up cash reserves and make good credit choices to rebuild your credit.  It may be a while before banks can offer you favorable terms on any loans.  Continue reading and I would recommend Set For Life by Scott Trench before making any large financial decisions.  You're on the right path!

@Mary B.- Not in WA state, but I usually use the site avvo.com when I'm trying to find an attorney out of state who's not in my practice area.

@Alphonso Fletcher- You could pay many thousands of dollars for a consulting service, or you could simply use what's available on this website.  The Book on Flipping Houses by J Scott is a good start.  Listen to the BP real estate podcast starting around episode 100 and listen to 100 episodes and you'll get the picture.  

Are there particular legal questions you have?  Reach out to me directly if you prefer.  

@Zul Hirani- Agree with Rob Massopust.  It's easier these days if the tenant is at fault.  However, it can still get complicated if the tenant files for bankruptcy.  A bankruptcy generally stays all legal proceedings against the tenant and requires the attorney to go into federal court to get relief from the stay.  It's usually more cost effective to do "cash for keys" instead of file for eviction if that's an option.  

@Hany Morsy- Definitely worth consulting a real estate attorney in your area to understand your options.  They would normally look at the whole chain of title and see where the defects are.  When I do quiet title actions in California, it's pretty common that there are people or entities that are no longer in existence, so we're not able to serve them with the lawsuit.  We end up publishing the lawsuit in the newspaper to provide them notice of it.  Again, it may work differently in your area, so consult an attorney in your area to understand your options.