All Forum Posts by: Ryan Fox

@Jesse Rodriguez- Do you own the property in an LLC or other business entity? Sometimes you can file for bankruptcy for the entity and not have to file a personal bankruptcy. Cut the losses.

@Victor Hernandez- Not unless the pet is causing significant damage.  Another way to structure it is to charge pet rent instead of a pet deposit in the beginning.  It would be a $20 to $30 charge added on to each month instead of a big deposit at the start.

@Victor Hernandez- It's always a tough decision.  Don't agonize over it.  If it's their first renewal, keep rents where they are and raise the rent next year.  There's not enough rent differential to risk having a vacancy.  

@Earl Morris - You're actually on the right path by doing estate planning before you buy more real estate. I see too many investors who go straight to LLC creation and end up naming themselves or themselves and their spouse as members of the LLC without proper estate planning considerations. This can lead to a probate lawsuit in the future.

*This does not create an attorney-client relationship.  This is meant for informational purposes only.  Please continue to consult your attorney in your state.  

@Sumit Kaul- Can't really speak to that market in particular but ways to estimate the potential rent include rentometer.com, zillow.com (rent zestimate), and look on craigslist.org.  

@Kevin Drouillard- Have you tried consulting a public adjuster?  I know a guy who's helped me out of several insurance claims in the KC area.  

Tax question. I am not a real estate professional. However, I accumulate a good amount of passive activity losses from rental properties. An opportunity has come along to partner or JV with a company that does a number of house flips. I would be the capital provider and not be active in the partnership. Is there a way to structure the relationship so that I get passive income that offsets my passive losses, thus resulting in no tax owed? Thanks in advance!

@Jeff S.- Thank you for the information.  How do you determine the improved floor area?  Is that info the insurance company would already have? 

I’ve been doing private lending for a while for fix and flips.  I’m not sure the insurance requirements that I’m requesting from borrowers are appropriate.  These are the rough numbers of a deal I’m currently underwriting:

Purchase $78k

Rehab $40k

ARV $180k

What do hard money lenders require in terms of types of coverage and amounts for this type of deal?

@Colleen F. - Yes, you can still be held liable.  Every response you take will be scrutinized - how fast you provided replacement housing, how fast you filed your insurance claim, how fast you refunded their deposit, ect.  The negligence can be in how you respond to the situation.  The laws you have to follow in CA are so specific that whenever a client asks me about a situation, I need to research the law.  It's a pain in the rear end for anyone that doesn't want to pay an attorney.