All Forum Posts by: Ryan Fox

@Gayle Eisner- National Real Estate Insurance Group

@Gayle Eisner- You could be sued personally even if your property is in an LLC, and even if the property is paid off. This actually happens quite frequently. When there are property damage issues, California landlord tenant laws allow the tenant to recover attorney's fees in addition to other damages. This means that a relatively minor issue can escalate into something much larger.

I hate to be the bearer of bad news, but that's just what I'm seeing.  Best of luck.  

*This does not create an attorney-client relationship.  It is for informational purposes only and is not meant as legal advice.   

@Alex Olson- I use NREIG for some and a broker named Brian Caputo at Rosenthal Brothers for others.  If you have any other suggestions, feel free to shoot them my way.  

So I was just going over how my insurance premiums have changed in different cities.  

Property 1: single-family, masonry construction on south side of Chicago. 2019 insurance premium: $847, 2023 insurance premium: $959.

Property 2: single-family, wood frame construction in Missouri. 2019 insurance: $861, 2023 insurance: $1414. 

Coverages are similar on each property.

The numbers speak for themselves.  You have to be selective in where you invest.  The Missouri insurance premiums went up more because it is classified as a high wind area and the property is wood frame.  

@Marco Silva- You can get job data at bls.gov.  Population growth data is at census.gov.  Vestmap.com aggregates some of this data.  If you try to google the information, there are a ton of weird websites of questionable credibility.  Property managers may be good sources of info for what neighborhoods are generally good and those which are dangerous.

@Carmen Lapham- There are episodes in the "The Real Estate Investing Podcast" with Daniel Apke and Ron Apke that address this.  It's all about land deals.

@MIchael McCUe Are you looking for the attorneys in the US or Canada?  If in the US, which state are you working in?  I may have referrals.

@Marco Silva data: population growth, job growth, housing supply, landlord friendly laws, purchase price, anticipated rehab cost, property tax rates, insurance cost, is insurance cost rising quickly, expected rent, rate of rent growth, can someone with the median income afford the rent, diversification of the economy, quality of local schools, crime rates, is the property next door a dump, how many other people are bidding on the property, is there a Starbucks nearby, is there a grocery store nearby, are there multiple property managers nearby in case one fails.

There's so many ways to find deals, to name a few: MLS, wholesalers, foreclosure auction, tax sale auction, doing your own marketing through a bunch of different channels like direct mail.

@Account Closed- Having an operating agreement helps strengthen the limited liability of the LLC. It's a "corporate record" that will often explain that the LLC offers limited liability to the member(s) and that it was created for that purpose. An operating agreement offers additional benefits if there are multiple members of the LLC.

Taxes are not really my area, so maybe other qualified individuals can take a stab at those questions.

Does transferring ownership (selling the LLC with the property in it) by LLC violate the Due on Sale clause on the mortgage? This assumes that title was already in the name of the LLC. I can't really assume I know the language of any due on sale clause out there. All due on sale clauses can be phrased differently. A due on sale clause for a DSCR loan is going to be different than a DOS clause for a conventional mortgage. It's going to depend on the particular language of the DOS clause. There may be other clauses in the loan documents that are violated in this scenario.

*This is for informational purposes only.  It is not intended as legal advice.  It does not create an attorney-client relationship.  

@Timothy Galligan Section 8 works well in the Chicago market.  I recommend GC Realty & Development as a property manager if you want to pursue that market.