All Forum Posts by: Stephen C Gates

What's the best strategy for a buyer to protect themselves from a due-on-sale clause in a subject-to deal? We (an OH LLC) are trying to purchase a three-building portfolio from another LLC using seller financing. The numbers are good so we just want to make it happen, our attorney is not a fan of the creative financing structure and flat-out stated she would never recommend anyone buy any property subject-to. Thoughts?

Yes, it seems it's quite a sticky situation. What are some of the issues related to buying the LLC outright? I was thinking that may be a better option to protect ourselves, but have never done anything like that before.

My partner and I are looking for a real estate attorney licensed in OH who knows how to navigate subject-to deals and creative financing. We are trying to purchase a multifamily rental portfolio financed by the seller without triggering a due on sale clause by seller's lender. 

@Michael Baum will do, thanks!

I'm a licensed agent & Multifamily investor based outside of Youngstown. A family member is considering investing in a rental property in the area that can be rented out short-term for extended stays or vacation terms, that they can also use to stay in when they visit from out of state. I'm solid with residential RE and Multifamily stuff but haven't really dabbled in STR.

Any suggestions for particular areas in NE OH with a strong market for STR?

Any suggestions on what to look for that makes an area particularly good for such use? I feel that with them being out of state it could be tricky to manage, they don’t have to rake in cash flow but I don’t want them to lose their shirt either.

Thank you for sharing tips!

UPDATE: I spoke to the tenant about it and explained how having guests use the storage room is unsafe and a violation of her lease. She confessed he had been staying there (it was her baby's father who she is no longer in a relationship with) and he wouldn't stay any longer. She has since moved out, we renovated the apartment and raised the rent and have a new tenant living there with no issues. 

Keller Williams Chervenic Realty runs a great property management arm. Ask for Ben Moody, he’s experienced and knowledgeable. 

@David Avery this isn’t a “male company” situation, she’s allowing someone not in the lease to occupy a space that’s not fit for habitation. Essentially letting someone live in the garage for all intents and purposes.

Recently purchased a fully-rented four unit apartment building. Each unit has a storage room in the basement for tenant use. Last week I discovered one storage room being used as a bedroom by a friend of the tenant. I spoke to the tenant who said it was just that one night, she didn’t want him to drive drunk, but I’m not buying it. He has shoes neatly lined up in there and personal property, etc. I emailed her a copy of her lease highlighting guest stays and no subletting or license policy and told her use of the storage room as guest quarters or living space is grounds for termination. This was last week. I was at the unit doing maintenance today and I saw the guy there, he looked like he was going down to the basement until he saw me and went back into her apartment.

How do I go about discouraging this behavior and getting this guy to move on without having to evict the tenant? She’s actually paying the highest rent in the building and has a newborn baby, so I’m loathe to go through the whole thing so soon. Can I just call the cops and say he’s trespassing? Should I install a security camera for proof that he’s staying there? I’ll evict if I have to but I’d rather work around it.

@Jill F. Why don’t you refinance after the units are fixed up? Seems you may be missing out on lower rates and higher cash flow. Am I missing something?