All Forum Posts by: Stetson Oates

Never hold a rental in your name. Have the LLC established when you decide to offer on a property as the offer, insurance, title, and loan will need to be in the LLC's name. Also, you need a bank account. Start getting quotes on property insurance, general liability insurance, and an umbrella policy. The first line of defense is the insurance policy, the umbrella is next, the LLC is after that. Also look and see if your state has charging order protection, this is another line of defense. Finance with a bank that's comfortable with a long-term fixed rate mortgage in the LLCs name.

Quote from @Rob Hakes:

If somebody is giving you a quote for more than it may be worth, they probably just don't want to do the job.  Sometimes if it seems the customer is going to be more of a pain that we want to deal with, we can add significant amounts to the quote.  Then it is up them to decide.

Just saying

Looking at some of the comments and reviewing your situation, I would move on from this management firm.  If the bid is outrageous, pickup your toys and go play elsewhere. As Rob stated above, they may want you to find someone else. I wouldn't put so much work into convincing them their bid is too high, put that energy into finding a better management firm.  

Quote from @Matthew Paul:

Lets see , $25,000 to first time home buyers , plus forgiving student dept , nice way to buy votes with tax payers money . Price controls on food , its all BS . 

It would be another government program that will be abused . 

She is saying these things to get elected.  None of it will happen. It will get votes though, and that’s the goal. 

Hello, I'm glad you have had success doing this!!! I would caution that any outstanding litigation or taxes would follow the LLC if something went unreported or paid. If someone had an incident on the LLCs property in the past and decides to sue, you may have an issue. Same for any unpaid taxes in the LLCs past. Do your due diligence when purchasing an LLC.

Your LLC's GL policy is the first line of defense, the LLC's Umbrella is the second, the LLC is the third. As Ty said above holding each property in its own LLC limits liability significantly, however it can be difficult to manage and maintain the corporate vail by keeping each LLC's finances separate.

Quote from @Bob S.:

Quote from @Gregory Schwartz:

Where are all my boring investors at? Does anyone else prefer good old buy-and-hold long-term rentals?

20-25% down, duplex, break even on cashflow in a promising area. That's what gets me excited. 

I've done major rehabs, owner financing, private money, partners, out-of-state investing, and Airbnb but still prefer the good ole long-term buy and hold. Even though they make less on paper. 

Am I the only one? 

 Well, the smart thing to do is both. Have rentals and also flip. The biggest mistake of my life was not keeping 50 or so more of the 500ish I flipped, MASSIVE mistake. Wealth is built not flipped. 

BTW I would never buy a property that does not cash flow less then 15% . All mine avg 15- 25% NET per year, based on cash purchase. If you are 100% counting on appreciation, well, that does not sit well with me, NOT saying its wrong just not for me. I like a check the following month after I close. 

All the best 

Wow these numbers are nuts. I buy all cash most of the time and 25% is outstanding. I've never been close to that.

This is a great discussion. I think strategies change as time goes on and markets change. Right now I'm guessing the best strategy is to eliminate debt thats 5% interest or more. My personal strategy is to use debt responsibly and scale. 50% LTV or less is what I like to do.

I use Turbo Tenant and it’s free functions will do most of what you need. It does have a subscription plan that can give you additional functions. If I get a few more units I may upgrade to the pay version.  It will track expenses, collect rent, track payments, screen tenants etc…. With the free version.

I think you may have received some bad info. I invest in Oklahoma City and haven’t heard this before.  

Ouch, I hate that this happened.  Id be upset too.  I think the best move would be, get this property in top shape while you are fixing other issues.  Make sure everything is in great condition, then find a tenant worthy to rent it. I think in time it will make you whole again. Then I would have a conversation with the seller, then move on.  It's a lesson learned, but you turned lemons into lemonade.  I'd be really upset too, people are disappointing sometimes.