All Forum Posts by: Steve Morris

MLO is like a broker - Unless you have some "friends and family" to do business with, 80% of the job is getting clients.

That means being on the phone which is a 100% job if you want to do it right.

Maybe call a MLO office and see if he'll take you on part-time?

Think I'd double-check since rules are unique for stuff like interest bearing.

However, in general, you're supposed to have the security deposits in a separate account (for each unit) and be able to provide an accounting to the tenant (and REA if they ask).

You CANNOT commingle money amongst accounts, that'll get you nailed by the REA.

Didn't think it's that onerous.

PLUS - Means asset and income growth in Austin

MINUS - Cali content % of population is exploding.  It's only a matter of time now.

Not real good:

1) They may just sink molys (you hope) in sheetrock and while TVs are getting lighter, mount needs to go into a stud

2) Had one deal where they hit a water pipe in the wall - Hilarity did not ensue

3) Who patches it when they take down the TV and move?

I'll give you credit, you're one of the very few WS that practices disclosure then .  My apologies.

If the seller knows how much you're getting and what the true buyer is paying, why do you need a double close? If net listings are legal in PA, why not just treat it as a single escrow and commission?

LLC is an entity to hold title that limits recourse on claims against the property to assets in the LLC. Any income gets passed thru to the members according to the operating agreement.

If you want a loan:

1) The property needs to qual for appraisal and debt coverage (does it earn enough to pay the mort)

2) Whoever is on the loan needs to sign personally with (in OR) a trust deed recorded against the property.

I don't think a LLC changes financing, but talk to a mortgage broker.

Also, hire an atty to draft the operating agreement since friends change once money gets passed out.  Also divorces happen.

Make sure you ALL read and understand - Like Reagan said: "Trust but verify"

OK, then PA must be one of the states that allows net listing agreements?

In OR, but probably not.  A judge would say the tenant has a MtM lease even if he's not paying and you can't evict.

You can sell, but since the lease predates the sale, the buyer gets stuck with your "friend".

This tax murders your ability to mask your fee to both buyer and seller via double close (in which case you technically did buy the property).

That's not true. Was a deed on the property ever recorded in your name?  An equitable interest is NOT an ownership interest.

So you're telling me that a seller knows what the true buyer is paying and what your "fee" is?  Simple Y/N

You're arranging the sale of real estate in expectation of a fee/skim (assuming you're not a charity) - You have a PA RE license?  Simple Y/N