All Forum Posts by: Taylor Kendrick

I came across a section on appurtenances in my RE course and wanted to explore a hypothetical. First, here's an example of subsurface rights as an appurtenance (from the course):

Example
An oil company buys the rights to the oil beneath a piece of property. The oil company now owns the subsurface rights to that property (one of the property's appurtenances) and can transfer or keep them as they wish. Should that property be sold again in the future, the property owner would convey all rights to the buyer EXCEPT the oil rights that were no longer the landowner's to sell. The new buyer would have to honor the pre-existing oil rights of the oil company.

My question is: is it possible to transfer oil rights but not mineral rights? If I gave oil rights to one entity and mineral rights to another, what would happen if both entities discovered their rightful resource in the same place?

technically yes but I am not sure how realistic it is unless its a very large parcel. reason I say that is typically when you give up rights they will use them (for example oil well), which requires access etc. It is most likely challenging to have mineral rights and oil rights by two different entities on a property - but great question.

Thanks for weighing in, Chris! Yeah, this one just got the gears turning on a tangent because it almost makes it sound like if you buy one subsurface right, you get them all. But I figured that couldn't be the case at all times because, in theory, I'd think some properties would be large enough to facilitate multiple entities.

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Hi there,

I came across a section on appurtenances in my RE course and wanted to explore a hypothetical. First, here's an example of subsurface rights as an appurtenance (from the course):

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Hey all,

I'm going to be in Vegas tomorrow (11/17) through Wednesday (11/20) and wanted to see if anybody had time to grab a coffee (my treat) or hop on a call while I'm out there. I'll probably do some driving around and checking out neighborhoods when I have the time. I'm looking at buying options in the area and trying to learn more about the viability of different property types in LV. Would love to hear from some of y'all, even if it's just on the phone if that's most comfortable/convenient for you.

I'm mainly going to play golf, get some remote work done, and treat myself at a spa or something (had a long year, amigos). Could be down to share a round with someone as well if our schedules work out.

Shoot me a DM or colleague request if you wanna connect!

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Quote from @Ko Kashiwagi:

Hi Amanda,

Some questions I ask.

- Do they invest in that market as well?

- Do they have off-market deals in the pipeline?

- Are they working mostly with retail buyers or investors?

- Will they go out to the property, take videos and go out of their way to show you the properties?

- Who do they know? Contractors? PMs?

It's important to ask questions up front, but it also comes with the understanding that you will have to churn through people as you find more information. As you start to do deals and make offers, you will see who you like and work the most well with!

Hi Ko, thanks for sharing this. What would you say is a good answer for the third question ("Are they working mostly with retail buyers or investors?")?

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Quote from @Ryan Konen:

Older multifamily properties, like the one you’re considering from 1920, can be solid investments, but there are key areas to assess carefully. Older buildings often have charm and character, but they may also come with maintenance challenges. Common concerns in pre-1940s buildings include outdated plumbing, old electrical systems, and structural issues that could be costly to bring up to modern standards. The brick construction is a plus for durability, but check for any signs of foundation issues, especially if the property has settled over the years.

Be sure to budget for updates to key systems—plumbing and electrical upgrades can be pricey but crucial for tenant safety and modern functionality. Lead-based paint and asbestos are other potential issues with older properties, so get an inspection to assess any environmental risks. If the property has a solid inspection and a healthy maintenance budget can be set aside, these older properties can be very profitable. Many investors see no "hard line" on age as long as there’s strong cash flow and maintenance is manageable, but ensuring you’re prepared for any age-related quirks is essential.

Thanks for this, Ryan. What kind of businesses would you search for in order to conduct the various inspections/assessments I would want to do for a property of this type?

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Hi everyone,

I'm looking at a variety of multi-family homes right now and I found an interesting MFH. All brick, built in 1920. Much older than most of the other listings I'm into but the rough numbers indicate it would be pretty profitable (+$2,000/mo). Conservatively maybe I get more like $750 - $1,000 net profit per month.

I actually quite like the property overall. It reminds me of my grandpa's home which was built in 1924. It's been sturdy as hell but certain things (like plumbing) were a pain to modernize for him.

What does the squad say on this? How old is too old? What do I need to look out for with a property from this era? Do you draw any hard lines in the "Year Constructed" sand?

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Quote from @Evan Polaski:

@Gavin Wynn, why are you wanting to form an LLC?

Asset protection is an obvious reason for many, but if you are sued, in reality, the opposing attorney will do everything to get to you personally, anyways. i.e. did you sign leases personally? Do you have an outstanding mortgage in your personal name? Are you using a personal Zillow account to list your properties for rent, or a personal email/cell phone to take tenant inquiries? Not to say an attorney will be able to pierce the corporate veil, but they will certainly try, anyways.

I am an Ohio resident, and I did my own and my wife's directly though the secretary of state. I (we) have only been sued once on a property that was in my wife's LLC, and we settled before we found out if they other person was going to be able to pierce the veil of her LLC.

I don't mean to discourage you from forming an LLC, but there are real costs, beyond formation. Lending terms on properties owned in LLC tend to require more equity and higher interest. Some title companies will require an operating agreement, even if sole member, to buy or finance a property. Separate bank account, credit cards, signature blocks for every contract and document you are signing for LLC.

I have an LLC for my rentals, so I am 100% for them, as long as you understand what you are getting into. And in reality, while I have never had to test the strength of my LLC, if you are being sued, any half decent attorney will try to pierce your corporate veil anyways and try to get to you personally anyways. Again, very limited experience with this, but the one time I was sued, the attorney tried to connect social media posts on a personal account to bring personal exposure for a property that was held in an LLC. (We settled anyways because the settlement was cheaper than what my attorney bills would have been to defend against this absurd suit, so I didn't test the true strength of the LLC)

Interesting you went with an LLC for your very first property. If someone were to buy their first property without an LLC, how difficult would it be to roll that property into an LLC later?

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Cleveland, Ohio

Quote from @Nathan Gesner:

We take a "whole person" approach. We measure against 15 different factors. Some are automatic denials, some are measured on a scale of 0 - 3. We add up the scores and get a total score that reflects the level of risk the applicant presents. If more than one person applies together, then we combine their scores for a group average. The lower the score, the higher the risk and the more we charge for a deposit. We will rent to higher-risk tenants, but they'll pay through the nose to mitigate our risk.

That sounds really interesting. Have you discussed these 15 factors in any of your own content or perhaps on a podcast somewhere I could learn more?

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Thanks for chiming in, everyone. Lots to take in here!

@Ran Fridman What to you personally makes for a "higher-quality property"? What are you looking for and what are you looking OUT for?

@Pat Aboukhaled Your friend sounds like they really made out. My focus now is on consistent rental income since I don't really have the tools and knowledge to make wise appreciation plays. How did your friend wind up managing the properties? Did they hire out?

@Remington Lyman would love to hear more about this lender sometime.

@Jonathan Greene Scares you? Already in that Halloween spirit, eh? I actually advise on and develop reserve studies for a living. I have a solid idea what to expect there. The $50k-$100k number is for down payments like I mentioned. Reserves are already deducted from the figure I've arrived at.

@Nathan Gesner Heard that. Thanks for providing some great sample scenarios. Is that $175k line of credit held by a blanket company under which you manage your properties? I'm curious to hear more about how you went about securing that and at what point in your investment journey you first did so.

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Chicago, Illinois

All Forum Posts by: Taylor Kendrick

Taylor Kendrick has started 5 posts and replied 17 times.

Post: Could This Be a New Way to Invest in Real Estate Without Buying the Whole Property?

Post: A question about "appurtenances"

Post: A question about "appurtenances"

Post: LAS VEGAS - Looking to link up with some investor-friendly agents or rental owners

Post: First time out of state investor

Post: How old is too old? (or, what should I know about homes built in 1920?)

Post: How old is too old? (or, what should I know about homes built in 1920?)

Post: First time forming an LLC

Post: How Do You Ensure Quality Tenants?

Post: My starting point