All Forum Posts by: Teri B.

Also, not seeing anything that prevents resale in any time range.

If indeed it is assignable and the title company is ok with it (they seem rather cautious in general - probably won't use them again - I picked them, closing all my cost on both sides), will it potentially make the bank upset if I do it (don't want to mar changes for any future transactions)?

Thank you.

Hello,

I couldn't decide how to take title of a REO we just got under contract. In case we wanted to BRRR, I put the contract in name of my spouse and I to make delayed financing easier. One day later, I regret that and wish I would have put in the name off the LLC because it is probably going to be a flip. And, I want this to be a clean trail for tax/liability purposes.

The contract has been sent along to the bank to sign, and I don't want to screw anything up. I downloaded the Purchase agreement and found all instances of the word 'assign' or 'assignable' and don't see anything that would prevent me from assigning to LLC at closing.

Or, maybe I missed the wording.  Can you tell me what to look for, please?

Thanks for your time.

@Ben Meisel

Thanks, I'll check that out.  My concern, of course, is how to prevent this going forward if the lines are indeed bad.  So, this looks like a plan.

---Hoping to part ways with the 3rd tenant soon.  The landlord has changed his policies in that regard, so that's another issue to contend with.  

@Jill F.

I had my kid send me pics of the lease.  She sent what she felt pertained, so I can't be 100% sure.  But, it looks like only cleaning (i.e. cost to clean tubs after moving out) and replacement of various items (ie. blinds) is covered.  I see no mention of a situation like this.  But, I'll be seeing her soon and I'll review the lease.  He didn't mention it being covered in the lease, and he seems like a very sharp man, so I feel like it would have come up.

(edited for clarity)

@Johann Jells

I agree.  We were a house of three girls/women (plus a short haired fella) for decades.  Without a hair guard in the shower, too.  Yep, we had minor clogs but one of those snag-it things always did the trick.  They kids tried, and the plumber said they never would have got it out on their own.  (sidenote:  this was the first time the landlord had used this company, and I do feel bad for the fella that piped up).

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Also, that tile job he mentioned over the summer was in bathroom B.  

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Thanks for the input.  It's a good teachable moment for the kid, because there are people like this out there, unfortunately.  

Hello,

I've read through some 'hair clog/landlord' threads.

This is the other side of the coin and I'm curious what you'd do as landlord.

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My kid shares a house with 3 other roommates at school.

Kid 1:  Mine - moved in mid August 2017, did not do a walk-through, shares bathroom A.

Kid 2:  Moved in mid August 2017.  Shares bathroom A.

Kid 3:  Used bathroom A from May to mid-August, along with 1 other subletter.  Moved rooms and bathrooms in mid-August.  Now uses bathroom B

Kid 4:  Moved in mid-August 2017.  Uses bathroom B.

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Drain clogged in 'bathroom A' a few weeks ago.  Plumber told Kid 4 that the pipes are shot & there was 30 yrs worth of hair in there.  No way it could just be the current tenants.

Landlord says the $150 clean-out fee belongs to the current tenants and plumber is wrong.  He was in the house over the summer to install tile and ran the water.  All seemed ok to him.  

He said no slow draining was mentioned in August walk-through.  My kid didn't do a walkthrough.  

He said it hadn't needed a clean out for 8 yrs . . .  until Dec 2016.  Dec 2016 cleanout tenants lived there through the following May (2017), and were followed by subletters (May, June, July) before the current renters arrived in mid-August.

Then at the end of Dec 2017, it needed another cleanout.

The kids used the drain screens.  They only removed them once the water was backing up and they tried to snake (and snag) it (right before the plummer came).  Screens went right back on afterwards.  

Kid 3 isn't happy in the house, and is trying to sublet out.  Personal reasons.  She emailed the landlord and said the Bathroom A kids weren't using the screens (not her bathroom, and false.  Plus, she also used the bathroom for 3 months herself prior).  Landlord is using that as contributing evidence, and has now said the $150 must be paid.

No direct mention of such in lease.  He said they don't have to pay it, but he'll get it out of their security deposits when the extended year lease ends.

They've also had 3 or 4 bat removals since September.  Animal control guy had to come multiple times for one bat they couldn't catch, as well.  $.  Hole not found yet, so likely more.  No other issues - good tenants.

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Shady or just how this works?

I am surrounded by friends and family that actually tried to talk me out of investing (or were super hesitant).  But, I did my first deal in mid-2017 and I hope to close one this Friday.  

Even with this second deal, I sometimes wake up in the middle of the night questioning my sanity, and the only thing that helps me is to read the forums on Bigger Pockets.  It helps to know you are not alone, crazy, etc.  I am sure I aged prematurely on the first deal, but I sure learned a lot. 

I also over-analyze (everything, always).  But, I have accepted that perfection and progress are hard to sync when starting.  I learned so much from the first deal (the mistakes stung and cost me some serious money but that's how learning goes sometimes).  I still made a profit, and I refused to give up and I'm on to #2.  Just do the best you can, be careful about who you trust, be humble, and get started.

If this were easy, everyone would do it.  I was surprised how everyone wanted to work 'with me' after my first deal went ok, but no one wants to try on their own.  

Hello,

I try not to mooch info, but I can't get time with a CPA fast enough to ask.  I tried.

No legal/professional advice assumed, if you reply.  

Sold a house in June. Meant to be a buy and hold, but sold due to a move (only rehabbed, never rented). Didn't want to be brand new landlords more than an hour away. The CPA I spoke with said it can qualify as regular investment income, based on intent, to minimize the tax burden (no intent to flip originally). All transactions in name of LLC. Some profit. We sold our primary too, and have since bought a new primary home in the new city.

I am hoping to close on an investment home this Friday (so, in 2017). BRRR strategy, so we would take title in our personal names (with a big umbrella policy) to facilitate the financing in 6 months. With the LLC that we used earlier in the year being a single member LLC, I think it's all 'pass through' investment income. So, I think it's ok to take title in my spouse and I's name, and still have it be advantageous tax-wise.

So, in LLC (I'd have to amend purchase agreement today) or is personal name ok - from a tax perspective?

Thank you for any input!

I found a company that is, so far, willing to work fast.  Most of the others said no or I couldn't get anyone on the line.  I realize it's the holiday season.  If you ever find yourself in the same situation, reach out and I'll share the contact.  Thanks.

Sorry, I wasn't clear.  I have the money.  Just need a title company or real estate lawyer that can move fast enough. 

Hello,

(Apologies if wrong section - couldn't decide where to post)

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Would anyone have an idea about how I could close on a property that I just went under contract for, in LaPorte County, IN - by the end of the year?  

Any recommendations or ideas would be SO greatly appreciated.  It's a great way to establish a long-term relationship with a repeat customer.  I'm not (even close) to rolling in dough, but I realize it will take some hustle and that is worth something (tip or surcharge for the rush).

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Cash sale. Buying from owners who I believe purchased cash, in 2015. Taxes are current. FSBO. No commissions. They indicate owning clean title. Owners live in Chicago-area. I am wiling to drive to make it happen.

Thank you.

Hello,

I know what the 'right thing' to do is, but I'm faltering.  Please put me back on the right track.

Just wrapping up my first flip.  I am all in a dither because I priced too low (lesson #1).  My broker has been elusive in the important ways.  I'm a new realtor.  I got the comps wrong on my own.  The first appraiser was giddy to tell me I was undervalued, and mentioned a house 3 miles away that wasn't as nice but sold for $10,000 more.  

 So, I'd guess I was probably $6-10k too low with neighborhood differences.  Had one another offer. They offered 7,000 more but wanted 4,000 in assistance.  My broker said they may be banking on it not appraising at offer price.  So, I went pending in a week (lesson #2).  

Contract expires Monday.  They can't close until at least Tuesday. I could technically get out of this.

If I kept if for a rental, it would be about a 2.25% deal.  No capex for a  long time.  We had people stopping bye basically begging to rent it. 

With that said, I will probably clear about $22,000 before taxes on this very first flip which is better than many end up on the fist go. We're relocating in the next year, so I don't really want to distance-landlord over an hour away. FHA with two appraisals . . . so even if I wanted to put back on MLS, I might be capped if they came down close to list price (lesson #3). No idea what appraisals were.

It's been a great learning experience.  But, there are so many moving parts in these deals and I underestimated the need to control them all closely.  I think I need to just walk with the money and get busy doing more deals.  But, I hate that I left money on the table.  Do you agree?

As always, appreciate the input.  I don't find lots of people who understand like BPers do.