All Forum Posts by: Tim Matthews

Is there a third-party company that offers Damage Protection coverage for midterm rentals? Specifically for 2-6 month stays. Searching on the internet mainly results in regular landlord insurance. Since a mid-term stay could technically last for 60 days, is that a Damage Protection coverage for reservations this long similar to AirCover? I accept Direct Bookings by the way, and some are sourced from sites like Furnished Finder. 

@Jeff Lundeen how did this multiple offer attempt go?

Quote from @Allan Smith:

Member managed since there's only one member.

Is there a specific reason why member managed is preferred over manager managed for a single member LLC given the structure mentioned in the original post? Not that I disagree, I'm just trying to get the thought process here.

For a single member LLC that has real estate and that is owned by a Nevada Holding Company LLC, should the real estate LLC be member or manager managed? What are the advantages and drawbacks of each managing type with special consideration regarding working with lenders for financing, with asset protection, and with privacy?

Quote from @Patricia Steiner:

Geez...are you aware of the cons of using this trust? While it does provide a lot of layers to afford anonymity, it does come at a cost which includes the beneficiary cannot file for eviction if rent is not paid, the Trustee must be involved in all real estate transactions from rental, sale, permits and more - and the Trustee in most jurisdictions is either an attorney or CPA. Also the Trust does not provide asset protection like an LLC. And, financing will be quite challenging and definitely require personal guarantees. There are other ways to achieve anonymity as well as other ways of insuring against any direct liability. I would recommend something else as what you're proposing removes your involvement but not the risk while increasing your cost for basic real estate transactions which will require representation by an attorney/CPA as Trustee.

Fun, huh?

That is great information! I was under the impression that the beneficiary actually controls how the property is used, including choosing to rent it out or to live in the property personally. Do you mind elaborating on what type of "involvement" is required by the trustee if the beneficiary wants to rent out the property in the land trust? I had no idea that the beneficiary still had to rely on the trustee in order to agree to rent the property out. That helps me better understand what "powers" the beneficiary has and what type of public-facing responsibilities the trustee has.

Question about a land trust trustee: what are your thoughts about using a title and trust company as the land trust trustee for anonymity purposes? What are the pros and cons of using this setup, especially when it comes to wanting to refinance or get a HELOC on the property in the land trust?

Hello...okay that's good to know. I understand the concern with allowing my tenant to sublease to someone else. My situation is a little different and I can't really go into much detail here. So allow me to ask the question this way because this is more-so what the ultimate goal is.

Let's say that I'm doing a rental arbitrage strategy. If I am a tenant renting from a landlord who is permitting me to sublease to someone else, what type of lease agreement would I have between me and my tenant (who in this scenario would be the sub-tenant)? Would it be a "standard" lease agreement or does the agreement have to say it's a sub-lease?

Hello, all.

If I have a tenant in Chicago who wants to sublease (not sublet) to someone else, should that sub-leasing setup be made with a standard lease agreement, such as the Chicago Association of Realtors lease agreement, perhaps with additional wording indicating that it is a sublease? Or is there another Chicago-specific agreement specific for subleasing?

Hello, Does anyone have any recommendations for a property manager for the Freeport, IL and Rockford, IL areas? If so, please share their contact details with me. I greatly, greatly appreciate it!

Quote from @Michael A Moore Jr:

First, I would like to thank you for the reply and suggestions. It's a tax lien and I am aware I don't own the property just yet. I spoke with a lawyer today and let me know I will have to wait 2 years before I can foreclose on the property. 

All 3 are actual homes in my home city Camden, NJ where a lot of redevelopment is going on and 1 of the properties is in our downtown area next to hospitals, a transportation center, and entertainment. For 5k I think it's a home run once I own it.

All properties are vacant and need complete rehab. They have been abandoned for many years. The interest rate is 12%

 Congratulations on your successful bids! I am starting to invest in tax liens and deeds, too, so it's good to hear success stories.