All Forum Posts by: Todd M.

Good to know, thanks! I have a fourplex and a duplex held in an LLC. Didn't know about 5+

Any recommendations on bankers to connect with?

I have 4 traditional mortgages and looking buy another multi-family or commercial investment property.  I believe I need to find a bank that provides portfolio loans, right?  Or smaller banks which hold the loan.

Any recommendations for banks in Minnesota... in or near Minneapolis?

I have over 5 years REI experience. It sounds good to work with a local banker and consider the investment itself rather than a deep dive of my debt to income. I understand I can hope for up to 70% LTV.

Thanks in advance,

Todd

Hey everyone,

I'm an somewhat experienced investor looking for advice to reach the next level.  I have a house and cabin with conventional mortgages.  On investment side, I own a duplex and fourplex also with conventional mortgages.  I hired a property mgmt company for both investments.

I have about 75k liquid to spend on acquiring more real estate.  (I've worked my tail off for this money)  I have a full-time job and 3 kids under 11 years old and don't have a ton of time to find deals.

Here's what I'm thinking to level up:

In order to get best deal possible, buy a property for cash. Rehab if needed, get in some renters, turn over to prop mgmt company. Refi this property with a local lender at 70% LTV and get cash back out. If the deal was sweet as I hope, then I'll have good cashflow from this property and cash back.

Repeat this process.

To find deals, I've been trying to find bird dogs and wholesalers, watching craigslist.  Thinking about running an ad in local paper about wanting to buy.  I'm feeling "meh" on working with a real estate agent.  

I bought my investment properties over 5 years ago and feel out of the game.  

Thoughts?  Suggestions?

Thanks,

Todd

The actual employees of PM are in MN. The property is in MN. I'm in MN. Owner of PM company is the one person who lives out-of-state. But, this is beside the point.

I did my homework when hiring. Reference checks, contract reviews, etc.

Anyhow, do I have any recourse here? Any suggestions? Links to other forum posts?

Thanks,

Todd

Hi,

My Property Management company recently performed over $1500 in repairs on a fourplex which I did NOT authorize. Our contract clearly states I have to approve anything over $300.

When I called them on it, they said I gave verbal authorization to the repair person. But, this is impossible since the first time I met this person is weeks after the repairs. I've explained this to them already.

They've already taken the $1500 out of monthly rents already.

They hired a new manager two months ago and I knew this guy was a doofus from the get go.

When I ask for a breakdown of the $1500, he says they are putting it together, but it's a bunch of chicken scratched notes and lost receipts.

I told them this isn't right.

I have an email trail and have engaged the owner of the PM company. The owner keeps telling me he'll get back to me, but it's been a week. I'm in MN and he's based in UT.

So, I'm new to PM relations. But, this just doesn't seem right.

Any suggestions? Any recourse?

Bring in a lawyer? If so, what kind of lawyer am I looking for? Lawyers are expensive.

If I fire them now, I'll need to pay 3 months of management fees for 4 units.

-Todd

Looking for your opinion and any references to websites, books,etc.--

Wondering if I should buy another property (1-4 unit) or wait/save up and try to buy a smaller, 12-18 unit apartment complex.

Background-
I own a duplex and a four plex in the same area of town. It's ok neighborhood... not great, but not ghetto either. Been a landlord for about 5 years.

I want to keep growing my real estate business. I've read about sticking with duplex/single families vs. apartment buildings.... but I'm on the fence about which way to go.

Thoughts? Opinions? Questions I should consider?

Thanks in advance,
Todd

Nah guys, my bad, miscommunicated....

Each panel is 60amps.

I guess the problem lies in the way the electric makes it to the panels inside the building:

The lines are buried in a 2in pipe in foundation cement up until the panels. Electricians are concerned about running lines from street to panels (in this pipe) that can handle each panel being upgraded to 100amp. They are thinking it will require 3in pipe. That's the rub and why potentially the price is so high; they can't just swap the panels out.

I've got one electrician trying to see if he can pass inspection copper lines in the existing 2in pipe. I guess copper handles more amps (than aluminum maybe).

Hello,

New owner of a 4plex with 60amp electric service. There are 5 electric panels with fuses: 1 for each unit and 1 for common area electric.

In trying to get property insurance, two very large insurance companies have problems with the current electrical and can't touch it.

They wanted upgraded service to 100amp, so I had to go with an expensive, state based plan (plan of last resort). In addition, I had to take out a separate commercial liability policy as well.

I'm starting to check around and it's looking like approximately $8,000 investment to upgrade to 100amp in order to "save" $1500/ year in insurance. It's not like I have that kind of money laying around.

Anyhow, I'm not experienced enough to know what I'm being told and the direction I'm heading.

Thoughts? Opinions?

Thanks everyone. I'm getting it.

Any suggestions on moving money from one corp to another?

If I move from corp to personal (distribution or paycheck) then to LLC, then I'm going to be taxed on it.

Hello,
Seeking opinions/insight into "loaning" from one of my corporations to another from a tax perspective:

Quick Background:
I have a C-corp for software development business. I have an LLC for my real estate business which consists of one duplex and one four-plex.

Once or twice a year, I loan money from the C-corp to LLC and I'm wondering if this is a good idea from tax avoidance perspective? In other words, I'm trying to lower my taxable income in the C-corp while injecting the LLC with cash for improvement projects.

Let me be clear on something though- I pay taxes, but I am always trying to legally lower my tax payments. I'm sure there are plenty of other people on this board who understand.

Thoughts? Alternative ideas to consider?

Thanks in advance,
Todd