All Forum Posts by: Tom Henderson

hello team!
I was scheduled to close on my fourth investment property, a duplex in Minneapolis 10/15. We have pushed back closing due to a tenants POD unit still being in the driveway. 

As part of the PA, I requested that both tenants (month-to-month leases) leave. The property is in disarray. Today, its a C property in an A location. I plan to renovate and bring it back to life.

What you do in my situation-- would you buy the property, and deal with a surly ex-tenant? Do I have rights as a new owner to remove the POD unit from my location? Or, should I keep waiting for the seller to get rid of this POD unit? 

Basically, what are my legal rights here? How would you guys go about this? 

Thanks,

Tom 

I should clarify-- If I can receive advice on how to properly structure the operating agreement with a business partner who has complementary skill-sets, that would be very helpful. 

Hello Team!

I am maturing my property management approach, and will be partnering with my former college roommate, who has been helping me with recent renovations. I'm wondering if anyone out there has information on how to properly set up a dual-member LLC, as far as roles/responsibilities are concerned? I have 3 duplexes and 1 Quad in Minneapolis; it's time to formalize a bit and streamline processes.

My Background-- sales and business mgmt. So, probably AP and Leasing.

My Friends' background- construction. So, I'm thinking incident management and physical facilities management.

There are many more aspects included in REI, which I'm not accounting for right now. Any ideas you can provide would help our operating agreement. It would be great to do the legal work upfront-- making for a better working relationship from day one.

@Brian Johnson nice.. I almost went to Creighton...What a great city to invest in.

I think this is a great question! As a full-time sales guy for an IT firm, the real estate stuff' (unless critical--ie-- tenant/winter/HVAC/Minnesota :) usually gets tabled to evening and weekend work.

Got to have a side hustle to eventually get where you want to be.

I own 3 duplexes and a Quad. All are similar #'s as @Marcus Johnson. Here is the expense section of one of my South Mpls duplexes: hope this helps.

The answer for me is pretty simple... Omaha, Nebraska, or Fargo, North Dakota. 

Omaha, Nebraska

- very solid, long-term businesses-- transportation, Agriculture, financial services 

- Creighton University, University of Nebraska Omaha-- great schools with graduate programs

- Relatively low barrier to entry

Fargo, ND

- programs to bring in business

- North Dakota Oil Boom-- Bakken Oil Fields

- Strong economy -- diverse SMB businesses 

- Relatively low $ barrier to entry

- low crime rate

How about you? Where would you own? Small town in Washington? Metropolis in Colorado? ;-) 

Cheers

Tom 

This is a great topic. Much appreciated everyone. 

I think it might be more realistic to put 20-25% down on a very good buy that needs work. Put a little love into the property thru a construction loan from a reputable local bank. Then, refinance and pull your cash back out. This only works if the buy is good, and you're able to control your expenses on the construction. My first property was a FHA 203K loan, which I would never do again. My 4th will be done leveraging this technique.

So, in essence, it's the same as no $ down.

isn't the no-money-down approach what got us in trouble in the first place ;-)

@Ben McDermott @Ben Leybovich 

Appreciate your note @Eric Doud. Great feedback.