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All Forum Posts by: Trent Brown

Trent Brown has started 0 posts and replied 8 times.

Post: Trusts, LLCs, and AirBnBs

Trent BrownPosted
  • Posts 9
  • Votes 3
depends on so many things, but a start to think through

Cash Flow Structure:

  1. Operating Company to Holding Company: This is a common setup where the operating company (property) generates rent and pays it to the holding company. The holding company can then distribute income to the trust beneficiaries or reinvest it in other assets. This allows for consolidated financial reporting of all properties under the holding company.
  2. Operating Company to Trust: Alternatively, the operating company could directly pay rent to the trust. This might be preferred if you want to keep the financials of the property separate from other assets held by the holding company. However, it might also incur additional accounting and tax complexities.

Non-Real Assets:

  1. Holding Company: If the non-real assets are essential to the operation of the property, holding them in the same company as the property (either operating or holding) makes sense for financial reporting purposes.
  2. Separate Entity: If these non-real assets are more independent or potentially have different risk profiles, consider holding them in a separate entity owned by the holding company. This allows for better isolation of their financial performance and potential liabilities.

Financial Representation:

  • To accurately represent the property's performance, your chart of accounts should track income and expenses separately for the operating company. This gives you clear visibility into the property's profitability, regardless of cash flow structure.
  • You can then consolidate the operating company's financials with the holding company or trust as needed for broader financial reporting purposes.

No problem! Good luck!

Checkout Playa del Carmen/Tulum - so many great LTRs for cashflow opportunities!

You're right to be a little concerned about the mobile homes on your inherited property. While it's true that having mobile homes on the property can make it difficult to get a traditional mortgage for buyers, there are still ways to sell it, and understanding the reasons behind the challenge can help you make the best decision.

Here's why banks might be hesitant to finance a property with mobile homes:

  • Mobile homes are considered personal property, not real estate. This means they're not permanently attached to the land like a site-built home, making the overall value of the property less predictable for lenders.
  • Mobile homes can depreciate in value over time, unlike site-built homes, which can appreciate. This can make lenders nervous about the long-term value of the property as collateral for a loan.
  • Moving mobile homes can be expensive and complicated, and there's no guarantee that a buyer will be willing or able to do so. This adds another layer of uncertainty for lenders.

However, there are still options for selling your property, even with the mobile homes:

  • Sell the property as-is: This will likely limit your buyer pool to those who are willing to pay cash or who have alternative financing options. You can highlight the potential of the property and the value of the land in your listing to attract interested buyers.
  • Remove the mobile homes before selling: This can be costly, but it will make the property more appealing to a wider range of buyers and potentially increase your asking price. Be sure to factor in the removal costs when deciding whether this option is right for you.
  • Offer seller financing: If you're willing to take on some risk, you could offer to finance the purchase yourself. This could be a good option for buyers who are struggling to get a traditional mortgage but are still interested in the property.

Obviously, the best decision for you will depend on your individual circumstances and goals. 

The answer to this depends on so many factors, but I would consider growing more organically before taking on a significant personal or SBA loan. I'm sure you could find a lender to qualify for some amount/version of an SBA loan, but before doing that, I think you really need to justify /validate that taking a loan to grow your business is the right decision.

Enjoy the property:

  • Live in the property and use the amenities according to the lease agreement.
  • Decorate the property within reasonable limits, as long as it doesn't damage the walls or cause permanent changes.
  • Have guests over, as long as it doesn't violate noise ordinances or disturb other tenants.
  • Keep pets, if allowed by the lease agreement.

Maintain the property:

  • Keep the property clean and sanitary.
  • Make minor repairs, like replacing light bulbs or fixing leaky faucets.
  • Report any major repairs to the landlord promptly.

Other rights:

  • Receive a copy of the lease agreement before signing.
  • Ask for clarification on any terms of the lease they don't understand.
  • Pay rent on time, according to the lease agreement.
  • Withhold rent if the landlord fails to make necessary repairs.
  • Terminate the lease early, if allowed by the lease agreement or if the landlord breaches the agreement.

Things Tenants Can't Do:

Damage the property:

  • Make any major alterations or renovations to the property without the landlord's permission.
  • Paint the walls without the landlord's permission.
  • Install permanent fixtures or appliances without the landlord's permission.
  • Engage in any activities that could damage the property, such as throwing loud parties or using illegal substances.

Violate the lease agreement:

  • Use the property for commercial purposes without the landlord's permission.
  • Sublet the property without the landlord's permission.
  • Have more occupants than allowed by the lease agreement.
  • Keep pets that are not allowed by the lease agreement.
  • Cause disturbances that bother other tenants.

Other restrictions:

  • Smoke inside the property, if prohibited by the lease agreement.
  • Park in unauthorized areas.
  • Use the property for illegal activities.

Post: Tax Lien Certificates Liability

Trent BrownPosted
  • Posts 9
  • Votes 3

It's definitely a viable business with successful companies like Realty Tax Solutions and National Lien Acquisition Fund doing this, but like any business, I'd start small to start. Once you really get going, you'd probably want to explore a Series LLC.

But i'd follow Paul Graham's, one of the most successful investors in the world, advice here in doing things that don't scale. https://paulgraham.com/ds.html

Post: Website Templates for Leasing Properties

Trent BrownPosted
  • Posts 9
  • Votes 3

Hi J, I'd recommend checking out Webflow if you're open to another platform. Amazing templates and top tier customization tools. 

A really good free option is Hubspot's landing page builder too. 

Would recommend steering clear of WP though.

I'm a website developer/designer if you have any other questions - more than happy to help.