All Forum Posts by: Robert Steele

When I first started out many years ago an old Realtor passed on this piece of wisdom that I have come to know as truth; "The first offer you receive is usually your best".

I thought it was common knowledge that commercial properties pay lower taxes than homeowners? I've never seen a commercial property assessed at anywhere close to what it is worth.

@Todd Powell I'm sorry to hear that. 

Rather than pay the obscene health insurance premiums Obamacare foisted on us I prefer to save that money. I also max out my medical insurance on my auto policy which is cheap. So if I'm injured in a car accident then I have that covered. If I need major elective surgery before I make it to 65 I feel confident that I can sell or mortgage an asset, if need be, and go get the operation done in a first rate hospital in Canada, Israel or Singapore. Anywhere that they don't charge an arm and a leg like they do in this country with it's out of control health care costs.

Boy the insurance industry has done a real good job brainwashing a lot of people into thinking they must have health insurance. $2K/month is obscene. I bet that is with a $10K deductible or something. So you're out $34K/year before the insurance company pays a penny.

If you can avoid a major accident or injury during the next 10 years that's $340K you've saved up. Alternatively if you need heart by-pass surgery the month after you retire that is what wealth is for. Sell one of your paid off houses.

I've managed to get by on this planet for almost 50 years without needing major medical. Insurance is a scam.

It depends on who you ask. If you ask a lawyer they will tell you to create an LLC for every property you own. If you ask an insurance agent they will tell you to buy insurance out the wazoo.

I think the asset protection mantra pushed on landlords is solely designed to make money for lawyers, insurance agents and asset protection gurus. In 20 years as a landlord I have yet to need asset protection. It doesn't mean I don't have it. Just saying I haven't needed it.

Here's the problems I have with LLC madness and why I prefer liability insurance.

1. I've heard from several lawyers that they haven't met an LLC that they couldn't pierce.

2. LLCs only offer upstream protection. Meaning protection from tenants. If you personally get sued for something outside your businesses they can still come after your LLC ownership interests and your assets.

3. When your LLC does get sued who is going to represent you? You will have to pay for a lawyer. As opposed to insurance in which it is the insurance company that pays its lawyers to settle or defend you. If you have ever gotten involved in a lawsuit before you will realize that the costs can mount quickly. Then when you lose, you are not only out the single property in that LLC but tens of thousands in legal fees.

4. Bookkeeping and incorporation costs are a pain.

@Alexander Felice @Greg H. @Maugno M. @Reuben Gathright

Collusion at foreclosure auctions is illegal so the last laugh is on you.

PROSECUTING COLLUSION AND FRAUD AT REAL ESTATE FORECLOSURE AUCTIONS

I thought colluding at an auction was illegal? I see people colluding at Trustee sales all the time. They bid, then when two of them have run out of money they team up to continue bidding. Is that collusion? I also see them say things like "if you let me get this one, I'll let you get the next one". I'm pretty sure that is definitely collusion.

They do this brazenly in front of the Trustees. But the Trustees are not law enforcement and so they don't care. I'd expect that they have a fiduciary responsibility to get the best price and letting bidders collude is not conducive to that responsibility though.

Well now some of the Trustee sale clic are coming over to the Tax Sales and doing the same thing. Right in front of the Constable Deputies! They don't seem to care either. WTF?

Am I wrong about this. Is it totally legit?

A friend of mine has a rental in a Texas HOA. They've just adopted a bunch of restrictive declarations aimed squarely at landlords.

I don't have a lot of the details but apparently there is a rental fee charged by the HOA and higher fines for rentals if they violate the CC&Rs.

The one that really gets me riled up is they are requiring landlords to pay for "professional landscaping". This is only required by rentals. Not owner occupiers. Are you kidding me?

@Brian Moore You can say that again. Costs have been going up like crazy for the past two years and I have not been able to raise my rents.

I've gotta say, that's a very clever idea of bundling with auto insurance in a state you don't drive in order to get lower premiums.

Is it just me or is everyone else seeing their premiums for replacement cost hazard insurance skyrocket 13%-17% this year as well as last?