All Forum Posts by: Anthony Dooley

The property manager lists them on their website. I also get referrals from friends and tenants.

What if they run out of money? What if they don't complete the renovation? What if they die in a parachuting accident? There is nothing wrong with your deal unless something goes wrong. 

Finding a new tenant is very easy these days. Let them go and bring in someone else.

It really doesn't matter, does it?

@Dennis Nikolaev:  If they think you are broke, they don't expect to collect any money, even if they win the case. They will be more likely to settle out of court. 

If they think you are wealthy,  they expect to get paid if they win.

If you choose to sell one of them, the lender will tell you how much they need from the proceeds. You could apply it all to the entire loan, but the lender will not require all of it.

LlC is good to hide your name from ownership, but not as good as a land trust. A land trust can own the property and the beneficiary can be an LLC. You would be the trustee.

Keep in mind that a lawsuit would need to prove that you were negligent in some way and it caused harm to someone before you would have to pay any money. That's why insurance is worth paying for. 

Investment properties don't get the 2.3% rates that are available for a personal residence. Commercial rates should be closer to 5%. I would not pay any points to this guy. Keep shopping other lenders. Points are just pre-paid interest. Money is cheap now, so if they won't make it work, some other lender will.

It's not a portfolio loan, it's a commercial loan. Buy the whole thing with one loan and one closing. You will need 25% down and the rents will need to produce 125% of the debt service. Most likely it will be a 5/1 ARM with a 20 year amortization. The lender will prefer that a professional property management company handle the management rather than you. Keep it simple.

Follow the laws of your state and withhold money to cover damages and financial losses. I would invite the boyfriend to file through the court system for his deposit if he feels cheated.