All Forum Posts by: Adam Bonoff

was curious about the actual numbers on a deal like this.  How much was the capital raise and what was put down, interest rate, etc.  can you share the deal the investors get.

Thank you 

Adam 

I would let him slide, its good will, good tenant, keeps the property up, down on his luck, better off letting it go.  I would send him a note and tell him given the fact you know he's out of work you would like to let it slide but please make sure the rent is on time in the future.

I just looked at one of the policies and Anthony Lee is correct, I have a Liberty Mutual agent I referred to the tenants and he named my company as having additional interest, I thought I was an additional insured.

You should be able to a cash out refi to 75 LTV if you need to. Some smaller banks may be willing to give you a credit line to a maybe even higher LTV. Not sure why you need to put money in get the tenants out. If they are behind on rent or have damaged the property and will not repair it you should file notice to quit.

It makes sense to require it making yourself or your company a named insured.  For usually around 150 per year you are getting yourself potentially another 3-4000 of security, if they were to damage the property.  If you put it in the lease and demand a copy of the DEC page before they move in you will get it done.  Nothing is a problem until its a problem.

You can expect to pay what the town has for now.  When they get around to reassessing it which could happen next year you will get a new bill.

I do not, but it could be a gauge.  Depending on the type of area you are in you can go to craigslist or zillow and find out what current rents for a 2 bedroom are in your area.  If it is a very low income area and you are depending on the security of government backing the rent than that may be your best approach.

There is a certain element of risk in not really knowing the payment history of the current tenants.  It would be good if you can get from the seller the tenants history through bank statement for the last 3 months.   If they can't provide this at least ask if any of the tenants are in the process of eviction at this time and try to look it up on your states website.  The risk does seem reasonable, its just a pain if you have to start getting people out right away.

Well be up front w your insurer get them to agree in writing that this is the risk and they acknowledge it.

If they will not accept it I would get the tenants out, I know its painful but you don't need the expense of  a lawsuit where you are not covered.

Tell the seller your bank has asked for the proof and if he can't provide it you will not be able close, tell him you will put off the inspection to give him a few days to get it together.