All Forum Posts by: Andy Kurtz

Thanks for your input BP! The story fortunately has a happy ending, though not without some drama. The nephew of the deceased squatted the unit for a week, which obviously posed a host of other issues. If he could have proved residency, I would have a long drawn out battle on my hands. We offered him $500 to vacate the unit by October 1, which he did. Unit is now vacant (and in need of some rehab), and the crisis is averted.

Just closed on a 6-unit property in MA, which will be a cash cow once it’s turned around. One of the tenants, who’d been there living alone, passed away 6 weeks ago. The tenant has a daughter, whom my property manager has been in touch with. The daughter is obviously distraught, but insists she will have all the belongings removed by the end of the month. According to the property manager, as of yesterday the unit, which when the tenant lived there was in immaculate condition, is in shambles. Trash and belongings strewn throughout, and food left open in the kitchen, which is causing a rodent problem. Not good times. From a legal standpoint, there has never been a written ad signed rental agreement in place. I have an estoppel letter confirming the tenant’s monthly rent, and that there a) were no security deposits collected and b) last month’s rent was NOT collected either. What steps do I need to take to cover myself and get rid of these belongings? Thanks to all.

Depending on how you mortgaged your home, you may be able to have your cake and eat it too. A few years back, we refi'd from a 30 to a 15, and with some luck (i.e.: market appreciation), we found ourselves at a 60LTV. So we pulled out a HELOC to 85LTV with a small local bank, and are using that HELOC to close on a 6-unit next month. Took us a few years to get here, but it's a plan we were comfortable with.

/genuflects Jay - thank you a million times over.

My apologies, I may not have been clear in my description. In this case, I'd be the lender in 2nd position.

At a recent BP MeetUp, I met an investor looking for private funds for a fix and flip. Here are the particulars: ARV: $600k conservatively Acquisition Cost: $300k (probate deal) Rehab Cost: $150k. Will take approx 6 months. The house won't be ready until the dead of winter (always a concern in Boston), but the property is located in a white hot market. The rehabber also sent me their portfolio of prior deals; they have done 20 deals since 2015, though this project is the first at this price range. They have a HML for the $300k acquisition cost, and they are looking for funds to finance the rehab. I explained that I'm not comfortable lending the full amount, but if they had 10% skin in the game I'd consider it. @Jay Hinrichs mentioned in his recent podcast to avoid going into second position at all costs. Being my first deal as a private lender, I have obvious concerns about being in 2nd position, but the CLTV is so low, I'm strongly considering this opportunity. What questions should I be asking myself to further evaluate this? Should being in a junior position simply be a deal breaker for me? Thanks for any and all input

Hi @John R. Hernandez - thank you for reaching out.  I'm in a bit of a transition period, as I recently, and quite unexpectedly, lost my job.  The job was really fun too, which makes it sting that much more.  While I haven't ruled out investing, I need the dust to settle, get tighter control of my personal overhead, and evaluate my options before heavily exploring investment opportunities. 

I second Minh Le 's comments - we should have an explanation as to how this fraud made it onto the podcast

I'd love to be a part of this - please keep us updated.

@Account Closed - you mentioned you pay for the shared area water.  Does that imply you're billing your tenants for their individual water usage?  If so, how are you doing it (RUBS/submetering)? My concern is a tenant not paying their water bill then I get stuck with a lien on the property.