All Forum Posts by: Asury Johnson

Hi, we are looking to refinance our rental from the current 12 month short term rehab loan to a 30 year amortized loan. We are also interested in an interest only loan that balloons in 5 years. Any helpful information will be much appreciated. The home is in Madison, TN.

This usually discourages them to not make it a habit.

@Nicholas 10% of outstanding balance is the max we can charge in late fees where we have our properties. We raise the rent $25 for the second time they pay late and every time after that. Also, the lease goes month to month.

@Wayne Brooks he didn't pay cash. They're financed under business name. The court says he owes her money, not the business. That's what we're confused about. She's coming after assets that aren't in his name and that were acquired after divorce was finalized. Anyone can put a lien on anything, didn't mean it's justified. Our attorney is in the process of squashing the liens since they're not in his personal name.

@Matt Burns he acquired his assets after the divorce. That's what's crazy

I have a partner who went through a nasty divorce right before his investing business took off. The judge requested that my partner pay all court fees and her attorney fees, totaling in over $20k. My partner's lawyer put in a motion to appeal it. (Not sure if this is the right terminology) while he's waiting for his court date, the ex's attorney puts a lien on his properties which are all under his S Corp and not personal name. I know this a little crazy and of topic, but now he's freaked out and doesn't want anything in his name or business. He thought the whole purpose of having an entity was to keep business separate from personal.

@Jake J Connelly Hey! We live in a military town and know 3 veteran investors that house hacked using a VA loan for their first deal. One sold the entire 4plex after living in it for a few years and another converted one unit a STR. Not a bad way to start and you can learn to be a landlord.

@Selena Walsh our biggest red flag are local people booking. Especially, if they don't mention why. We have cameras and I'm very vigilant if they're locals or visiting a local person. I have busted a few "parties" this way. I make them leave and keep their money. They don't read and even notice the cameras. This goes for seasoned or newbie guests. It's hard to judge and you just have to trust your instincts and watch them on the cameras.

@Sheena Lee when we were starting we received payment in any form we could get it (we didn't know better) we quickly learned that's not wise. Checks bounce, cash is a pain as it requires tenants to withdraw it after work and some atms won't let you withdraw a certain amount. We used to allow direct deposit using our account # and never had any fraudulent issues. Most of the older less tech savvy crowd prefer this method. However, if they don't have deposit receipt and there's issues with the deposit, you have no proof that they made payment. We had one lady try to get over on us and blame the bank for losing her payment not going through, yet she didn't have a receipt. We have since transitioned to using a third party, Buildium, to collect rent, deposits, fees, etc. Much more convenient.

@Keith Allen we have a SFHs that are in the lower side of rent. The tenants weren't horrible, but if they got behind, it was hard for them to catch up. They were harder to find after eviction process as they maybe moving from place to place if funds are tight. We tried to work with them as much as possible, but you can only do so much. Some were single moms that worked crazy hours to stay above water and kids were left home all day. Kids don't know how to take care of a house, so house was very neglected. Clogged drains and toilets, etc. We decided about 2 yrs ago to turn these properties into STRs since they're smaller and are very basic. Bet decision ever! We make more cash flow and less headaches.