All Forum Posts by: Ben Taub

@Ben Taub they dropped the investment property lending back around March of 2022. Hopefully it will come back as rates and values stabilize. With banks preparing loan loss reserves for a downturn the first business to get parred back is the riskiest e.g. investors sucking cash out of their investment properties with (possibly) inflated valuation estimates.

makes a lot of sence Matt, also USBANK did the same looks like , as they wrote me a maasages ''We don’t currently offer HELOCs on investment properties, but we do offer cash-out refinance if you need to access the equity. Below are the options we have for accessing equity…''

so i will try to start a new post asking for banks that currentlly still do HELOCs

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i see on the website of penFed ''Note: Only primary residences are eligible for a HELOC''

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Quote from @Wesley Sherow:

Good morning Ben!

I am quite surprised by some of the prices in your post, since i'm familiar with the upstate market. A couple things that surprise me:
- $10,000 cash for keys is absurd. At most i've seen $500-1,000. Don't exceed that. Cash for keys should be assessed against your expenses. If it would take you $500 in attorney fees and 2 months to evict someone, then theoretically you break even at about $4,500 - so MAYBE that's justified on the cash for keys route, but remember at the end of an eviciton you get a judement for the full amount, meaning it's worth it to a tenant to get $500 in cash and have their debt forgiven, or get out of their lease. It's not black and white.
- $450 per hour is not a normal rate. I pay $550-600 for an eviction as a flat rate. It's not a complicated legal process and usually involves one in person meeting for the attorney with the court. And often good evicitons attorneys line up their evicitons back to back so they're doing 2-5 cases in the course of one hour.

Questions:
Is it worth paying them? $10,000? No.

Rent is always still due. It's likely the fixes you need to make you'd need to make regardless. If that's what holding up your payment, then go for it.

Once ERAP makes a payment, the tenant still has to make rent payments AFTER they are approved and paid out from ERAP, so yes start the evictions process over from the immediate next missed payment.

Unless Newburg is for some reason largely different from Albany, Troy, Cohoes which is my wheel house, it seems you're ill advised on this subject.

wow! what an educated answer.

first i want to give an update, that the ERAP was already received by the seller, right after closing, they are late with more than 3 months after the ERAP anyway, so doesn’t matter

the calculation was that i can get 2100-2200 a month on each apt so its 4400 a month in rents for 3 months, plus 3700 in escrow for the attorney to begin with, but now i will definitely take your recommendation.

in the meantime a friend of mine offered me to try renegotiate it down to 2000 cash for keys ( CFK) , so will give that a shout as well

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Upstate New York, New York

Quote from @Peter Mckernan:

@Ben Taub I would go the $10K route, and get them out that way. There are a lot of ways to do the process and get it done which will take time. The seamless route would be to do the $10K route then go the attorney/court route if that ultimate has a snag, which it sounds like it will not have one.

Thanks so much for your input , i see you are from CA so you might feel the air of NY when it comes to evictions ....... that is why said what i feel

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Upstate New York, New York

Quote from @Bruce Woodruff:

Violations are different than repairs, you'll need to take care of them. A for getting them out, I would check and see what other options are available other than paying them. Even losing a few months might be preferable. Do the math...

But now you're stuck with the place you gotta start making money so do what ya gotta do.

Did you know all of this going in? It will take a lot of good cash flow months to offset what you're headed for....

thanks for your input , i did all the calclations in the underwriting , i countedt actully 20K for eveiction 20K for turn over ,and one year till turn over is completed .

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Upstate New York, New York

I bought a 2-unit property, and i am trying to get rid of the tenants that have not been paying since the bagging of covid, the old landlord was in court and lost for the ERAP assistance, now he finally got his ERAP, right after i bough it, they ask cash for keys $10,000 for each of the 2 units. (welcome to Newburgh NY) .....

i can easily rent out the units for 2100-2300 each

the property has multiple violations.

now my question is is it worth paying them? or going the other route, will the court require to first fix the violations before i start to count the 3 months that it takes eviction here from what i have heard?

the attorney of the old landlord was positive that i can just take over the case from the old landlord, (although nothing can be guaranteed that i will not need to start from scratch in Newburgh....) he charges $450 per hour, is a normal rate? if not do you have a better suggestion?

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Upstate New York, New York

What is the problem if i am bidding as an Owner Occupants, and at closing or after rehab i decide this area is not for me, is there any crime?

and what if i buy it with hard money

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Newark, New Jersey

What do I do if I can't get a Form 1098 Mortgage Interest Statement, tried to ask it from my private lander multiple times, but they must check with their bookkeeper Etc. and so on and so furth, it's now more than a year from when i asked for it, and i need to file for taxes ASAP, what can i do?

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Green Bay, Wisconsin

it's a website to buy and sell notes not properties. as well their courses

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Quote from @Brian Sparr:

Hi @David Morgan -

A real estate agent should have access to see the mortgage history on each property (amount, loan type and date) ... from that, you can make an educated guess as to the current balance. Look up the historical average for the date of the loan (or, more accurately, a couple weeks prior to that date) and then run the amortization and see where the balance would be today if they paid on time and never added extra.

As an agent, I also have access to purchase the current loan info through one of the title companies I work with ... I'm not positive, but I don't believe they allow it for a single property - it's been awhile since I looked into it, but I think it would have to be part of a larger group of loans that I was pulling info for.

I'd start with the educated guess and see where it gets you...

@David Morgan i asked a broker and he said he don't know where he can have access to see the mortgage history
you mentioned ,can you explain in more details where an agent can obtain the mortgage history on each property?

Thnaks

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All Forum Posts by: Ben Taub

Ben Taub has started 6 posts and replied 23 times.

Post: HELOC on investment property

Post: HELOC on investment property

Post: problam to evict inherited tennants

Post: problam to evict inherited tennants

Post: problam to evict inherited tennants

Post: problam to evict inherited tennants

Post: Buying a HUD property for Owner Occupants only, but not doing so

Post: 1098 Mortgage Interest Statement for Hard Money Loans?

Post: Considering Using The DistressedPro Web-sight, Thoughts?

Post: Finding Mortgage Balance