All Forum Posts by: Jonathan Taylor Smith

@Edwin De leon - Are you even able to use a VA loan to purchase a property with more than 4 units? I thought VA loans were limited to 1 to 4 unit properties.

Welcome back to BP @Kionnon Harris! Working with investor clients can be rewarding, as they have the potential of repeat business. An investor may buy and sell multiple properties per year - whereas a non-investor client may only buy or sell a property or 2 per decade. But the problem with investor clients can be that they are expecting you to bring them "unicorn" properties that are essentially non-existent in the current market. Or they may want you to submit multiple "low-ball" offers that have little to no chance of being accepted. And all while not wanting to commit to working with you exclusively in your market. So, my advice is to be professional, value your time and expertise, and make sure that your clients do as well.

P.S. You'll get that expertise and learn all of what it takes to be an excellent agent for investors if you become an investor yourself.

@Dieudonne T. - The first one is the hardest... Maybe express the "variety of reasons" and excuses that have prevented you from getting started. Writing them out and getting specific feedback towards them may help you to overcome. For myself, I let a full 2 decades pass between first learning of what real estate can do for my financial situation, and actually buying the first one - and over that time I just talked about wanting to become a landlord "someday". But I was not the person then who I am now, and I had to become a different person to make it happen.

@Andreas W. - No, I do not think your reading of the law and sending the 10-day notice on the 2nd is wrong, as rent IS due on the 1st and therefore late on the 2nd. However, I personally think that handling sends a confusing message to send/post a 10-day pay or quit notice on the 2nd, when the tenant knows (and the law is) they have a payment grace period until the 5th, and you cannot charge a late fee until the grace period is over. I want my 10-day notice to instill a sense of urgency and dread, and I want them to know that they are now in violation of the lease and at risk of eviction, non-lease renewal, or a higher rent increase if still renewed. I feel that impact would be lost if the 10-day notice is just a regular occurrence that comes every month on the 2nd just so that you can get a 4-day jump start on the process.

@Derrick Quals - In 2019 I bought a lake house, which was proceeded by a few years of watching both Lake Front Bargain Hunt and Lake Front Bargain Hunt Rehab. Both of which are among the many FAKE property rehab shows; however, it was none the less inspiring. Now I'm watching Beach Front Bargain Hunt - so that's a coming purchase for me!

Hello @Jasmond McArthur - Many online resources like Zillow can give you wide-ranging idea of what the property might be worth if rehabbed. However, the best method would be to get with a local Realtor to have them pull comps of nearby similar properties that have sold within the last 6 to 12 months. Then if the comps suggest you'll have good equity post rehab, that might be the way to go.

No problem @Ismail Sogbaike - as you get into this, just make sure you always do what you say you're going to do. That will aid you in all sorts of ways, including eventually getting private lender funding for your deals. But to your original question, if you get an owner-occupant loan and actually plan to live in the home, and then some time into that, something happens to require a change of plans (legitimately) - then that is another matter that you can discuss with the lender at that point.

Are you asking if it is ok to commit mortgage fraud?

@Ram Maharjan, first - research TX landlord / tenant law so that you know how to properly handle notice requirements to proceed on to eviction. I'm in NC, and here we must provide a 10-day notice (demand to pay or vacate) as early as the 6th, which is the day we can post a 5% late fee, as the 1st through 5th is the payment grace period. I ALWAYS post a late fee and send the demand notice on the 6th, so that I can file for eviction by the 17th. Knowing this, it is exceedingly rare that my tenants have not all paid by the 5th, and for the few that are late each month, they always pay by the 16th. If they know you are professional and serious, you magically avoid most problems.

Second - what does your lease say on such matters as late rent? For example, my lease says that repeated late rent payments will likely result in lease non-renewal. But that if renewal is offered, it will be at an additional 5% rent increase beyond whatever would have been the increase amount anyway. I figure if they're okay paying a 5% late fee each month, then I should make that the new base rent + the normal annual renewal increase. I cover this in detail with the tenant going in, explaining that I do not want their late fee - I just want on-time rent payment.

Lastly, might your former co-work have any influence on their daughter here? If not, follow the TX process to get to an eviction ASAP.

Good Moring @Romel Mayorga - I've been to Salisbury many times visiting a family friend who lives there and attending some events; however, I'm not sure of the housing, schools and medical job opportunities there, as I've not researched the city lately. Salisbury is in the direction of Greensboro from Durham and is about a 1.5 hour drive if I recall correctly.

I'm a Realtor, and I cover both the Triangle and Triad markets. DM me with details of how I can be of assistance.