All Forum Posts by: Robert Mayo

A followup....and something unexpected. I was able to get a loan on the basis of the following: I have most of my money in a brokerage account, and a smaller amount in a checking account. A monthly wire transfer moves money from the brokerage into my checking so I can use it for daily expenses.

According to two different lenders, the amount of this transfer counts as income as long as it has occurred for 3 years and can continue for 3 more years. It appears this counts as "regular reliable income" per Freddie Mac guidelines. This was surprising to me, as I'm just moving money between my own accounts, and no accountant in his right mind would call this income. I went on to refinance with one of these lenders and Freddie Mac now owns the loan.

What happens when the appliance breaks? If you won't fix it is the tenant allowed to throw it away to make room for his own appliance?

Dave T, thanks. Very practical suggestions.

Who are your buyers? Are you targeting people that want to flip them into owner-occupied units or people that want to fix them into income properties?

Some of the tenant screening companies claim to report evictions. I've used e-renter.com in the past. Going to your local court won't do much good if the person is new to the area.

Thanks -- good info!

Looks like I can chose 1 of 3 quality levels:
1) replace parts
2) reface cabinets
3) replace cabinets

How repairable are kitchen cabinets? I saw a property where all the drawers were stolen. At that point is it better to replace all the kitchen cabinets, or can you get new drawers made?

I doubt he's referring to a short sale, I think he's just suggesting they avoid realtors because of the commission. If your equity is 7% of the value and you pay 6% to a realtor you are almost wiped out; selling to an investor can avoid that.

It seems to me the cash flow real estate performs better in all but 2 situations: 1) large unexpected changes in rental income and expense, like a big lawsuit or act of nature, or 2) deflation, where both rents and property values decline over extended periods.

One more idea, related to both finding 10 properties to close at once and related to rehabs.

Am I allowed to work out a business arrangement with another RE investor, in which he constructs the asset I wish to exchange into?

For example, I might want 10 properties purchased at low cost and then rehabbed according to my specifications. I work out an agreement with investor X where he agrees to do this and then hold the properties for up to 2 years. The agreement would also state that upon 7 days notice he must sell them all to me.

Such a method would allow me to "stage" my exchange so everything is ready to go at the same time, but also give plenty of time to shop for properties.

Then again, this arrangement may not be allowed by the IRS. Investor X might be considered a "related party". Anybody know?