All Forum Posts by: Bon Khator

We are looking to buy mixed use property with 2 residential units and a store front

2 units are rented

1 store front on the main floor is being renovated - final renovation will be dependent on the tenant

Challenge is that the lower unit is not rented abs most of the lenders are looking for a lease

We are not able to find financing and would love your advice

Let me know what other information will be helpful

Thanks

Does any one have experience in buying occupied foreclosed property ( SF) at an auction What is the process to evict or retain ( lease) the occupant Which one is more preferred ? Thanks in advance

Thanks all Ashley - correct, no history of evictions - they have been living with the parents until now - credit is bad due to debt consolidation but I have yet to see the complete credit report I am requesting more information from both the parties ; also hoping a better suitor but fingers crossed..

Hi - I have a prospective tenant whose credit is not good but his retired parents are willing to co sign ; their credit is good, own their house and have income which should cover the rent pretty easily Does it make sense to have the parents co sign the lease primarily in the sons name or just have the lease in the parents name ? If latter, do they need to have a sub lease between them ? Appreciate any feedback..

My favorites which are not covered already 1. Outliers by Malcolm Gladwell 2. Start with Why 3. Good to great 4. Turn the ship around 5. The tipping point 6. 7 habits of highly effective people

Two cents 1. You are assuming 30 year / forever hold period which isn’t true for many people for many reasons 2 you are also assuming that if the heater broke, you have additional funds to fix them - if the property is not cash flowing, any unexpected maintenance/ longer vacancy will force you to put in more money which is not sustainable- positive cash flow helps u survive these downturns for a longer period and makes a huge difference in your ability to hold it forever

Ppl who think enforcing the contract makes them professional and good landlord are penny wise pound foolish.. contract is for worst case condition and almost everyone would agree that this tenant is almost as good as they get.. risk loosing him - few months of missed rent and what are the chances you will get a better tenant than this - very small.. Ppl who think this doesn't make business sense - they don't know what a brand is ..accounting has a concept of something called "goodwill" i.e. Not every thing on your book has to be $.. there are few intangibles and that's where any act of goodwill goes.. be strict and pretend you mean business but then let it go.. you will create goodwill and will be far more valuable than 70$ .. this tenant will likely stay longer or even when he moves out can put in a good word ..

hi - thanks and it was very informative.. I have just purchased my first rental property and I have a hard time transferring the title to llc without permission from the lender.. Is there any way around it? Thanks 

Colleen - Thanks for your response. I will check and post the updates here...

I am in process of buying my first investment property and need some advice. I couldn't find any lender who will give a conventional loan to a LLC so I got the mortgage in my name and the idea was to transfer it to LLC after closing. But my lawyer is suggesting that it can;t be done without lender's consent that the title has been transferred to a different entity and per my mortgage broker, while this is usual practice, lender wont give a written consent. I am sure I am not the first one to buy an investment property in LLC so what is the best way to do it.

Also, before suggestions are made to just get an umbrella insurance, I am also using LLC to create a partnership so need LLC not just for liability coverage.

Also, i could find one lender who was willing to give a loan to LLC but it was a commercial loan with a high interest rate..

More information about the property - 2 unit investment property in North Jersey with a contract price of 275k. 1 unit is already rented out and i is recently renovated but empty.

I am newbie so apologies if this was answered already - I did search but couldnt find anything and let me know if you need more information. Appreciate your advise/feedback. Thanks.