All Forum Posts by: Brandon Hicks

I'd go after the deal as a land contract to start and then refi later after you built in some equity. Start talking with small local banks to determine what kind of structures they'll lend on.

Get a judgement and PURSUE it! I've had to go after 2 tenants so far....the 1st paid in full over a few months and the 2nd one took getting to the point with courts where they were ready to issue a body attachment. He nows pays monthly and has paid $600 of the $1600 owed. It's the principle of it in my opinion. I'm not planning on retiring with six figures of uncollected judgments like a couple of other guys I know!

Be sure to have the records corrected. You may be paying too much in property taxes as a result of their error.

A smaller local bank should be able to do this as a commercial blanket loan. Im getting ready to refi 5 duplexes now on 5 different parcels spread across town in 3 different locations. I also have 4 other properties on one note with the same bank. Its not an uncommon thing youll just have to shop direct portfolio lenders vs brokers.

@Dan Seavey

If youre thinking of offering full price or near full price ask them to carry it all. Here is some verbiage from my letter of intent. I don't invest in SS but rather small MF properties but the idea is the same.

" The down payment is to be made up entirely from credits for prorated property taxes, prorated rent for the month closing takes place and security deposits that you have collected from the current tenant(s). The land contract note amount will be the balance owed after the above credits have been subtracted.

The monthly payment is to be based on a 20 year loan amortization at 6.0% interest. I would want a 5-year balloon payment to allow time to build enough equity to ensure that I can obtain long term financing with a local bank. I will be responsible for paying for insurance and property taxes from the date of closing."

You can start with something like this and see what he comes back with. You don't have to offer full price. Ive successfully purchased my last 3 deals with the down payment working out as described here. If your CAP is low to begin with why put your money in the deal anyway. Do it no cash down and do 2-3 deals instead of this one.

@Dan Seavey

If he's stuck on the price then make him an offer for that price and ask for seller financing terms that you couldn't get at the bank. Lower down-payment and or rate for example.

Pretty sure I once received applications from the parents of these guys!! Well it may have been two girls that looked like them. Either way......YUCK!

http://youtu.be/OhjKNmgsQmM

@Matt Roth he has a youtube series of a single talk he gave around the time he wrote it that is worth a listen as well.

My advice is always the same for someone starting out....

Learn to do deals with as little of your own money as possible.

So Id be looking to refi these 3 deals with a local bank once you have 12 months or so operating data. Take the refi proceeds and rinse and repeat keeping as little of your own (your dad's) money tied up.

Im curious as to why you do not allow applications to be taken? I prefer them to be filled in completely and I feel a policy such as yours would create incomplete apps.....either because the applicant may not recall all of the contact numbers or other info asked for or that they may feel rushed in filling it out on the spot.

I prefer to email the apps out when they call me on a vacancy. The serious ones bring completed apps to the showing and I can begin reviewing the app and ask questions face to face.