All Forum Posts by: Candace Ellison

@Darren Sager:

"Holding over" I like that. I hope I can charge this in my state TN. If so, I will be amending my lease to add it. Ya learn something new everday. 

I would recommend using an agent. The agent gets paid from the sellers. You will not owe the agent anything. Be ready to pay the buyers premium of 4.5% hubzu charges the buyer. I am not a fan of hubzu

Congrats! The kitchen was done over very well. 60k just starting out IMO not bad at all. Looking forward to hearing about your next flip. 

Well in my opinion all it takes is just one. I used my profit left from the first one to save for the next. Yeah it took like forever to get to #2 but that's how I did it. I used an FHA on the first since it was owner/ occupant. The second one I was prepared to put down the 20% (from the money I saved from #1) for conventional loan but since it was a foreclosure and the bank was offering an incentive of only 11% down, I took that route. Eventually, I was able to save for the 3rd one (from profits from #1 and #2) which was all cash. Then utilized LOC to grow faster. Hope that helped.

Awesome! Definitely going pro so I can have access to this.

Your tenants sound exactly like mine. Been there a year and always late.  I know for sure the late fees I can charge in my area and I strongly enforce them. My tenant has paid $65 added on to the rent every month for over a year. That's $780 buck just given away for basically being reckless and like you said living beyond your means. I totally understand where you are coming from.

 I stay on top of sending all the necessary notices and I keep files of any written correspondence. I even print and file text messages. If it were to ever come down to it in court I want to be thoroughly prepared. Study your tenant-landlord act and know what you can and can't do. Make sure your lease addresses late rent/fees and eviction. Be firm and enforce the terms of your lease. When you bend the rule once for tenants they view it as an all the time thing.

You are right! Some tenants know how to play the game well. It just comes with the territory honestly.

@Sonya Serna

That is exactly how I have to look at it.

I have been working with a GC to build a spec home for me and was able to secure a construction loan with my bank. An appraisal was done and title work completed only to find out the house that was suppose to appraise for 140-145k only appraised at 122k. The builder has completed this same house in a less desirable area (the hood) and that appraisal was 139k. According to my comps we were on point with everything. The bank is all set to close and I have to back out since the margins are super tight. I would only net me 8k at 122k sales price. No way I could do that deal.  I am out of $525 for appraisal. First costly mistake :(

How can I avoid this from happening again? I want to be sure I have plans that will be sure to have the value I need for the area.

Also, my husband is in the process of getting a limited residential license. He has a cousin who has been a GC in Georgia for years who plans to show him the ropes. I would like to use a GC for the first two before we jump in ourselves. 

From my experience it doesn not change anything. You can buy up to a quad on an FHA. Anything over that would be considered commercial financing. Im not sure if it's just my lender. So, don't take my word on it.

Keep pushing. I have been at this 7 years. Like anything else, it has it's up's and down's but it is well worth it. You are exactly right! Tenant selection is everything in this business. Read up on the local tenant and landlord act in your state. Make sure you have a lease that covers your rear end. For i.e Responsibility for repairs and damages, handling late fees and evictions, right of entry etc). The old saying goes don't put all your eggs in one basket. The market works in cycles. You will need to be prepared for the rough seasons. Best wishes with your investing.