All Forum Posts by: Christian Bors

@Jason Pabon I started my investing career using a FHA loan on a 3 unit building. As others have mentioned, its a great way to start and I would highly recommend it. FHA only has a 3.5% down payment and you can ask for 6% in closing costs. When I made my purchase, 2 of the 3 units covered the cost of the mortgage including escrow. It was a great way to save more money for the next investment, learn the management side of investing, and use minimal capital.

Similar to @Tyler Turpin experience, my girlfriend at the time was not a huge fan of living with tenants.  Even though our property is in a fantastic area, she would have preferred a single family home.  If it is relevant to your situation, you should consider your spouses feelings.  Overall, my then girlfriend and now fiance saw the benefit of house hacking. It couldn't have been that bad since she said yes!

Hope this helps.

Cheers,

CB

Demo

Kitchen Cabinets (sanding can be very dusty; you don't want all that dust right after you painted the house)

Paint

plumbing

tile/flooring

vanities/fixtures

@Jonathan Safa  It all depends on the market.  However, here are some things to consider;

Mr. Landlord (Jeffery Taylor) recommends offering "packages" to tenants.  I think he calls them deluxe or premium.  The deluxe will include a refrigerator for an additional $50 per a month.  The premium would include the fridge plus washer dryer etc for additional $85.  This is an idea to increase monthly cash flow.  If the tenant declines and says they will bring their own, there are no hard feelings.  Consider that the standard package.

Many investors recommend not supplying any of those accommodations.  The main reason because of maintenance.  If you don't provide those items, you won't receive calls saying they are broken or not functioning correctly.  

For my single family homes, I try to provide very little. However with the apts, appliances are more expected. Many investors will buy used appliances at a substantial discount.  However, repairs are more likely needed.  I prefer less calls, so if I don't need to provide it I won't.  When I do provide appliances, I try to take advantage of Holiday sales and use a 10% coupon.  Having NEW appliances are great selling features but not necessary.  IMO I don't think it increases the tenant pool or the quality of the tenant.  Just headaches.

@Melissa Chado @Denise Evans

I did a rough title search (aka I did it myself today) and so far I have only found the foreclosure and 2016 taxes that are unpaid.  The bank is owed 248k, however there are additional bank payments and fees totaling 262k.  I have not spoken with the bank to confirm the total owed.  I was thinking there might be an opportunity to assume the mortgage, pay the back payments then sell the property if the equity was there.  

@Denise Evans In this particular case, the seller said they are planning on filing chapter 7 then chapter 11.  He use to be a high income earner, however medical problems basically shut down the company for most of the year.  Its my understanding he is filing bankruptcy because his business expenses are too high (trucks, bobcats etc....) and he has too much credit card debt.  I am meeting him again today to get more information on what is owed.  

@Denise Evans That was great stuff.  I have good idea of the next steps that are necessary.  First, figuring out what the property is actually worth and second figuring out how much is actually owed. 

Why would someone decide to short sell a property before filing for bankruptcy?  I am not too familiar with credit reports, but if you filed for bankruptcy does having a foreclosure really make a difference?  I understand a short sale will be much better then a foreclosure, but is there an advantage if they plan to file chapter 7 soon?

@Bill Gulley why do investors market to pre foreclosures? Do they bring in an experience realtor then purchase off the mls or are they hoping to buy the note from the bank at a steep discount then foreclose or modify the note to become performing? 

@Denise Evans thank you for the response. If I am personally interested in buying the home, what will be the bak requirements. Will they make the seller put the property on the mls prior to entertaining private buyers?

@Andy Krzanowsky  When they file for probate, usually an attorney is listed.  Check the recorder of deeds.

Hello,

A lead came in today from a gentlemen who wants to sell his house immediately. I went out to the property this afternoon, and I would classify him as extremely motivated (aka he offered me the keys). The problem is, I am not sure what I should do with this lead. He is in the process of getting foreclosed. He owns a lawn care service that use to do 1.5 million gross annually, however he became sick and couldn't work for 8 months. In doing so, he hasn't made a mortgage payment since March. He is in discussions with a bankruptcy attorney, however he would prefer to avoid filing. He owes 262k on the mortgage and agreed to sell the property for as little as the bank would accept. Its difficult to say what the property is worth since it has 4.5 acres (2 separate parcels), 2000 sqft home, plus a 1200 sqft garage for his commercial equipment. He said a realtor gave him a number of 330k 8 months ago when he thought about selling. I am still in the process of figuring out the ARV. Anyways, I need advice on how to work this lead. I would like to wholetail or flip the property, but not sure what the next steps would be. I need to get the purchase price to about 200k. Also, I am a licensed agent so I am not sure how that would play with the bank. I am hoping someone can give some insight.