All Forum Posts by: Charles Carillo

@Lorenzo L.

The investors buying these properties could pay cash and make that 5.3% return. They could also be losing money in the short term while value-adding the property (before they can increase rents and NOI).

@James Humphrey

I would suggest speaking to local banks, and credit unions. Whenever I am having an issue with financing, I normally reach out to local institutions. They are much more reasonable and are more intertwined in a community than some lender states away. The credit committee is usually made up of local people who are familiar with the market they are in. Lastly, they like building relationships. Once you find a lender that finances properties similar to yours, start building a relationship.

@Sharad Bagri

I would open a bank account at a local bank or credit union that will lend on the properties you are buying. You can do your banking there and begin a relationship with a lender that finances your real estate investments. You can also have a high-yield savings account elsewhere, but a local bank relationship will really help you as you begin to grow.

@Miki Sheinaizen

We have partners who are foreign investors. DM me, and I will send you contacts for attorneys, lenders, and accountants they have previously used. It is important that you hire professionals who have experience working with foreign investors.

@Sonia Jones

I would suggest speaking to local banks, and credit unions. Whenever I am having an issue with financing, I normally reach out to local institutions. They are much more reasonable and are more intertwined in a community than some lender states away. The credit committee is usually made up of local people who are familiar with the market they are in. Lastly, they like building relationships. Once you find a lender that finances properties similar to yours, start building a relationship.

@Matthew Morrow

I have seen similar situations when the previous owner/seller loads the property with unqualified occupants. During the due diligence process, did the buyer walk the property, unit by unit? Usually, you can speak to some of the tenants during a walk-through. Also, did they run the current tenants through state databases looking for previous evictions? These are a couple of things we do during our lease audit process.

This is a prime example of why investors need reserve funds. If they have the funds to evict and re-rent to good tenants, they have solved the problem. Without reserves, they might be unable to evict tenants or prepare the units once they are vacant.

@Cory Morris

Many residential loans are non-assumable. If this is the case, you could utilize a strategy called "Subject To." In short, a buyer takes ownership of the property while the seller still remains on the existing mortgage. The buyer maintains the property and pays the mortgage. Only when the buyer pays off the mortgage or refinances it will the seller be released from the mortgage.

@Justin Smith

No, you do not have to provide a notice if you are not entering units. However, if they are going to be disturbed, I would provide notice. For example, temporarily stopping utilities to their unit during a repair or if there will be loud noise or a major renovation on the premises. 

When I have these questions, I try to think about what I would expect from my landlord as a tenant.

@Angel Peng

I have dealt with this in the past by first checking the lease, and if it is now month to month, I will give them notice that I am terminating the lease in, say, 60 days. I know some investors would give less time, but I have found it easier to work with tenants when you are fair. If they are in a challenging financial position, I might offer to assist with moving costs. I might also tell them that I will give them X dollars if they move within 30 days. It helps create an incentive to get them out sooner rather than later without damaging your property. 

@Cody M.

I would add a Phase I Environmental Site Assessment as a contingency to any offers on properties more susceptible to environmental issues (dry cleaners, gas stations, auto repair garages, etc.)