All Forum Posts by: Chris Eaker

Hopefully your lease has some wording about disturbances and being in breach of the lease. I would give them the ultimatum that if they don't stop disturbing the neighbors they will get evicted. 

As for the door, they had the opportunity to claim it's an existing condition on their move in inspection and since they didn't then you must assume they did it. Fix it, take it out of their security deposit, and then charge them to replenish the deposit.

I know these kinds of tenants, because I've had them before. You have to play hardball with them or they will run all over you.

Pre-screen them before you show them the property. No use showing it to someone who will not qualify.

According to Tennessee law, anyone in Tennessee who makes mortgages has to be licensed unless that person is making a mortgage on a house they own or making a mortgage to a family member. The license is $1,129 and you have to have at least 1 year experience in the industry. I do not see any exemptions for people wanting to do, say, one or two hard money loans per year from their IRA. No exemptions for business mortgages. I checked with the attorney for the TN Department of Financial Institutions and she confirmed it. So I see no way to loan money as an investment in TN without a license. If you know a way, please let me know.

My question is does a person have to have a license to buy an already existing note in TN?

Maybe @Victor Jernigan has some information on this situation? I ask because I have IRA money that I'd love to lend, but I do not have the minimum 1-year experience nor do I want to pay the $1,129 for the license. What are my options?

@Christopher B.

I'd like to know the actual numbers on those properties, i.e. what are the rents and how much did you pay for the properties.  You must be buying pretty far below market value to get the numbers you're getting. I know you said you do renovations, so did you buy them distressed and then fix them up?

Assuming the numbers work out, I'd take the duplex now than wait for something later. Money in your pocket today is worth more than it will be later.

Welcome, Ethan. I cut my investing teeth in the Atlanta market and now I'm in Knoxville. Good luck!

Definitely go with used. 

You need to add that to your lease now. I call those kinds of things the "gotcha" clauses. I add things to my lease as they come up and say "gotcha!" My lease now says tenants are responsible for changing the furnace filter monthly. I put a brand new one in before they move in and usually provide them with one extra. I put the date on the one I put in and if I come back out for anything, I'll check the filter. If it still has that date on it, then they are charged $15/month that it wasn't changed (also spelled out in the lease). Your lease should also say that tenants are responsible for damages, so if their negligence caused the damage, you can charge them for it. If your lease doesn't say that, then "gotcha!" Add it for the next one.

I'm not a lawyer, but I think you have a case here. Get an attorney now and ask them. They withheld information. As is means they are still required to disclose anything they know about the property and then you buy it as it is knowing all that. not as it is with secrets they didn't tell you about.

Wow, are you talking about houses or cars? Those numbers are so low, I wasn't sure.

In all seriousness, you just say, it's not likely the bank would call it due, but if they do, then you'd have to refinance. But if the comps are half of what the loan balance is, then you would run into trouble getting it to appraise. Maybe they take your $8k, add $12k to it, and pay off the loan, then they take back, say, $15k seller-financed mortgage. Depends on how motivated they are.

EDIT: the numbers I mentioned are wrong. What I meant to say if the sale price is $15k, they take an $8k downpayment, $7k seller financed mortgage, and then they add $12k to pay off the mortgage. You pay off the $7k financed part over 5-6 years. I need more coffee.