All Forum Posts by: Chris Igard

Not a huge fan of dropping that much to buy the loan down to 4.5% on a rental. If you can cashflow at todays rates why not invest that money elsewhere. If you cant, sinking money into a rate buy down seems to be a fools gold IMO. Now the question of 10% down to get an extra 3% concessions sounds good. Free money since you are putting more down on the home.

Nick would it be smarter to put 5 percent down, pay the $3k in closing costs and invest the money elsewhere? I’m taking a risk in the assumption that the interest rates will or may go back down sub 5 percent. Secondly, I can invest the $7k I’m saving elsewhere and double or triple the money I would use now to purchase another home in the near future. Just wondering if I’m over thinking it for $7k.

0 Votes

Houston, Texas

Hey folks I’m going to live in this home for a year or so then turn it into a rental. Financing rate is the smartest one to choose if I want to continue to purchase nhomes down the road. Pic 1 is the interest rate paying 10 percent down and the lender giving us 6 percent in closing cost coverage. Pic 2 has us paying 5 percent down, in that instance the lender will only cover 3 percent of the closing costs. The third pic is ten percent down with us us buying the rate down to 4.5 percent. The home is $203k my thoughts are that I should pocket the approximately $7k and save it for another house down the road. It would take 6.5 years for the savings to catch up. Just wondering what the smart choice would be for smart businessman. Thanks in advance. I should be able to rent the property for $2400-2700 when I move.

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Houston, Texas

I don’t know John I’m not sure if financing a loan to the bank and to a private financier would make much sense.

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Thanks for the replies. I get the moving forward approach but I think it’s in my best interest to report it. Unless it’s some arduous task or costs 100s of dollars I’m not sure why you wouldn’t. I’m not concerned with getting the money back. It’s the principal of the matter. Thanks

2 Votes

Quote from @John Warren:

@Rene G. is 100% right here.

We manage a predominantly C class portfolio in Chicago, and we have units that are left in poor condition regularly. Many legacy tenants will stiff us on rent on the way out the door as well. The collection process isn't simple or fair for landlords in these cases, but we will report them through our software and let a collection agency deal with it.

In terms of screening, this is where people are going to have to start digging in deeper. Bigger Pockets has been around for a while, and the 6XX credit score, 3X rent metric isn't enough anymore. You have to really dig in to see if stories make sense. Rental fraud is rampant, and using common sense is important.

Thanks what software are you using to report to the collection agencies?

1 Vote

Thanks for the reply. Curious how apartment complexes get it on your renter history or credit report.

Quote from @Adam Martin:

I really don't think there is a database for bad tenants outside of the credit bureau. If they left owing money consider suing them in small claims court to collect a judgement. You are unlikely to get paid but that doesn't mean it is impossible and for the cost I'd do it. My first priority though would be to get it rent ready and focus on current and future profits. After you win your case google landlord collection agencies. Even if they don't collect the name of the agencies alone would make it hard to rent in the future and who knows, they may need to clear their credit for a job or to buy a home and you may see some money. There are going to be a lot of people telling you to get over it and it isn't worth the effort but if we all followed through we would all have more warnings and avoid bad tenants plus maybe people would think twice if they knew there was a high likelihood of consequences. Although I would know deep down it was probably a waste of money and time there is a part of me that likes a good mix of justice and spite as well of the unknown of possibly seeing some money owed.

1 Vote

I posted this earlier but I think it was confusing. I’d like to know if I can report this broken lease on their rental history. Secondly if they leave the place trashed can I file it on their credit report. thanks in advance.

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Thanks but do any of these offer a service to post the eviction of a tenant or post it on their credit report?

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Hey Caroline thanks for the reply, it is a bank foreclosure. I've been an agent for a while now, the comps are spot on. The risk is what I am concerned with. My income will increase, credit will stay the same. Thanks again

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All Forum Posts by: Chris Igard

Chris Igard has started 21 posts and replied 43 times.

Post: Should I buy down the rate and lower closing costs on a new construction subdivisio

Post: Should I buy down the rate and lower closing costs on a new construction subdivisio

Post: Should I buy down the rate and lower closing costs on a new construction subdivisio

Post: Am I making a poor decision

Post: Tenant broke lease how do list it on there rental history

Post: Tenant broke lease how do list it on there rental history

Post: Tenant broke lease how do list it on there rental history

Post: Tenant broke lease how do list it on there rental history

Post: How do you post an eviction to tenants renter's history or credit report

Post: Am I making a poor decision