All Forum Posts by: Christopher Dunson

Some companies are asking if I have had an asbestos test done as the building is from the 1960's, and will not come out otherwise. Others aren't asking. Is this normal? The building structure is block wood and drywall.

@Andrew Johnson

You are correct. I'll be covering everything back up. Thank you.

I just recently purchased a fourplex and am doing some renovation while the tenants are there. To keep this straight forward, I just opened up a wall where there was a bad water heater, because there were signs of mold perforating through the drywall. On the other side there is about a 5 by 2 FT. high area spotted with black mold. On one side is the bathroom and on another is the kitchen. I have insurance on the property, and I am looking for the best course of action as there are tenants there.

I am currently thinking to cut out the entire piece/ pieces of drywall that are affected and spray the 2 by 4's and everything with a solution(which I haven't found yet and am opened to recommendations) as a temporary solution to help stop it from spreading. Call insurance and mold company. Notify tenants and let them know keep windows open while we are fixing it, as well as they have the option to cancel their lease and so on. Any advice to do or not to do (Pro tips)would be excellent and much appreciated. Thank you.

@Chris Purcell

I'm somebody that likes to keep situations simple, and by letting emotions and how you feel get involved, one can make any situation very complicated. If the market is indicating to raise the rent, I would. If they are a good tenant, and you are a good landlord, then they may understand. It's definitely always nice to show some kind of rental trend in the area to the landlord via a graph or what not so that they understand. 

I just purchased 2 4 plex, and sent out a 60 day notice to increase rents. The previous landlord didn't take care of the tenants or fix simple things that the tenants needed somtimes for months. The day I purchased the property I let everybody know via notice that I would be fixing any problems that they may have such as plumbing, electric, whatever. I have given them a good impression, and every single tenant has signed a new lease. 6 tenants had their rent raised $100, and 2 had it raised $150. They're happy and understand that they haven't had a rent raise in 3 years, they are still slightly under market, and rent raised 20-30% in the past 2-3 years.

@Mark Gallagher

@James Masotti

Yeah I know what you mean. This loan officer has only been in the game for a couple of years at the most so I'm sure he's not familiar with things that are outside of the norm.

Having said that, are you under the impression that the woman sold a property? Because from what I've heard she did not. She just owns several properties out right. At this point, I have no idea what the UNCERTIFIED funds are. But from what I understood the underwriter is not accepting them. She can pay me them though quickly after the deal goes through(closing of the property).

I'm sure I'm making it more complicated than it is. I just want to make the deal happen. Thanks to everybody pitching in. It's really helping me to think of the scenario in a more clear way as I'm not used to thinking on this end of the deal.

@Mark Gallagher

Yes exactly. I was talking 7 pts to close. As long as she pays back in time she wont even have a payment. Yes, I would prefer the loan term to be around a month as I was planning on using that money for other things, but on their end the underwriter would have to approve so for that reason I may have to do a longer term.

Of course if the loan didn't conclude in 2 weeks. Then I have it play out with the interest only. baloon in 6 mo- 12 mo. I'll have to plan if she doesn't pay me back in the two weeks, because I'm closing on a flip in a few weeks as well in which I was planning on using that money. I will have to plan on alternative methods to fund just in case.

@Mark Gallagher

@James Masotti

From what the loan officer told me, she has the funds, but they're not certified. So I believe the underwriter is not accepting them. I'm not sure what form they are in. I will definitely be confirming that if things move forward. Just out of curiosity, what do you think is an adequate fee for something like this? I personally would be more than happy with 7% on the $45,000 I would be loaning. Normally, the HML's charge me 5-6% on the purchase price to close a deal. So, I feel its fair.

@James Masotti

Would it be any problem that the note would only be a 2 week period since that's how long she says until she can pay me back? I personally haven't seen a documented loan for that short a time period before and want to be prepared if I need to lend for a little longer.