All Forum Posts by: Chad Swinford

All,

I am a veteran RE investor and am struggling finding any decent terms for a portfolio loan of three properties (all BRRRs) right now. I understand the current economic situation, but I'm hoping that I can find a lender that will still do 75% LTV, a rate around 8%, and without PPP. Are there any lenders that you are currently using that you're still having some success with?

TIA!

I have an issue that I’m sure I’m not alone in. I need some help thinking through how I’m going to move forward with a tenant.

For context...I’ve owned rentals for 15 years and currently have 10.

With COVID, Indiana passed a moratorium on evictions which has recently been lifted. In my county, as in many in Indiana, there is an onslaught of evictions and my property manager is saying the courthouse stated evictions filed today will not be seen for at least 9 months.

Most of my units are doing great, but I have one where the tenant hasn’t paid a dime in three months due to “COVID related employment issues”. I have reason to believe they could pay at least some rent, but are choosing not to.

Do I roll the dice and hope that they begin to pay and eventually catch up on their $1,200/month rent, or file eviction now which is basically a guarantee that I won’t receive a dime for at least nine months?

Or do I take a completely different approach and knock on their door and try to make a deal with them?

What would you do?

Indiana is going under quarantine starting tomorrow and I am buying an off market house tonight.  Here is the language that I was given by my agent to use in the contract:

Notwithstanding any other provisions of this Agreement, the parties agree and acknowledge that in the event either the Buyer, Buyer’s lender, Seller, any of their respective service providers, government agency or any other agency becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Closing, or if Buyer or Seller is the party to another transaction that is delayed as a result of a voluntary or mandatory COVID-19 virus quarantine, that results in the parties inability to perform on the Closing Date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted, up to a maximum delay of thirty (30) days unless the parties otherwise mutually agree to extend the performance date further. Upon the expiration of any automatic or agreed extension, either party may terminate this Agreement without any further liability to the other party, and the Earnest Money shall be immediately refunded to the Buyer.

I have been investing for almost 15 years with rentals and flips, but I am still learning as if I were only doing it for 6 months. While I'm not a "Newbie" per say, I still have so much to learn that it sometimes feels like I am.

I've been BRRRing properties for 12 years, and seasoning is still my biggest frustration.  It's still my favorite strategy and the one I use a majority of the time, with a few fix & flips sprinkled in.

I am in Indy and also use Caliber Home Loans, so long as the property has surpassed the seasoning age.  PM me and I can give you my contact on the South side if you'd like.

I always focus on quality with my contractors, and sometimes that leads to uncomfortable conversations.  Regardless of their rate, they should take pride in their work and we can't work together.  This doesn't need to be confrontational, but the conversation really needs to happen.  This same level of effort will show up in everything they do, and that can get expensive for you; whether that be in re-work or vacancy rate.  It will hit you financially.

I am certainly on the positive side, @Matthew Paul.  But I want to stay there as much as possible :)
I also want to make sure I maintain a good, healthy relationship with my team members and be generous with them, but not where it isn't necessary. LOL

I like the Chris Voss reference, @Jack Medford.  Yes, I have read that. Thanks for the reminder.

My wife gets a 1/4% of our agent's commission, which is nice (that it's a %).  The last house we sold was for $200k, and she received a $1,400 days later.

Thanks for your opinion on this.

My wife holds her a real estate license and is in referral status, which means we get a nice little kickback from each property that we buy/sell.  My realtor has recently moved to a new company and we were loyal and followed her so long as we were still able to get the 6% commission and the aforementioned kickback once we moved my wife's license to the agency.  

I just received a request from her that we begin paying a $206 "Agreement & Disclosure Fee charged to her at each closing.  We buy and sell several properties each year.  Most of the properties we buy are off market, but we sell them all through her.

I don't WANT to be greedy and say 'no, we won't pay that fee at each closing.  That's part of the job.', but I don't want to be foolish and just hand out money at every turn.  Again, I have been loyal and plan to continue to be loyal where it makes sense (ie, same market).

What would you do?