All Forum Posts by: Lynn Z

have you all noticed no one knows how to clean a stove or refrigerator these days? Not to mention the mini blinds are always pulled up to the top as if they are hiding dust and you won't notice. And those pesky furnace filters are over their heads. The best trick I've tried is a lease agreement that allows quarterly pest spraying and the landlord to be present. That way the filter can be checked and changed if necessary.

Get the security deposit. they usually are getting it from a credit card source anyhow. People are pretty broke right now I fear.

I have partnered with experienced family members in the business and my child who also worked hard, etc. etc. Many times when we visited a bank or mortgage broker they discouraged the loan application in both names for one reason or another.

If I sign the mortgage and provide the cash needed to get the property I would take the depreciation , taxes and interest writeoffs until the offspring has put money into repairs or lived in the property to make it a viable investment. When able, move the investment over to the offspring. That worked very well for us.

If it's experienced family members, whoever has the cash to make the deal work puts up the money, the other party might get the long term mortgage after rehabbing. In the end, both parties split the tax considerations and writeoffs and the risk. That has worked very well. There's a big difference in each type of partnership.

We just go to the magistrate's office and fill out the paperwork directly. Can't afford to pay a lawyer if you're evicting and losing money already. Also, not all evictions end in tenants' leaving. Sometimes it works out and they pay up.

In our city, a university town, the best and closest neighborhoods can get from $1150 to $1500 for a group of students. A working professional might pay $750 for a 2 bedroom apartment or a small house. Obviously, you must have real experience to manage multiple person rental and in nice neighborhoods they really hate this type of rental. This spring was the first time rents have been decent in years. This fall is terrible. It picks up in January but the best rental months are July and August. If you are 2-3 miles from the university and downtown no students want to rent your house or apartment.

We're in S.C. and have fixed up property but it has been very hard to get good tenants lately and adequate potential tenant traffic these past few months.

Realtors are not interested in FM rents. It isn't an interest unless they own rental property or cater to investors.

my child owed 24K student loans and had no hope of getting rid of the debt. I financed a bungalow for her to manage and live in. She advertised at the local law school and got a working roommate. That made the mortgage payment and covered PMI (yuck). Paid $110 and sold it a year later for $135 with no fix up. She found a beaten up triplex for $198,000 in a better block and it has paid for student loans, a wedding and living expenses when times were real tough. She put the remodeling dough in the worst unit and lived there 5 years. Still keeps the owner's apartment and the other two make the mortgage payment. It's worth about $300,000 now. Finally got it financed in her name and she wrapped the student loan into the refi. I took the writeoffs and depreciation for the years I financed it. The basis for the depreciation transfers with the title change. Get a parent on your side in the beginning. Maybe they need writeoffs while you may have enough money to remodel. They're not going to stiff you.

who can afford a management company and trust them to pick a tenant with some scrutiny? A visit to one of their offices shows people walking through the door and picking up a list of properties in a box and leaving with that list without speaking to anyone. Besides, it's so much fun pressing flesh with tenants, don't you think?

WE get a general application filled out and use a service to do a background check (evictions, landlord references etc.). That way if they flunk they can get the bad news from the landlord service, not you. It's worth $25.00.

My last realtor was my yard contractor's son who worked hard for years helping to built their business. I'm a client. He wrote me a letter when he left college and went into real estate and I called him when I went looking for a buy. It was a difficult buy and he learned alot from the transaction. Tomorrow it might suit to use the listing agent of a house I'm interested in but yesterday I felt he needed business and I returned a favor for many years of what I consider his hard work. If I weren't doing well FSBOing properties this year I'd use him on the selling end as he has continued to show interest after the sale. I like helping new agents whenever I can. Most agents, male or female, don't particularly like working with investors. I have always tried to find one that has a feel for numbers, FMV and good ideas. Also, someone who won't cringe with submission of low ball offers.

Commercial bankers want you to put 20% down on the investment purchase or they might cross collateralize some property you own (take a first mortgage on that property) to loan the money without the 20% down. Once the house is remodeled you can get long term financing (if you holding it).
The rates are good and they'll usually do interest only for the rehab period.
They might charge .5 pt for the loan which is very reasonable. Closing costs are minimal when compared with other types of loans.

This year they included a penalty if you obtain long term financing. Waiver if you move into the home as a residence vs. renting it. This is happening because so many investors line up the short term financing and bow out too soon.

I sold five houses between June and October this year by FSBO. If you have a product that is remodeled to the 9's and are willing to have a good series of open houses...you can sell your own houses. You must put out signs, have attractive color flyers with good information and be willing to answer the telephone and show your house at the drop of a pin. You must be open with everyone and answer every question...even the stupid ones. Don't be sensitive. Keep those tubes filled outside of the house daily. People resent finding an empty tube. Have several examples of a contract. A buyer will not (I repeat) have any idea where to go for a contract or how to get a copy of one to even amend...so help them get to the information as much as possible.

After you finish remodeling a house...no one knows more than you do about that house. If you don't have a sales personality...get a friend to help you show your house. I never have enough profit to pay 6% commission to realtors but I will always agree to pay any realtor 3% if they want to bring a customer through. They never do want to make that split of 1.5% with their broker but I'm sorry. They may wish one of these days that they courted FSBO's.