All Forum Posts by: Dan Travieso

Could you take the cash you have onhand to payoff the 3% loan and use it somewhere else that would yield a return of >3%? If the answer is yes, then it would make sense to not payoff the 3% loan. Yes, perhaps you use that money as a down payment to purchase another property and obtain a mortgage at 6%, however, if the cash-on-cash return of that property is greater than 3% (which it probably would be), then it would make better business sense to do that.

HELOC is definitely one option. I would recommend speaking with a few local community banks as they are much more flexible than the traditional big chain banks.

Like anything else, depends on the numbers. If you can make the number work with the hard money loan then go for it! but be sure to understand the terms, ie. repayment of most hard money loans is usually required within 6-12 months so you will need to be sure you can refinance within the alloted timeframe.

I had a similar situation with my properties in Tampa. I had to get an insurance broker to do the searching for me and deal with the new rules everytime they popped up.

Certainly! As long as you include updated risks when working your numbers. We can expect interest rates to increase up to half a percent next quarter based on what the fed implied. Probably assume the same for the quarter after that. We know the inflation % that can be applied when estimating repairs. And be ultra conservative on re-sale price. If the numbers still work, then go for it! Even when the 2008 recession hit there were still deals to be made. Just have to work the numbers right.

When you gave him the 20 May deadline was it in writing? If not, you will need to send a letter and keep a copy for your records. Depending on the laws of your state/ city, you may be required to give a certain amount of days (30-days, etc.). Regardless, once the date on the letter has passed you can conduct an inspection to verify that it was completed or you can ask the tenant to provide pictures verifying it is complete. If it wasnt, then you can send him a second letter giving him another week or two or you would have to file eviction papers with the courthouse. If at that point it is still not complete then you may have to file eviction papers.

Sometimes insurance companies are flexible. Call them and let them know what you are doing and request an extension to give you enough time to do what is needed. If they don't grant an extension then you will need to contact your insurance broker and find a new carrier.

depends on what he put on the disclosure. I have never heard of an investor making other investors sign a "disclosure" in order to get access to a Buyers List. I wonder if the wholesaler actually has the houses on the list on contract yet... These type of folks tend to give wholesalers a bad name.

as you said, "use it to rapidly determine how the property will cash flow". It certainly does not mean that a property that meets the 1% rule is a great investment, but it is a good quick way to do a very fast analysis in your head, especially when you are screening hundreds of leads a day or are in a conversation with someone. One should still do a thorough analysis before committing to buying.

since mortgage lender information (payment due dates, etc.) doesn't change often I usually track that on an excel spreadsheet. I use Quickbooks for my bookkeeping and update home value in my financial statement and Quickbooks annually.

 Nothing wrong with investing out of town but do your research. Don't get "lured" to a location just because the prices are lower than Chicago. Need to determine whether it a good area to invest in. Is the area growing? What is the average rent in the area?  etc. You can do quite a bit of research online to help find a good area to park your money.