All Forum Posts by: Account Closed

I'd prorate, that seems like an awful lot for your accountant. Which in my case is my wife. No way, Jose!

Very anxious to see the answer! Great question!

@Caleb Heimsoth Thanks a bunch!

I did know about BRRRR before posting. We're just at the point now, I think, where we just have to do the first deal. Seeing as most people are saying that their first deal takes quite a well to get going...perhaps we just need to say "It's time to go."

I hadn't considered leases longer than a year. As a renter I never was given than option. What would be the advantage for the renter signing that long? I guess the no price increase. Before I got married I was such a gypsy I would have never wanted to have been tied down that long.

We've got 100K in credit available, and aside from flooring (No payments until 2020 kind of deals) I'd really rather not charge all the reno. Capital is going to be the key, which is where we're short. HML is my next research project it looks like.

Thanks!

Welcome!

My wife and I just joined here a week or so ago. This is a great place for knowledge. You have to figure out how to ask the right questions, and then the answers come faster than you can read.

We're in Dallas.

This subject terrifies me. I too get gut feelings and I've learned to listen to them. It keeps me awake at night thinking about denying an application and then being accused of something that isn't true.

How do you explain to someone who will see discrimination in any situation that it's just business, and that you were making the best decision for your bank account.

Grrr.

@Jennifer Z. Thank you for that very detailed and informative answer.

I need to research HML, then. I sort of dismissed this path thinking it was perhaps along the line of a "loan shark" or a payday advance.

Perhaps this is the rookie in me, but 6-12 month hold times seems too slow to me. I guess I should focus more on the positive cash flow then.

Thanks again Jay-Z #seewhatIdidthere

DK

We all know there are good renters out there. I want to talk about the ones that aren't.

9 out of 10 people being evicted don't show up in court to their eviction hearing. That's what I've heard, is that about right?

I was evicted twice in my youth, both times because I just moved and then didn't pay the remaining balances. Years later when I cleaned up my credit, boy did I pay.

Once of those evictions turned into a Garnishment. They got all of my tax return too.

How do I put language in my leases to ensure the above happens to every tenant that jumps ship on me. I realize many of late night movers don't live in a credit world, and may never pay their bills. I want their tax returns, I want to garnish their pay.

Additionally, I want there to be big fines for even getting to this process.

"Initial here, saying you understand that if you're evicted, you will charged a $2500.00 Eviction Processing Charge"

Stuff like that. 

I understand you cannot collect rent twice on the same property for the same time period, but I would think there can be expenses. At some people some of these people will attempt to clean up their credit, I want to be standing there with my hand out when they do.

I know it sounds terrible, its just business.

I love data, I really, really love my data. Wow, there is a lot of information here. I'm just getting started but seriously, every minute of this process I have to forgive myself for not starting sooner, what an IDIOT I was.

I'm 44, and have been a Regional Commercial Facilities and Property Manager for almost 10 years. I also have my real estate license.

Wife, yes mine, takes her CPA exam next summer upon completion of her Bachelors.

CPA, PM and Realtor, yeah, this is what got it started for us. Credit scores are 700 and 770, and we have about 15K in savings, ZERO debt minus our house (Thank you Mr. Ramsey), and about 50K in retirement (Roth IRAs, 401K and 403b) that we just started last year.

I've built, copied, modified all of the CAP spreadsheets and Cash Flow calculators. We're looking at 15-20 properties in 7-15 years, which will be just an insane amount of cashflow. I know how to track/forecast predict end of life on capital items like roofs, driveways, HVAC, appliances, etc. The money at the end, even with 5%-9% Cash on Cash ROI, is spectacular from my perspective.

Getting that ball rolling is the key...

So Property 1 (here is where I ask my questions)...

Buy a Foreclosed or Dramatically Reduced (Not in this market) Property

• If we can pay cash at this point, we should, I get that bit, but CAN this be financed through a bank? I assume that's where the hold time for a cash out REFI would come in, yes?
• If we pay cash, I assume there's no wait on a REFI?

RENO

• This part I get, flooring, paint, landscaping, updating bathrooms, kitchens, etc. I get it, minimal spend for maximum appraisal.
• Should I be working with my own appraiser to target exactly what we should do to increase the value. (You know, sometimes you just gotta type that stuff out loud to make it click. Sorry, disregard.)

RENT

• This would need a long term lease, at least a year or will shorter ones work?

REFI

• My plan falls apart here. I know NO ONE in lending! None. The guy who did my home loan I wanted to throw out of a window. So much so that my kid dropped her have eaten sucker in the back seat of his SUV and I didn't say a word. I'm also not sorry!
• Do you start with banks? Is there a pay service to find the right lenders? Credit Unions? Like I said, this is the area where I get lost.

REPEAT

• Do most of you break even at this point, or is there some cash profit aside from equity. I'm looking to hold these properties for the foreseeable future.
• If profit in cash, is that rolled in total into the next BRRRR or do you eventually split and do two at the same time, or perhaps do one and then grab a second say 60 days in, etc.

I apologize if this is all over the place.