All Forum Posts by: David Dachtera

If you have good tenants / customers, the easiest and fastest way to lose them is to screw them over.

My $0.02 ...

In my recent search, I've found that some listings with only one pic - usually front exterior - are tenant-occupied.

For what it's worth ... 

Agents and brokers are just like investors in that they are profit motivated. If you can't get foot in a lender's door, so to speak, they'd be wasting their time with you.

That said, if you can pay cash or provide other sources of funding, be prepared to demonstrate that ... for find another agent / property.

Have them sit down at your computer, watch them log into the service, run a new report and print it on your printer.

Hard pulls aren't that big a deal. If they can't take the hit, send them on their way. Their credit is likely too fragile to withstand scrutiny.

My $0.02 ...

I think everyone's comments can be summed as : lack of RE education.

So many think they can just go out, learn from their mistakes and get good at it. Trouble with that is it's the most expensive education you can get. In his early podcasts, BP's Brandon Turner describes how he lost over $100,000 in his early deals. That would have paid for his education 5 times and he could have avoided the losses due to mistakes.

My $0.02 ...

You may find that municipalities are driving part of this as the neighbors may not appreciate come-and-go tenants. MTR may be the community solution to such issues.

My $0.02 ...

@Scott Bridgehouse,

Purely my opinion ...

Regardless of how you're financing it, when analyzing a property as an investor, I would expect any multi-family property to meet commercial criteria. Especially, the DSCR (Debt Service Coverage Ratio): the NOI from the units you don't personally occupy should be greater than about 1.2% of the P&I on the property. 1.2% is a common value used by lenders to determine whether the property meets their "self-sufficiency" criteria. You may still need your own income or resources to build up reserves and cover Cap Ex initially.

My $0.02 ...

Well, technically, a tax sale is a form of foreclosure. The County holds a sale similar to a lender requesting a Sheriff's Sale. The County's tax lien is in the "zero" position - nothing supersedes it.

You mentioned owning it free and clear. Is a HELOC (with "accelerated underwriting") or some other loan secured by the property a possible option? ... or is your credit not good? (I don't recall right off whether tax delinquencies - prior to the sale - are reported to the bureaus. It is a matter of public record, of course.) Finding a lender might be challenge, I s'pose ...

How 'bout setting up a mailing list to receive the deals you turn down? 

"Hot water heater? Whaddaya need that for? Hot water doesn't need heating!"
- George Carlin