All Forum Posts by: Michael Glaser

Originally posted by @Jessica Zolotorofe:

You can just sign the contract dated Jan 1 and have it held in escrow by your or his attorney.

 As in, make the contract's date be January 1st. Sign the contracts and date our signatures as December 20th?

Purchasing property, waiting on appraisals. The seller recently said after we signed a sales contract in November that he wants to have the contract go into effect Jan 1, 2017. This is to avoid capital gains he'd have to pay in April. I get it, I'm fine with it. The issue I have is that I won't be in town January and want to get this thing going January 1st or before.

How might I amend or restructure the contract to be able to sign in December, but have the contract go into effect Jan 1. I'm sure there's a name for that...

Originally posted by @Mike D'Arrigo:

@Michael Glaser I'm not clear what the issue is here. The title of your post is denied because you're out of state but in your post you say it's because the bank doesn't like the location of the properties.

 The bank doesn't like the location. This is the same location where my seller has been renting for 20yrs. I'd say C to C-. 

I'm wondering if I start the process with my two backup banks at the same time is unethical in case one or both deside the same as bank one?

66104

Doing an off-market deal in Kansas City. I've been working with Arvest Bank's Overland Park business loan branch for a little over a month. They said my yearly income is great, credit report is great, but informed me only today that the houses are not in an area they see good rent potential. 

Three out of the four houses are currently rented. One is on the MLS, but ready to rent.

BP Calc Numbers *conservative estimates: 

Monthly Cashflow: $714.02	Pro Forma Cap Rate: 9.37%
NOI: $20,619.60	Total Cash Needed: $39,400.00	Cash on Cash ROI: 21.75%	Purchase Cap Rate: 11.65%

One of the banks has a good relationship with the seller whom I've already talked to early last month, but went with Arvest instead. I'm going to be calling them in the morning along with another bank I cued up early last month.

I'm wondering if it's good to do two business loans at the same time in case another falls through?

My closing is November 16th, which I won't make now and I'd like to get this thing to the finish line. The seller has more property we're going discuss next year about owner financing, but he's not there yet.

@Jay Hinrichs & @Brandon Schlichter,

How do you guys collect rent on these tenants?

Brandon Schlichter how do you best verify their work history?

Jeff Beard I appreciate your reply and your experience. I think people are getting carried away with how they think I'm going to vet tenants. "I'm going to get a good FICO score from John Die and then have them sign a lease and have them move in...." That's how people are answering my question.

@Jeff Beard I agree that the credit report is something to pick apart along with all the other due diligence systems that all go into vetting a new tenant, as I stated above. The keyword throughout this thread and even in the subject line is "threshold". Going through multiple credit reports takes time. The kind of time that can be spent doing other things like researching other deals. Not, "Why were you late on these car payments?", "Wow, great job hacking your Southwest airlines card for miles and sacrificing your FICO."

The goal would be to add to my LONG list of vetting systems with potential applicants a FICO number where I won't accept, moreover, won't spend the time to see if this guy or gal is credit card miles hacking, piggybacking off someone else or just a lowly rocket scientist that lives on the moon. That's not the point of my question. 

For example. If given the chance to spend the time on credit reports of people in the low 500's or people in the high 600's, I'd be willing to bet the majority of you would spend their valuable time on the high 600's. 

Time: Spending time looking through the reports, asking questions, moving onto other boxes to check in your systems.

Until @Brandon Turner & @Joshua Dorkin  can stop saying mean things about each other on the podcasts and devote more time putting a "poll" option on the forums. I'll have to try and keep people like @John Anderson  from taking threads off the rails. I realize the advice is coming from a good place, but I've heard multiple podcasts where a successful guest has a specific FICO number in their systems. All things not being the same I asked a somewhat specific question about the number, NOT the process, NOT what a FICO score means. THIS... is the number I'm after for C to C+ property in Kansas City... 

So feel free to answer my question.

THANK YOU @Rosston Smith for reading my posts and answering my question.