All Forum Posts by: Chris Masons

I guess you could issue a receipt signed by both parties stating rent in full received on such a date via deposit.If you show a pattern of this it should hold up in court? If the rent is stated in lease and tenant only deposits half rent is not fully received and considered late as well. Just b/c a tenant puts a partial payment in the bank that doesn't mean payment in received in full. I am surprised this delayed the eviction process.

Habitual late payments are grounds for eviction too. A notice to cease and notice to quit are required for this type of eviction here in NJ where none of these steps are required for a non payment of rent eviction.(my favorite) I guess thinking more about it I can see how things can get clouded with a partial payment deposited into your chk account as they have paid something so maybe it isn't a clear non payment eviction.

curious to hear how laws work in other states.

thx!

Chris

Good grief!!!!

6% hands down! If it cash flows well (covers debt service @ 12% I should say)then at 6% you just need a good 6- 8 months to build up some decent cash reserves (which you should have some coming out of closing anyway) as you should be banking a nice amount at half the interest rate.

LOL Lonnie Scruggs would be proud!!

Thx Dave and Aaron makes perfect sense!

Aaron I have begun trying to train my tenants to make the rent deposits themselves also. I love the idea of giving them a pre filled out deposit slip (12) of them actually.

I also like how you have a dedicated chk account to receive the rents then you move them into your main account. Right now the tenants deposit directly into my main account. Seting up a sep. account just for rent checks sounds like a good idea.

The one gotcha that I cannot stand with having a LLC here in NJ is if you need to evict a tenant and go to court for anything even something as cut and dry and simple as non payment of rent, if you operate as a LLC you MUST be represented by an attorney in NJ vs if it is held in your name you can go to court without an attorney. I have been through the eviction process for NP of rent and i can honestly say if you know the laws and rules an attorney is not required for this type of eviction. Any other type I'd probably feel differently about.

thx again!!

chris

As always thx!

chris

Hi guys,

What do you mean when you say

"Just cap your equity exposure in each LLC, 200-250k is a common cap."

I am not following. If you don't have each property in a seperate llc doesn't that give you much more risk/exposure? For example if you have 3 properties each in their own llc if you are sued for something on property A and lose the most they can take is property A vs if you have one llc and 3 properties and same situation can't they take all 3 properties in a bad case scnario??

thx in advance,
chris

Hi Bob,

If you are getting a HELOC on your primary residence why does your LLC come into play or need to? Is your Primary residence held in your LLC? If not you should be able to secure the funds as usual and at that point you can use those funds to aquire your SF investments.

Am I missing something?

Hey Brian,

Yeah I know I won't find those rates with a hard lender unfortunately. Still trying to save this deal as it's a great house in a great location and I have an exit stra. in place already.

regards,
Chris

Thx guys. I was afraid of this answer but wanted to ask anyway. It's a shame b/c this could be a great opportunity if it wasn't for this flood insurance.

Any hard lenders out there willing to carry a 5 year balloon note at a conventional mtg rate?? :)

Chris here from NJ. Great site here guys. Look forward to spending time here and getting to know you.

I am a RE investor/Landlord here in NJ. Always loking for good deals and partners to great investment opportunities.

I actually have a great opportunity to pick up a really nice 2 family at a great price that will cash flow nicely. Not only that, my ready to move in tenant will buy the property from me in 5 years and make payments to it in meantime in edition to rent.

Issue is it is in a flood zone - mind you last hurricane irene here in NJ not a drop of water in basement.

I looked into pricing on insurance and it was pricey around 2,500 a year. Does anyone know if this can be shopped or price is set by Fema? Lastly any thoughts or ways around this? I know area well and have spoke to neighbors so i feel confident about the property enough to move forward just paying those premeiums totally kills my profitability.

thoughts? Am I SOL?

Hi Hal,

I am in the process of selling a 2 family via contract for deed sale here in NJ. the buyer will by taking posession of first fl (original tenants just moved out) and 2nd floor tenants will remain in place and continue to pay me directly. My buyer just has to come up with the difference based on the financing I gave him.

It works out for both of us as he is giving me exactly what i paid for it back in 2003 (which i could not get in todays market here in nj) and with 20% he is no likely to walk away. I am providing financing to him. My mtg will remain in place.

The contract for deed sale varies from state to state so make sure you have correct language in your CFD contract.

I like it b/c I am getting nice chunk of change upfront and will be making interest over life of loan as well. I am not holding him to a 5,7 or 10 year balloon as this will still be a long term investment without the landlord headaches and maintenance. And if he ends up getting traditional financing later on so be it, but it won't be anytime soon.

hope it works out for you.

regards,
chris