All Forum Posts by: Jack Smith

Awesome!  Will check that site.  Sorry, trying to explain what's going on can be confusing!  

How long is a normal season requirement?  

Hi Alecia, 

I'm the mortgagor and rehabber (I'm a rehabber, not a finance guy!).  I'm trying to convince them to create a note and then we can sell it so they can cash out.  It'll be seasoned just a few days... It's a typical estate sale where retail won't work due to distressed house conditions (needs connected to sewer, windows, electrical...).  

Yes, I'm trying to facilitate the sale of the note - ... based upon what I posted, what kind of discount would buyers want - 5%?  10%?  

It's our family homestead and I'm trying to find an exit strategy for Aunts & Uncles.

Thanks Cameron!  But I have no idea what or who is an RMLO... I have many notes on properties, do we need an RMLO to sell them?   

I get it about the interest rate - it's very low... which is good for me!  I'm not writing notes to folks for that high... so they might want a discount on the face value?  I can take that to keep the interest rate where it is.... 

I am negotiation on a property with sellers to create a note for $70k, 5% interest on a 30 yr amm, 10 year balloon. Property is a duplex in NE Ohio. Needs about $15k in repairs I will be doing this fall. After repair monthly revenue will be $1400, ARV will be about $120k.

Is this a note buyers would be interested in?  

Maybe our REIA's are unique in Ohio as they are not individually owned/directed. All of our chapters are aligned and under a state level association with our boards, conventions, and even lobbyist to represent us in Columbus. Once you join one chapter you are automatically entitled to participate in any chapter in the state, which is great as many of us invest in different areas. They are run like most professional associations, which really makes it a friendly community. It's certainly a group that I am extremely happy to participate in, it's how I got started back in the early 90's, long before the internet was useful. Most of our meetings are held on zoom/gotomeeting right now, but some of the subgroups are meeting in person. We have weekly breakfasts, landlord groups, private lender groups, multifamily, wholesalers, and others. I can't see why an active investor in Ohio wouldn't join one - very well worth the annual couple hundred dollars.

Check these guys out... haven’t been to their meetings but most OREIA meetings are online right now.  

https://www.greaterclevelandre...

https://www.gdreia.com/

https://www.centralohioreia.com

Yeah... maybe outside of some early spring flooding, Euclid isn't much different than any other NE Ohio community.  That said we've had a really wet spring and are just finally getting some hot days to dry things out.  Most basements in Ohio are going to get some level of dampness, that's why sump pumps have been pretty standard for the last 20+ years.  

How much accumulation are you getting?  Like Tom said, 99% of basement water issues are due to downspouts not working properly, improper grading, lack of sump pump, or some combination of all three.  The first two are not so expensive and should be in place and maintained properly.  After that you can spend a lot of money waterproofing and installing a sump pump, or just accepting how much you can live with.  If it's a flip you may not have a choice.   

I've not heard of anything one way or another, I just always thought it was good PR to do so.   

You can handle it in a few ways 'sorry, one of my staff already performed it' or, 'One of our staff members will be doing it as their scheduled allows... not sure when that will be'... blah, blah.  If it's legitimately for security reasons make sure you document the specific reasons and add it to your SOP to head off any future claims.  

My bigger question back to you is why not?  Especially if you know it will be a clean inspection?  Turn it into a positive and compliment her for what's she's done (I'll keep a PIA resident anyday that takes care of the unit over those that don't care and leave a mess).  Control the conversation and don't let her bait you into any debates. 

1.) Learn your market to become a more intelligent investor.  

2.) Ask your PM for comps to make an educated decision.  

3.) You make the call, it's your property, and live with the results.  Be the boss of your investment!

Every PM is biased by their work ethic and their agreement.  Everyone has their own motivations... which generally isn't to make or save us money!  If they get a commission with each new lease there's motivation to have regular turnover.  If they get a cut of rent-ready costs, they make even more money off you.  However, if the market rates are increasing you can get higher rents, they get higher commissions all around.  

A 3% increase is a nuisance increase in this economy, I'd bet you're under renting at that pace.  With this conservative approach I'd assume you're probably below market to begin with and this would only put you further behind.  Greatly agree with other sentiments that your PM is playing it safe / lazy.  This kind of recommendation would make me suspect of the PM.    

"If I collect last month's rent and then a tenant becomes delinquent in payments..."

If you've collected the 'last month's rent' then how can they become delinquent in further rent payments?  Isn't that the last month of their tenancy?  

"...must the last month's rent be used before an eviction can be filed?"

The security deposit is not considered rent unless they don't pay the last month's rent.  If they haven't moved from the property after their last month of tenancy, whether they paid the last month's rent or not, then then they are squatting and you should evict.  It's not uncommon for some tenants to sacrifice their security deposit by not paying their last month so they may use their money for the next property's security deposit.  They figure we evil landlords will screw them out of it anyways and we won't bother with coming after them for only one month's rent if they've already moved out.