All Forum Posts by: Joe Gee

Thanks Jon!  Yea when the broker told me "I don't like owner-financed deals because...." I knew it was because he wanted the loan from me.  But I listened cause to tell you the truth I've never done an owner finance deal, and I don't know the drawbacks of it, especially if it is that long of a note.  The seller is an established commercial contractor and I don't get the impression he is hurting for the money.  He just says it's better for him tax wise to just collect 5% on his money.  I'll look into a servicing company to sort that out if I do go with his deal.  Thanks for that tip.  

So I have a dilemma.  I'm just put a house under contract that I plan on occupying as my primary residence.  While I was at the meeting with the seller, he asks if he can finance the deal.  He says he basically doesn't need the money, he owns it free and clear, and the terms would be 30 yrs fully amortized, at 5% interest, 10% down, no pre-payment penalty.  My original plan was to buy with a conventional loan with 15% down.  If I could get away with putting 10% down that would be better.  

The seller and I agreed that we would think it over and get back in a couple of days.  

I called my mortgage broker and he doesn't like the idea of owner finance cause there are many if's and but's. Primarily, what if the owner dies? I didn't think about that. I'm sure there is a back up plan to that. He says he can get me in FHA, 3.5-5% down, but I would need to do some repairs first.

So I guess my question is, is a 30 yr owner finance deal something that I should be worried about?  Can anything go wrong with something this long?  It's pretty hard to pass up those terms.  Especially since the underwriting won't be as stringent, and it won't take very long to close.  

Thanks

Hello BP! 

I have a tenant who hasn't paid rent this month, and it is already the 20th!  Rent is late on the 4th, but I don't have a specified date on the lease that says "if rent is not due by XX, than eviction will begin."  I'm trying to work with my tenant.  She got behind at work and missed bunch of days, and is now playing catch up.  

It's already the 20th, should I start filing for eviction?  

In your experience, when do you start filing for eviction if your tenant is late?    

Thanks! 

Best wholesale deal I've ever done was a $30,000 double close deal.  I was sort of struggling with wholesaling at the time.  I was just getting back in it after about 4 months without a deal.  And then I got the call.  I still remember where I was at and how I felt after the call.  I knew It was a smokin deal.  I've had an even bigger deal ($50,000) that was meant to be a wholesale deal, but I took title to it first and cleaned it out (its was a hoarder house).  I've learned that these deals are the exceptions and not the norm when it comes to wholesaling. I've made the mistake of trying to push for that $25-$30k deal and it just turns my buyers off seeing that "retail" price tag.  I've learned that the $5-$10k deals are the bread and butter of my wholesaling business and Im happy with that.  The $25-30k deals are the cherries on top.  

All real great stuff!  I was on the fence about leaving the hookups, now I'm convinced.  It will be too costly in the long run. 

Thanks for the advice! 

Currently upgrading a four-plex in I would say a "B" neighborhood.  Small 1/1.  

I'm trying to decide If I should provide the tenants with a washer dryer or just leave the hookups available for them to purchase as an option. 

I would save about $1100 per unit if I didn't provide them, and since it's on one water meter, I would be saving on the water bill.  

However I do want to make the units attractive so I can get quality tenants.  

Any experience on this?  

Thanks

Currently there is no real drainage system. It has an overhang but no gutters so the water just drains off slightly to the front.  I had about 3 bids. Two bids were about 13-14k to replace, the other local guy is charging me about $6500 for same materials/labor.  The other two bids were from big roofing, highly rated Angies list roofers.  

We did discuss putting more ISO boards down to slightly pitch it so the water won't puddle up but it will be more $.  

Hello BP, 

I purchased a 4 plex recently and looking to replace the current flat roof.  The current roof is leaking in one area that the last owner patched up unsuccessfully.  The rest of the roof is holding up, but its pretty old and probably better to just put a new one on.  

My question is, do I rip off the old tar roof or just go over it with the new TPO roof.  My roofer said its better to just go over it, and if I rip it off it will cost a hell of a lot more money, not to mention open up a giant can of worms.  But if there is rotten wood underneath, I would want to deal with it now rather than cause more problems down the line.  

Has anyone dealt with a flat roof replacement?  And what do you recommend?  

I plan to keep this 4 plex in my portfolio as a long term buy and hold. 

Thanks

@John Hickey Yea keeping the tile in place seems to be the better alternative. Going to explore this option. Thanks. 

@Monica M. Hi Monica, 

I'm currently in the same boat.  Can you share the outcome of the project?