All Forum Posts by: Jason Krawitz

Greetings from Nashville! It's 70+ outside here and beautiful today :-). 

I'm searching for solutions/suggestions/ideas. I bought a property last week with a new partner. We took title as LLC1 + LLC2 as tenants in common. 

The problem is we can't open a bank account with both LLC's listed as owners of the account.

Suggestions on how to manage the finacial transactions for our TIC partnership without compromising either LLC? If we do all of the banking in LLC1's name, would listing the PERSON that owns LLC2 as an authorized signer pierce the corporate veil? Surely someone else has done this and has an EASY solution. I HOPE!

Thanks!

Jason

Thanks for sharing this Rob! 

Happy new year all! I am under contract to purchase a SFH with a section 8 tenant already in place. First time dealing with section 8. This is my 6th single family rental. This is in Chattanooga. Rent is current about $300/month under market rate. Tenant has been in place for 8+ years. House is 4 bed /2 bath built in 2006. My intentions are to raise rents to market rate within 60-90 days of acquisition. What do I need to be aware of? How much input/control does section 8 have in this? Seller tells me he has no lease (hard to believe with section 8. I imagine the state has a lease on file somewhere). Seller says tenancy is m2m. I have a Chattanooga Housing Authority letter confirming the current rental rate as of Oct 2020. Any advice is welcome and appreciated!

Update - 

It's been while but I wanted to post updated results. I landed my first deal in May 2019 from door knocking. It was a pre-foreclosure. I bought it subject 2 (wasn't even trying to buy sub-2 but that's just how God works) and flipped it and made a net profit of $56K. Part beginners luck but mostly, in my opinion, a blessing from God. I'm still in contact with the sellers to this day. Since then, I've continued door knocking while also acquiring deals from wholesalers and relationships built at my local REIA and a Bill Cook/Pete Fortunato "What Box" seminar in Atlanta.

Between cold calling, Wholesalers, MLS, Relationships, and all the available ways to acquire leads and properties, I still prefer door knocking. In many ways, It's terribly inefficient. However, there is no substitute for face to face human conversation and interaction. Even during COVID-19, it works. I knocked on 7 doors this past Thursday. These were VERY targeted doors with high-equity and other indicators of being strong possibilities. From those 7 doors, I talked to 3 people face to face, received a text message from 1, and a phone call from another in response to my hand written notes left in their front door. I don't expect that I'll buy any of those 7 homes. However, compared to mailers/cold calls/etc, the response rate and contact rate can't be beat.

Door knocking is fun. I enjoy talking with folks, have learned of off-market opportunities in the neighborhood that I wasn't targeting, and 100% believe in it as a method to get into the game. It's time consuming but worth it!

Good luck!

Hi BP! It's been a while since I've posted but I am coming to the well of knowledge and experience hoping for a bit of seasoned experience. 

I'm buying (90% sure) a 3/1 that is 200 yards into the "bad" zip code vs. the "good" zip code" with the intent of BRRRing it. My ARV will be between $70K and $100K. If the appraiser uses only comps in the zip code where this house sits, it will come in about $70K (I predict). If he/she uses some properties from the zip code 200 yards away, the ARV could be $100K fairly easily.

In your experience, will an appraiser exclude any properties from the "good" zip code when I go to refinance? Any thoughts? Suggestions? Experience? 

If the ARV comes in at $70K, I'll have about $5-7K stuck in the deal. If I can get $80K, I'll get all my money back.

I'd love to hear what the lead measures for your marketing campaigns are. Will you share? I'm working on defining the daily/weekly/monthly key measures I want to adopt and hold myself accountable to in order to grow my real-estate business. My goal is to go full-time and step away from the W-2 by the end of 2020 using the BRRRR strategy while flipping/possibly building houses along the way to put food on the table until the rental income is built up enough to take the next step. I secured my first deal door-knocking pre foreclosures during a short season of unemployment. Now, I work a full-time job again which limits my guerrilla marketing time.

I will still knock on doors in the evenings and weekends but I definitely have less time/energy and want to leverage other resources and work smart *and* hard for deal 2, 3, 15, 50 etc.

How many deals do you analyze weekly? How many offers are you making each month? What marketing efforts are you spending time/money on? How do you define success in your marketing efforts? (I'm looking for more granular metrics here, vs. "by the # of deals I get").

Thank you for sharing!

After grinding for 10 weeks to find a deal, I got my first contract today! The best part is that I’m helping the seller avoid foreclosure and the damage it would do to their credit which they want to protect. Thanks to many in this forum for the encouragement. When I posted a thread about door knocking results, many of you commented and your words have fueled me to keep grinding away. The deal still has to close but I wanted to say thanks and encourage others to keep pushing! It’s great to help others and make profit at the same time.

Seller owes 111k. Pre foreclosure. Auction date 5/7. Cure amount 14k. Payoff amount 125k.

I want to do a lease to purchase with the seller with a down payment to cover the cure amount and monthly payments made to the mortgage company to keep the loan current during rehab period. 12 month option to purchase at 125k with all payments and down payment going towards the purchase price.

How can I do this and protect myself from any new liens being placed on the property before I complete the rehab and exercise my option?

Risks? What am I blind to?

Thanks!

Happy Good Friday to all of you. 

Anybody ever financed the purchase of a package of rental properties? I'm looking at a package of 10 SFH's. Here are the #'s. 9 of 10 are occupied. 2 are MTM, 7 are in 12 month leases. Total monthly rents = $6550 for the 9 rented units. $7200 at 100% occupancy. Houses are all built from 1920 - 1930's.

I value the package @ $350,000 with $85,000 needed for immediate cap-ex/repairs at time of turn-over making my all-in price for the package about $435,000. 

I have $100,000 cash I can put down. 

Where would ya'll suggest I go first to explore long-term financing of a package purchase like this? What kind of terms should I expect in a best case/worst case scenario? I've never explored this option. 

Thanks! 

-- Jason

In this week's foreclosure notices, I came across a property being foreclosed upon. However, it appears the owner is already listed as the bank? The bank/owner is Mtglq Investors Lp. The last recorded mortgage is showing to be in the previous owners name. 

It appears this lender already foreclosed on this house in 2017 and has been listed as the owner since. 

Any idea why it's listed in this week's foreclosure notices again? 

What am I missing? Can one department of the bank foreclose on the other? Anybody ever seen this before?