All Forum Posts by: Joe Trainor

Hey all,

I put in a few key words and came up empty in the FilePlace.  Does anyone have any forms or verbiage they care to share on what you put in your leases in regards to water heaters?  I.e. temp settings maintenance requirements if any etc..  I don't plan to allow them to mess with it at all but think I should have some type of info listed in the lease.  Any help is greatly appreciated!

Thanks for the info!

What coverage amounts do you require your tenants to carry around Houston Texas? 3b 2.5 bath 2 car garage townhome. Thanks!

Varies greatly street by street in those neighborhoods. Try researching in reverse. Most new construction or MAJOR renovation homes that have sold in those areas have two recent sales in the last 3 months to a year. A lot of the time flippers or builders/developers, purchased at what was "lot value" and then do what they do and once completed relist it. A google search with a properties address that you know has sold, or is active may show older MLS listings. You may even find listings that an older listing actually say selling at lot value.

 Awesome suggestions and information!  Especially the latter.  I don't really expect to use what I through out but definitely wanted some insightful input on it. Thanks

Thanks for the input!  I probably didn't hammer on the word "stable" enough in the thread, but I was trying to build the discussion around that.

I don't know if throwing the lump sum (or even dollar cost averaging in the short term) in todays market is my definition of stability but to each their own.  Say I did though, and the market tanks in the beginning and I continue to withdrawal at 5%.  Does that greatly reduce the chance that the money doesn't last 30 years, probably.  Even the principal is subject to loss. I know, if its and butts were candy and nuts.......

Is hard money stable?  It can be very profitable but there is a reason hard money gets higher returns.  Rates correlate with risk. You had mentioned hard money rates above.

The question is not stemming from a position of amassing more wealth (even though the ROI from interest would grow the initial investment). I hear a lot of people saying they want to grow grow grow but have no exit strategies in place that don't include some serious assumptions about where the market will be when it comes time to exit. If creating more wealth is the main goal then the short answer to the seller financing question should be, lend high and take a larger down payment.

This is just a thought relating to stable, pretty passive, lower risk, long term income while still growing the initial investment on one property.  Please keep in mind there would be other properties to exit and grow wealth with by using the ways you described above.  I guess the best way to describe this option would be, am I creating a hedge from market uncertainty by doing this with a property or two while still building a portfolio? 

Hey All,

I wanted to explore an exit strategy some of you have probably debunked, can vouch for or have at least thought of. This exit strategy stems more from a mindset of getting a consistent return over a long period of time.  Let's assume this option would be applied to just 1 property out of a smaller portfolio of 10 properties.        

Traditionally I have read seller financing is geared towards buyers that may have exhausted the amount of loans they can get, maybe there is a lack of credit history or maybe they have a less than desirable credit history etc... 

From the perspective of the seller, with interest rates on the rise and no telling where they will rise and fall to over the next 30 years, has anyone entertained or actually provided seller financing options to QUALIFIED buyers at current market rates?  Everything I've read only talks about offering at higher rates and a higher asking price.  What if I wanted to find the best buyer with the least amount of risk for default while getting a long term fair return. 

My mindset is, with rising rates, does a collateral backed guarantee of 5-6% sound so bad over the next 30 years on one investment (Assuming rates don't drop back below that and the buyer refinances out)?  Yes, you would probably lose the ability to get a higher asking price but could still dictate down payment amounts.  Yes, you could make more income by going the traditional route but it could be marginal if they refinance out of it quickly and you have a higher risk of default.  I understand a highly qualified buyer can still default and can still leave the house a wreck when exiting but there is definitely a lower risk of that happening.  I am sure everyone's current financial position will play a role on how they respond.  Lets assume the seller would easily live another thirty years and have other properties that he/she would NOT do this on.

Poke some holes in it, I'm just thinking out loud.