All Forum Posts by: John C.

Hi Tim I've only done a few of these (both sides and none of them upside down on payments or mortgage) but if I ended up doing more I'd look at using a 3rd party mortgage payment processing company. I know that doesn't really answer your question but it might check off one of the boxes (you'd know quickly if there was a problem). 

Also definitely close with an attorney and make sure your interest shows up clearly in the public record. I'd certainly not offer any sort of down payment. Does it need work? If so have the seller contribute the funds for repair or give you a few free months to cover that. You want to have as little of your own money in this deal as possible. How much cash flow are you expecting? At this point I'd be looking at CoC (Cash on Cash) return. I wouldn't want to have anything (or very little) invested into this deal up front. Of course there is some equity there. The wrap mortgage should be written up in a way that if he does not make his payments that you will have the right to pay off the seller's lien and take over the property free and clear.

Just some thoughts. I look forward to hearing from other more creative/experienced folks.

24 unit multifamily garden condo apt package. 175k gross, 137k/yr net

This brick-skinned garden apartment condominium multifamily package consists of six quadruplexes/quadraplexes generating gross rents of $175,440.00 per year. Net income after hard costs of $137,650.00 (going up). 14 CAP before reserves. Currently 100% occupied with many long term residents paying below market rents. Value add opportunity. Zoned RM75 Multi-Family. Next to Commercial. About one mile West of the Stone Mountain Village near East Ponce De Leon and Memorial Drive. Across from public transportation, Wal-Mart just built around the corner. Near Kroger and multiple major large employment centers (industrial, retail, etc), Stone Mountain Park, the Stone Mountain Village, Memorial Drive, Mountain Industrial, Highway 29, East Ponce De Leon, and Highway 78.

Can only deal with principals and their direct agents. No daisy chains. No looky-loos. Will send financials and addresses for a drive by once you provide proof that you are ready, willing, and able to close if terms are agreed to. When contract is signed we will require a significant amount of earnest money to be placed with our attorney before physical interior inspections/final due diligence. We may consider owner financing by taking a small second. FSBO at 954k.

Message me with your contact info for more information.

Net operating income after hard costs now at $138,850.14.  Gross rents of $176,280.00. 100% occupied.

Hi guys. House worth about 1.7m is being foreclosed on in Fulton County, Georgia. City of Atlanta. Lender balance about 1m. Contractor has a mechanic's has a lien on the property for @200k. I believe the mechanic's lien was filed properly by a big law firm but is well aware that his lien will be extinguished if the first completes foreclosure. From what I can tell the contractor did the work and the house looks great. Strategy to take control? Any leverage value to buying the mechanic's lien for a discount? Doesn't that lien have right of first refusal to buy out the underlying debt at balance owed or something like that?

Hello Kyle yes Atlanta has a great deal of opportunity and extremely strong fundamentals.

In 13-14 years of being a full time investor and landlord and 30 years+ of managing rental property in some form or fashion in the Metro Atlanta area and suburbs I have never seen such incredible demand and steadily improving tenant quality. I'm sure that living and breathing this market every day is certainly a factor. Knowing what is going on in each neighborhood is critical at this stage. Trying to buy a rental in a retail flip neighborhood is not a good idea unless you are looking long term and don't mind losing cash flow for appreciation. Also attempting to flip a house retail in a rental or warzone neighborhood won't work out very well. Knowing your market (basically street by street) is key to generating the best returns in Atlanta. Appraisals can easily be off by 100k+ within 1/2 mile.

Of course time heals all wounds so as long as values and rents continue to climb even a bad investment can work out in this climate as long as you have the holding power...

Oh and to Ali's post if you have a good 100k-150k house in a good bread and butter 100k-150k neighborhood and are having trouble finding quality tenants I'd suggest taking a closer look at who you have managing your portfolio. My guess is that either your properties are either in a bad area or are not being properly managed.

This brick garden apartment condominium offering consists of six contiguous quadruplexes/quadraplexes generating gross rents of $175,440.00 per year. Net income after hard costs of $137,650.00 (going up for multiple reasons). Average 95% occupancy with many long term residents in very strong rental market. Value add opportunity. Zoned Multi-Family. Next to Commercial. About one mile West of the Stone Mountain Village near East Ponce De Leon and Memorial Drive. Across from public transportation, Wal-Mart just built around the corner. Near Kroger and multiple major large employment centers (industrial, retail, etc), Stone Mountain Park, the Stone Mountain Village, Memorial Drive, Mountain Industrial, Jimmy Carter Boulevard, Highway 29, East Ponce De Leon, and Highway 78/Athens Highway.

Can only deal with principals and their direct agents. Will send addresses and financial information once you provide proof that you are ready, willing, and able to close if terms are agreed to. We may consider owner financing by taking a small second. FSBO at 954k which includes 6% for agents.

PM me to discuss in more detail.

John Clark

A couple of folks rented a condo from me for a year. Lease is up at the end of the month. Both are on social security and they needed their combined income to qualify (3x rent). Both have been phenomenal tenants. Unfortunately they have had a falling out and one wants the other to leave at the end of the lease. They both like the unit and neither one wants to leave. I am stumped. What can/should I do? Legal gotchas?

This is in Dekalb County Georgia. 

TYIA!

John

How long has the tenant been in residence? 

Bedbugs are not like roaches. They don't just magically "appear". If I give a tenant a clean and habitable residence as defined under Georgia law and they introduce bedbugs after they have moved in then it is their responsibility. 

What I have done is have my pest control company come out and evaluate.  If the tenant has been there for a while and just "discovered" bedbugs after bringing in some used furniture that they purchased off of craigslist, etc then I get the tenant to pay. 

Either way take care of it as they will spread to they will spread to other units if the problem is not addressed quickly.

I am working with a real estate attorney who is quite familiar with the legal side so I may not know all of the terminology and play-by-play but I'm not worried about the transaction going smoothly. Just trying to understand the tax implications.

I know nothing about notes. I have the opportunity to buy a non-performing note at a discount. The note was in a pool sold by a portfolio lender to a "loan workout" group at a substantial discount. I know the property owner and am interested in stepping in as the lender. The "loan workout" group has made a verbal commitment to sell the note to me at a discount so it is time for papers to start flying. I understand that I will pay taxes on the interest and spread between what I buy the note for and my final payoff when the property owner sells. Who pays the taxes on the difference between the original value of the note and my final net payoff?

TYIA!