All Forum Posts by: John Hunter

Great points, Nathan! Do you send a letter prior to closing, or do you wait until the sale has gone through? 

Newbie Commercial Landlord Question!

Closing on a commercial property in Illinois later this week with a strong tenant already in place with a lease signed thru 2027. To anyone with experience acquiring properties with existing tenants (who you strongly desire to keep!), how did you inform them of the change in ownership? Is there a legal process that needs followed? Would a simple letter explaining the ownership change suffice? In-person conversation? 

Thanks in advance!

Thank you all for the great responses! After reading these responses in addition to speaking with a couple other local managers for similar properties, I have decided to pass on this tenant. 

In a post-COVID real estate world, the best defense is a good offense! 

Rookie Landlord Question Here!

I have a potential tenant who makes over 4x the monthly rent. Her past landlords have all said she pays on time and has been a great tenant for them. However, she did have a Chapter 7 discharged bankruptcy from June 2018 and a trash credit report. Would you weight the landlord recommendations heavier than the background check? 

Thanks!

Assuming self-management, very confident in $1200/mo rent figure. Been on market for quite a while, pics appear turnkey. Any input? 

John

P.S. - I WANT THAT 1:1 CALL!!!

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*This link comes directly from our calculators, based on information input by the member who posted.

@Nicholas L. Thanks for the input! Yes, sorry...meant that it would easily appraise at $75K. In this scenario then, aside from going the hard money route, would there be any way to avoid financing/refinancing through a bank and paying double closing costs? 

**Disclaimer** - new to real estate investing!

I am looking at purchasing a 3b/1br single family home as a rental property. I believe that I could purchase for around $40,000. After looking at comps in the area on MLS, I am fairly confident that I could sell for $75,000 after a few repairs, fetching a rent around $800/month after renovations.

My question is around deal structure with a local bank: does anyone have experience with receiving financing based off the ARV? For instance, are banks willing to finance based off 65% of ARV (total loan amount in this case would then be $48,750)? In this case, that would completely pay for purchase of property plus $8,750 towards repairs, and leave me with a free $26,250 in equity before cash flowing from tenants. Is this scenario too good to be true?

Obviously, the best way to find out would be to ASK THE BANK, but figured I'd check with the BP community before I began the conversation. Thanks in advance for any input!