All Forum Posts by: John Speener

I'm not sure what your best option is there. Sounds like you are already renting to him. On my rental properties I only rent to older people with no pets and no kids. I know that sounds like I don't like kids or pets, but that couldn't be further from the truth. In fact I have both young kids and big dogs my self. The reason I do this is because I find that older people tend to take care of the property a lot better. In fact when switching tenets usually I have to do little to no work to the property to get it ready for the next tenets.

You can find list of liquid capital investors that are going to charge anywhere from 6% to 12% on what's borrowed. I would put together a deal with another lender and give your friend the opportunity to beat it. Remember you have all the leverage, you have the property and the deal. He just has the cash, but fortunately he is not the only one with cash. Remember it's not like he is getting that kind of return from keeping it in his bank. If you want to get this under control show him the other competitive offers.

So I am a new investor that doesn't have problems finding great deals. The question that I need help with is how do you determine what is a solid offer on their house that they are about to lose? So far what I have come up with is to work backwards from what their house is worth. For instance if their house is $600,000 and you know that they still owe $90,000 on the mortgage, another $50,000 in taxes, it needs $150,000 in repairs, plus $16,000 in real estate fees, and a few grand to carry it for 4 to 6 month waiting for it to sale. So what I'm thinking is to back out those prices for the value of the house then you are left with profit. How much of that profit should be offered to the home owner? Is there a percentage that works for everyone? Or maybe a great program that could calculate what the offer should be? I would very much appreciate any information or help that I can get in this area.