All Forum Posts by: Jon Kelly

Hey @Mani Lubana, I just sent you a PM 

@Roy Massey what option do you have? Most lenders have some type of pre-payment penalty. The lender I work for offers a 5-year, 3-year and 1-year pre-pay. Some people are moving to the 1-year pre-pay because it offers more flexibility even though it's more expensive. 

@Michael Sharpe you need to run the numbers BEFORE and AFTER to see if it's a deal that makes sense. How much money will you need to put in to increase rents and how long will it take to get there? 

@Michael Sharpe why would you be hesitant? Under market rents is one of the key things some investors look for these days. You should see this as an opportunity to add value. The purchase price should reflect the existing rents and not the market rents... 

@John S. as a finance guy just keep it simple. Can you achieve a great ROI than the ~8% interest you're paying? I hope so. Put 25% down and finance the remainder. You'll have greater tax benefits and higher change of appreciation due to the size and quality of asset(s) you'll be purchasing.

Please ignore all of the messages here telling you to invest passively in syndications, invest in vacation rentals, "be the bank", etc. You have a great opportunity ahead of you and most people wish they were in your shoes. Take some risk. Don't play scared. 

Start now

@Dominic Bailey you should've asked this question before signing up for one

@David Jones awesome post. Decision making is so much easier when you have the right information. Unfortunately, I'm not aware of any studies on this topic. If you happen to create one, please let us know :) 

Annual or MTM leases usually is market dependent. I prefer MTM in some of my "C" class areas because it's easier to move on from a tenant. However, in "B" or "A" class areas I prefer an annual lease because I want the security of 12+ months of rent OR a lease break fee.

@Scott Mac Where are the people going to go? Seems like there will be a higher demand for rentals than ever... 

@Monica Soyemi reach out to Parnell Jackson. He's based in Chicago and been in the business for a long time. Due to BP restrictions I can't attached his email address, but here is his website: https://pdcfinancial.com/