All Forum Posts by: Joshua Fulenwider

Option 3 sounds like the way I would go with this lender. You have the added benefit of not paying interest on the HELOC whenever you have it a zero balance.

What other lenders have you talked to?  Are these terms typical for your area?

I'm wondering how other lenders are dealing with issues related to Basel III?  Are you still lending to developers and commercial builders?  What strategies are you implementing in order to make new loans to these types of borrowers?

@Grant Francke I hate to keep saying it but check your local laws.  As the property owner you should have the ability to fix up the property as you see fit.  Which would allow you to charge more in rent.

Besides, if they are complaining about floors that are soft or laminate that is peeling up and they are in their 70's I would be concerned about them tripping and falling.  But referencing what @Rich N. mentions, do not call these repairs.  Call them upgrades.

It depends on what the lease says.  I have heard of it being the landlords responsibility in some cases and the tenants responsibility in others.  With larger strip malls I have typically seen the landlord pay to have a maintenance crew come through every so often.  On smaller ones I've seen each tenant being responsible for their share.  

Not my strongest subject but I would refer you back to the lease.

It is possible but some banks and credit unions may take issue with the fact that it turns into a rental after they fund the note.  You may want to feel out a couple of places in your area to see what their feelings are before you approach the institution you would prefer to do business with.

I have heard of this structure before so it is possible.  Make sure you structure it correctly and you may want to consult with potential investors in your area as to how they would prefer it structured. Is $1,500 a normal wholesale fee in your area?  It seems a little low but I don't know your market.  Don't shortchange yourself.

Check your lease.  Are they currently month-to-month?  Or are they locked in longer than that?  If they are month-to-month check and see how much notice you have to give them to vacate or on a rent increase.

A strategy you could use would be to notify them of when you are planning on doing the renovation and notify them that after the renovation the rent will increase to the new amount.  At that point you are providing a better product and you have more of a justification to raise the rents.  Depending on local lays you may have to give them the first option at renting the place at the new rental rate.  They may also save you the headache and decide it is better to go elsewhere.

Whatever you do, check your lease and your local laws first to make sure you keep yourself out of trouble by giving adequate notice.

Yes.  A good real estate agent will add an inspection clause to your contract giving you the right to inspect the entire property including inside occupied units.  The seller may not give you access until you are under contract so as not to spook their tenants.  However, it is fairly standard to gain access for inspections once you are headed to the closing table.

www.reiguard.com

I've been happy with them.  

I have not attended either.  But I did attend Anthony Chara's multifamily class and signed up for his mentor program and it has been very worthwhile.  You can find his classes www.successclass.com