All Forum Posts by: J. Martin

Lots of good suggestions.

Or you can have them go on auto-pay with the company if they have the money..

1. M2M is common after first lease period in my area. I wouldn't force otherwise in this case, but I might change the rent structure so there's a daily late fee. Then you will really know how busy he is to pay rent, because there will be a marginal cost to it. Nothing wrong with working with him. But it has to be worth your time / PITA.

2. If he's too busy and only "plans" on staying there short-term, he'll probably pay more in rent, especially if it is below market.

3. You don't need to give it to him now. When he gives you 30 day notice, he can not pay the last month. But if you give it to him now, then he doesn't pay the last month, you have no deposit..

Good luck!

If you sold one, you could probably do 30yr fixed mortgages on all of them, then buy some more.. I really like 30yr loans at this rate.. The alternative is contacting some local banks, and get a single portfolio loan with all the properties as collateral. A lot of banks are doing 5-10yr fixed rates, then go variable, with 15yr maturities. I have seen many of these. But it's rare to see banks giving 15+ year fixed rate loans if they can't sell them with a Fannie/Freddie guarantee.

Good luck!

I got an FHA loan on a 4plex on my first deal due to my lack of capital, and it worked out great! Others use hard money/private lenders, but requires a lot more work/finding a great deal, and a lot of time they are looking for experience. FHA & conventional don't require experience. But conventional requires quite a bit of cash! Homepath.com also has properties you can buy with 5% down owner-occupied or 15% non-owner occupied on single family homes. More on 2-4 units I think.

Good luck!

Of course it's legal to purchase someone's share of a property and finance it with someone's private money. Depending on the ownership type, that will dictate what you need to do. Does the lender want a lien on the property? It will have to be behind the other loan. (2nd, if a loan already exists.)

Do your relatives own it in a partnership? Or as "tenants in common"? (Divided or undivided?)

Also, just fyi, you may have to be able to qualify yourself for the refi on the whole property later unless your relative can also help qualify and is willing to sign. She would probably also have to consent to the lien on the property in an undivided interest. Nice friend! Good luck!

I agree with @Tim Hoffman . Talk to some local community banks about their guidelines before getting more appraisals.. Also, you can try pentagon federal credit union. They bank all 50 states and have HELOCS up to 75% on non-owner occ I believe. Not sure about the title guidelines for them. But that would at least give you the time to do a "term" cash-out refi. I think 75% cash-out is on the optimistic side going in..

assuming the house is left clean/ready to rent after 2 months! THey still have the responsibility to hold up their end, especially when you are giving them the benefit of the doubt. I also had some tenants who were in a different exit situation like this, and I made sure they agreed to have it clean and ready to show before they move out so I could have it rented before they left.. Had 1 day vacancy..

In this case, you suspect, but aren't sure. So unless you have some strong evidence, I would just give them the benefit of the doubt since it's military related.. tough situation to be in.. for both of you I'm sure.

Sometimes you're better off doing what makes sense, rather than what can technically tried to be done from a legal perspective.. IMHO.

I can never underestimate the importance of having reserves, especially at the beginning/backend of a transaction. You may consider cutting back on prepaying the other debt until you can build enough reserves if you're anxious to get started..

I agree with Dave. I don't think you're going to get much of a discount on something that just needs updating, unless you get it off the MLS.

You need to find someone who is very motivated to sell (I assume you can pay cash?). Remember also that there are a lot of expenses associated with buying and selling, so if the margin is thin, a lot of it can get eaten up in the transaction costs..

Consider getting in touch with some local wholesalers to bring you some off-market flips if that makes sens for the discount from the MLS and lack of competition..