All Forum Posts by: Kate Schaefer

It definitely seems that being threatened with lawsuits comes with the territory!

We are offering cash for keys because he is an elderly veteran and has very little money, so we want to do the right thing and make it somewhat easier for him to get out of the apartment he has been in for over a decade. It will also make the process quicker/easier for us because we won't have to go through the courts.

Our terms have not changed and we've been pretty straightforward about things, so it seems like we are on the right track. I was just curious about what timeframe would be reasonable to reach out to him and ask about coordinating his move-out date (which has already been set, we'll just need to meet him and give him the cash).

Thanks for weighing in!

Hello BP!

My partner and I closed on a duplex at the end of April. We knew we were inheriting a tenant when we purchased it. We won't be able to start work on the property until he is out because he has the only basement access in his unit. We provided him a 30-day notice to vacate (just in case we needed to lean on the formal eviction process) and also offered him a cash-for-keys agreement. He ended up signing it, but since then, his family has contacted me, upset that he signed it. He is elderly and the unit is not in safe living conditions, so we know he needs to leave, but his family is obviously stressed about the timeline. They have also threatened to sue. 

My question is — according to the cash-for-keys agreement, he is supposed to move out in 2 weeks. We have not heard anything from him, letting us know what his plan is on the day of the move — such as, what time we should meet him for the final walkthrough. We don't want to seem pushy, but at what point do you think it's ok to reach back out to him and ask what his plan is on the move-out day?

Also, any advice on managing the relationship with his family would be helpful. They are not his legal guardians, but they're clearly involved to some degree because of his age.

Thanks as always!

Kate Schaefer

Hello! We just purchased a duplex that came with a tenant. He is elderly and would like to move into an assisted living facility. He is also a veteran. The unit is not in good condition and we need him out so that we can renovate. Does anyone have experience with getting someone into an inexpensive (or free) assisted living facility in Philadelphia? We don't want to displace an elderly person, but we are also trying to get to work on the house ASAP. 

We recently had two applicants go through the screening process for a rental unit of ours. We realized that one would soon be unemployed due to their relocation and the other was starting grad school (also unlikely that they'll be making a meaningful amount of money). We asked for cosigners and sent them through the TransUnion screening tool. Rather than return a credit score, it returns a Resident Score. Seemingly, both co-signers are qualified based on the Resident Score, however, one of them has quite a few delinquent payments and I would assume a bad credit score.

Does anyone have experience with the Resident Score that TransUnion provides? Is it reliable?

Any advice/assistance is appreciated!

Hi everyone. 

My partner and I recently moved to the Philly/South Jersey area to start our real estate investing journey. We have a finished duplex in West Philly, but now we are targeting our next deal in South Jersey and need to build out a network for this deal and future deals in the area. Looking for General Contractors who have experience in the rental space, but we're not entirely sure where to start, as were looking for a good contractor, but also someone who is available to start the project as were doing short term financing on the rehab portion. 

Is there a rule of thumb for starting your team? Additionally, timing wise, I would assume it would be best for me to get a GC locked in before going to closing on this property as were not looking to waste any time on the project.

The deal were doing is a fix and flip that will be closed under a LLC - the condition wont qualify for conventional lending. Additionally, we just did a FHA on a higher cost multi fam, so we cannot explore that route again for both timeline issues, but also our DTI won't support that after just buying a couple of months ago. I work for two lenders, one HML and one conventional (which i got the fha through). Ofc my HML employer doesn't lend in NJ so I don't get the 25% ltv, 10.5% rate option atm.

Yes, i see you work in the space so we would love to chat - my partner actually works for a HML and a conventional lender however, they dont lend in NJ where we are looking at our next deal. I think the most she was able to find with our experience is 75% LTV, 10.5% rate with 2 points for origination. That seems to be the standard at our current level, or at least we didn't find anything better than that for the deal.

Hey Everyone - I hope all is well. 

My partner and I recently completed some light rehab on a duplex that we are holding in Philadelphia. For the first deal we did a FHA but came out of pocket for all rehab. We found that's not super scalable and are now looking to get into our first BRRRR (without coming out of pocket with the funds).

I was hoping someone could offer some advise or recommendations on the lending aspect. This is our first official flip so many hard money lender don't have great terms or won't want to lend to us all together since we only have rental experience. Would be great if someone could give an idea of what theyve done with a private money lender or local hard money lender they had success with when they started out. Would be awesome to get lender names in philly/south jersey area to connect with if at all possible.

Thanks everyone!