All Forum Posts by: Keith Jablonowski

If he is really trying and eventually pays in full every month and it is truly a timing issue with him getting paid you could consider changing the due date on his lease or accepting multiple payments throughout the month.   

But if he is just being difficult and he owes anything more than 30 days then don't mess around.  Serve the proper pay or quit notice for your state and if he doesn't pay start the eviction process.

But you need to enforce the late fees regardless.   You can give a 1 time get out of jail free card but after that if rent is due on the 1st and late on the 5th, then on the 6th the late fee get's added, do not budge on this.  If you do he knows he can work you.

NACHA is the best option if you have a PM software that supports it.    You can output a file of all payments from your software and upload to your bank.  It's faster, done all in one and cheaper than ACH.  Worth looking into. 

I wouldn't overcomplicate things. One account with three different payment methods is enough to know which LLC to charge each expense to.

Brian Krause with Castle Law  https://www.castlelaw.com/brian-krause-2

Justin Abdilla https://thechicagolandlawyer.com/

Has the water heater been drained of sediment recently?   

Are a lot of people in it for themselves, and will give you advice that will benefit them, of course, that is human nature?

Does that mean that buying an investment property is not a fundamentally sounds investment, absolutely not. 

You need to buy the right property. If you think you can look at 5 properties on the MLS and find a "good" investment, you are delusioned. The investors I know finding properties on the MLS are making 30+ offers a week, embarassing offers, in hopes of finding 1 or 2 properties a month.

Others are door knocking, cold calling, spending money on mailers to find off market properties.  

It is definitely not "passive", but it is still a great investment vehicle.   If you can't find a property that cash flows with real underwriting numbers, 8-10% vacancy, 8-10% property managment (whether you do it yourself or hire someone, you still need to account for that time/expense) then don't buy it.  

In 20 years, look back at these agents, lenders, etc that didn't buy rental properties themselves and I guarantee they will be kicking themselves for not doing so.    

I'm a property manager now so it does benefit me when someone buys an investment property and hires us, but I have never changed my tune on telling someone to buy the right rental properties, did that way before when I was just another investor.  

You got it covered in a nutshell.   The operator is taking all of the risk in purchasing and rehabbing the property, handing it off to you fully rented and hopefully in good condition where there are little to no maintenance expenses at the beginning.  You are giving up most of the equity for taking no risk and doing no work. 

You are hopefully getting good cash flow, appreciation, mortgage paydown and tax benefits. If you are new, working a full time W2 and want to get started in REI then these can be a good way to do it. You need to vet the operator, but also do your own due diligence. If they are not good at property and asset management your "investment" could become a money pit with vacancy and repair expenses.

Make sure the ARV, rental rates, taxes, etc are what they are claimed to be. I would also advise doing your own inspection of the property to make sure that everything that they say is being done is actually completed and to code and that there shouldn't be any surprise maintenance costs at the beginning.

Numbers are very specific to the market you are looking at.  

Anyone can sue someone for any reason or no reason at all.   There is nothing illegal about Subject To, Seller financing, etc in general.    Would be curious to know what the exact details of this lawsuit are?

Based on the lack of any information outside the number of units and downpayment I would have to say you are completely under thinking this deal....

Regardless of SFH or Small multi-family (under 8 units) deals that come onto the MLS are going to have tons of competition right now and the price will show it. You need to find off market deals. For small multi-family one method is to find tired old landlords. Drive around look for For Rent signs and unkept buildings and call the owner. If the number on the sign is the owner, bingo, you probably have a tired landlord.

Larger multifamily will not have the same retail markup, but even those right now have so much competition that most are not selling at a PP that is justifiable to an actual investor.    There are properties to be had but they are not easy to find.  

Also if you are able to find an owner that will seller finance you can get a rate lower than the retail lending rate and make the higher prices easier to underwrite and make money on.