All Forum Posts by: Account Closed

Hi, I searched for parking lot sales and did not come up with much other than mobile home parks and rv parks. Is anyone privy to this topic anywhere  on BP?

Thanks for any info.

203k loans are only if you are going to live in the property, so as you stated above stay with the duplex or more units.

@DanSieg,@RonnieWilson

 Also, in my talking to the Bank manager I learned he is an investor himself with 8 rentals.

I let him know he can partner with me on future deals. Last week I threw him a bone on a nice property for $30k that had been on the market for $137k. I call this "How to get in bed with your banker". It's about building the right relationships with the proper individuals.

This equals a team. The professional team and credibility package needed to be aggressive.

True for a loan application. In this case its simply a letter of pre-approval. I walked into my bank and had a letter for 90% LPP in my hands in 20 minutes with the bank manager telling me he looks forward to more business and creating a relationship. This was only a letter and not an application for a mortgage. I deal with a small independent bank.

@DanSieg

Hi Dan,

First, I would ask if you have a personal banking relationship? If you do good, if not this is very important part of your finances and you need to have a seasoned checking account open. You also need to have your credit files good(the bank may not pull your credit just to get a letter, but will after you actually apply for a loan). If you have derogative credit you need to work on clearing this. Make 2015 the year to get your credit good. Never charge your CC beyond 30-50% of the credit limit. 

So, assuming you do have this good already.

Give the banks mortgage department a call, introduce yourself. Let them know you are a investor in the area seeking investor loans.. and ask them what they will need from you before you visit the loan department. 

Then go to your bank and talk to the loan manager and let them get to know you and build some rapport( talk about the real estate markets and try not to engage in general unrelated small talk). They will want a PFS so have your assets and liabilities on paper before hand.  Reiterate you are seeking an investor loan pre-qualification and wish to establish a lender relationship. It very well could be they will type you a letter while you wait. Have your paper work with you and forms you use. Let them see you with your folders and paper work(property inspections, comps,etc.)  Don't go in there and try to answer the questions pulling this info off of the top of your head. You will look unprepared.

  Don't tell the loan officer you are wholesaling. Answer any questions directly and short.  Lastly, do not lie. Hopefully you get a letter to present to the seller.

Think like an investor always.

Illinois is a tenant friendly state.

The above doesn't really answer your Question.  I would use pink or red paper for your 5 days and tape it to the front door and take a picture of it posted. This should serve as proof that you gave a notice. I would also reccomend (in addition) you mailing a copy to them to sign for.

A 5-day notice in Illinois is not much more than a "informal" but necessary notice to the tenant telling them to pay up within 5 days or on day 6 we will be turning you over to the lawyers for eviction proceedings. So, if your tenant shows on day 7 and says I can pay you half of the rent now and you except it, say they default again, on this promise to pay the balance you have reset the process back to square 1 again.

 Ben,

Calling the kettle black. There is a "be" in front of cause. Unless your refering to him as "cuz".

You need to base your due diligence on the actuals from the owner and you need to see a copy of each lease from each current tenant. If you don't know the shape of the building how can you determine a property value? You don't buy the building first and the find out if it or they need new roofs and HVAC, etc. Are you going to manage this from 500 miles away? What if a tenant decides to stop paying rent? Are you ok to drive all that way to the property frequently. After all the back and forth you will probably burn through the small cash flow. Is the building wired to be individually metered? If not how much and is the city codes going to allow this? If so, how much for each permit x20=$$.

This is obviously a c-d property. I think $35,750 per door is way to much, especially if there is alot of defered maint. Is it a war zone? Not trying to rain on your parade.