All Forum Posts by: Lori Williams

I can't even imagine a landlord that would knowingly rent a 2 bdrm to 8 ppl, that's nuts. 

Their best bet is to find some place to live ASAP. And they should consult an atty, but I would say stop paying the rent at this point, because they aren't going to get a deposit back from this landlord. If they paid a deposit, let it cover the last month. And they need to leave the house as clean as possible  and take pictures. I know that's not the answer you wanted to hear, but what it would cost them to take this to court for a case they may or may not win, isn't worth it. 

I read the article about it, and supposedly it's to stop investors from buying up properties and pushing the prices up and not leaving them available to primary home buyers.

Another politician tried to set the record straight and said it was about supply, and that they're simply weren't enough houses, because they weren't building enough houses.

But in truth, if a flipper buys a house and rehabs it and sells it at market prices, primary home buyers are going to be able to buy it, and it's going to be rehabbed. And I know from experience most people do not want to buy a house that needs a lot of work, they want to buy a house that is moved in ready and they are willing to pay more to have that

I think if we looked a little deeper the truth would be that California is just looking for another way to increase their tax base. There are a lot of ways for them to limit the housing shortage in California and one of them is to not be a sanctuary City, to be honest. That just drives more people into the area, which makes less housing available, which increases the prices because there's a shortage.

But even if there were enough houses, they would still be trying to find some way to get more tax revenue.

The problem with this particular bill is it doesn't just impact investors, it's anybody who doesn't hold a house for at least 3 years. So that means if you buy your house and after a year and a half you get transferred to another state, there's still going to love you that tax again to you even though you were a primary homeowner and owner occupant. It's just another punishing tax by this state

Those definitely seem like high rates for those credit scores on a dscr loan.

you should be able to get in the 4.5 to 5% range I would think pretty easily, especially if you use the person with the 800 score to guarantee the loan

A seller doesn't have the right to choose the rents for the buyer. The seller is going to sell for a price that will basically force the buyer to raise rents. 15% is not enough to maintain the property, allow for tax and insurance increases, and make a profit

Really the best you could do is tell her that you need to raise rent because of the cost, but that you will give each tenant up to 6 months to find a new place to live, or they can choose to pay the higher rent and remain there. 6 months is really generous, gives the tenants plenty of time to find something else, but doesn't squeeze you into a position where the investment could end up costing you a lot of money. Actually 3 months would be fair but 6 months makes you look really really generous.

Called A lender today on a property that's been difficult to get rehab financing for, basically because I'm halfway through with the rehab and just need a little more to finish it.

This particular lender had a $200,000 minimum loan, which this is not a $200,000 property. And he said to me, " You need a private lender in your town."

I agreed with him and told him that private lenders in my town have proven a little difficult to find.

And then he said, "Oh, just do a Google search and you'll get a whole list of them!"

I did not laugh until I hung up. But it wasn't really funny that the guy who would theoretically be handling my loan knows this little about how's stuff works when it comes to financing investment properties. Or that a private lender is not the same as a basically hard money lending company, which is what his company is.

Of course I did not Google. Mainly because private lenders don't actually put their name on the Internet and advertise.

Back to the phones...

With all the rehab I've been doing, I would pay off rehab debt and save myself a ton of money in interest. It would be multiplied bc it would make more lines of credit available to do more work faster and that progression would easily double the 20k.

I don't think it's your responsibility to pay for his fuel. 

I am not up on it, but would forced air electric heaters be cheaper to run? Could recommend that to him.

An electric heat pump? If the electric heat pump is affordable and cheaper for him (substantially), maybe make a deal with him for him to pay 100.00 more per month for rent, and you get the electric heat pump, which will save him substantially more than the 100.00/mo.

Not sure of his income - maybe he can get some help with his heating bill.

That's all I've got. But paying their utilities when the price is nothing you have control over probably isn't a good idea. We are all getting hit with increased energy costs. 

And in conclusion, winter is almost over. 

Hi Frankie.

1. I don't know of any hard money lender that will let you occupy the property as your residence.

2. Not sure what you're meaning with your financing strategy. You can qualify for a hard money loan to purchase and rehab. You'll need probably 10-20% down plus lender fees, closing costs and insurance/tax escrow and maybe some reserves. The loan takes about 30-45 days to close as long as you get them what they need timely. In 4-6 months (usually, depending on lender you want for your long term loan), your rehab loan will be seasoned, so that when you're done with your rehab and you have it rented, you can refinance it into a longer term loan at a lower interest rate.

Hope that helps :)

I really didn't know anything except the kind of landlord I did not want to be and the kind of tenants I did not want to rent to. I also knew what kind of houses I liked. Beyond that, I knew nothing. I learned as I went, made a lot of mistakes along the way, finally figured it out.

I wish I had known all the resources available. I wish I had known the BRRRR strategy before being 4 properties into the game. I wish I had known more about hard money so a shifty broker couldn't take advantage of me not understanding. I wish I had networked at least a little instead of being so involved in my work that I didn't have time for anything else.

Just know the basics of the strategy you want to employ and start talking to people who do what you want to do.  Learn the basics of lending. Don't believe anyone who tries to convince you you can come out of the gate and fund all your purchases and rehabs with "OPM" (unless you have a family member or friend who is just dying to loan or gift you all the money you need). Never let yourself be so anxious to get started that you jump into a ANY deal just to have a deal - make sure it's a solid deal. It's better to go slow so you don't get overwhelmed, and wait until you have your process down to go guns blazing into the market. 

Good luck!

I think if a landlord (and that's who it looks like is charging them that renewal fee) wanted to charge me 200.00 to renew my lease, I'd not be cool with it. Especially if that 200.00 renewal was on top of an increase in the rent. What's the purpose of that fee? It would have to make some sense before I would be OK with it, as a tenant or a landlord.