All Forum Posts by: Luc M.

I understand that some Florida counties may not allow sub accounts this year. That would be much better for the individual investor!

The fact that banks are still requiring only 3.5% down in some cases also shows that the consumers aren't the only ones that didn't learn a lesson. Of course, these 3.5% down loans are probably getting FHA insurance or are getting sold to FNM, FRE and we taxpayers are still taking the risk.

I am going under contract on my first rental property - a SFR in central Florida. My partner and I got a reference for this managment company and they sent over their contract for us to sign. I was wondering if anyone here can tell me if these general terms are standard/good/bad:

Fee of 10% of gross revenue (seems standard);
Fee of 50% of one month's rent for leasing (seems good);
$25 per month fee for a vacant unit if vacant for more than 30 days (??);
For lease renewals, a fee of 30% of first month rent due;
For lost of discounted rent, 50% of late fee received from tenants'
100% of all NSF and or returned checks (paid by tenant);
$100 eviction notice fee;
If lease cancelled within 6 months; mgr gets 50% of one months rent;
Other minor fees (such as having a photo CD of the property, web based accounting fee, etc) all less than $25 per pop

And does anyone have any good references for management companies in the greater Central Florida area?

Thanks!

Alyn,

Try the boroughs of NYC. I know a guy that owns a software company for RE managers. He claims his clients are buying properties in the 4.5x - 6x annual rents range. I think a lot of them are foreclosures and they probably aren't in the best neighborhoods though. Keep looking.

Josh,

There are third party browsers you can load onto your iPad.

Thanks for the responses guys. James, yes, I understand all about our fractional reserve banking system. I have a b.s. and m.b.a. in finance along with a CFA designation. Considering that some banks have been able to build up their reserves (LLRs) over the last year+, I would think that these foreclosures would be working their way through the system a little faster now. Maybe all the robosigning scandals has slowed it down recently, who knows?

Speaking of banks, I read a story recently where they were thinking of chargine 15bps for deposits to cover their FDIC insurance. What a ridiculous concept. I think we should just get rid of FDIC insurance so the banks wouldn't have an incentive to make so many stupid loans. If my bank does that, my money is going to get pulled from it mighty fast.

I long for the days of true MTM for banks and no silliness like FASB 157 (responsible for 29 cents of JPM profit this last quarter).

So I just got off the phone with a prominent broker in the Orlando market. She mentioned that there is a lack of SFH inventory right now because the banks are holding back on foreclosures. She also mentioned that when they do come on-line, she gets 2-15 offers the next day.

Can anyone confirm/deny what she just told me? Thanks.

Mark,

So ROC is offering 13%+/- unlevered returns? Are turnover and vacancies big issues?

Thanks,
Luc

Is your money locked up? Did you has for a redemption and they aren't giving you your money back or did you just ask them a question or two and they haven't responded?

How safe can a hard money lender feel with a no-money down type of financing? I mean, if someone was going to rehab a property, that is one thing, as it may be improved enough to get $0 down finaning (although I still wouldn't lend like that). But, if no improvements are being made, I would argue that the purchase transaction has now impacted the future price of the home making the LTV close to 100% if no equity is being used.