All Forum Posts by: Lynn McGeein

@Tom Server if you have a $200,000 property that you only owe $50,000 on, can’t you refi (or take a new loan out if there is no actual mortgage due to the 401k loan) for $150,000, pay off the 401k loan and credit card debt and still have money left to re-invest? Or if you don’t qualify for that, then sell that property, pay off the debt and invest the remainder after taxes? Either would work to eliminate your debt.

@William Kulow the first time you walk in an abandoned unit where they left the fish tank, you will never allow fish again.

@Anthony Zotto how is it a "deal" if owner has no interest in selling? If you mean they want to sell but want too much because of sentimental value, maybe leave them a LOI with an expiration date and let them think it over. Time to think over a solid offer may change their mind. We constantly get offers on our out of state properties but have no interest in selling, leaving to our kids, so no "deal" to be had until our kids own them. Might be same case with your sellers.

@Toby Mims when our first manager stopped communicating, we interviewed companies with several licensed managers so if one had issues, it didn’t disrupt business. They helped us contact the real estate board and got the old manager to transfer all security deposits and back rents over to them. We sent old manager a formal letter stating she was not performing so we were hiring new management. No matter how good one person is, a single licensed manager, even with assistants, doesn’t work because you’re one family issue away from them keeping your money. The assistants were not allowed to sign checks or disburse funds.

@Noyessie Hubert research your state and local landlord tenant laws. You say it’s a rent controlled area so are there any limits on reasons you can give notice? She likely can turn to legal assistance for tenants rights, especially if she’s taking care of a handicapped son, so be prepared for resistance. And make sure you’re following terms of existing lease. Just make sure you’re following all the proper procedures because she would likely make a very sympathetic figure in court if it came to that. If she can’t afford your market rent, she may not be able to find anything else.

@Jimmy Rojas A family member who failed to file taxes for many years reached out to the IRS and they assisted by providing his total reported annual income for over 7 years to make it easier for him to file back taxes (he couldn’t find his paperwork for most of it). They even provided penalty relief because he contacted them first. He filed years of taxes over a long weekend, and after a few months was ok for conventional loan. He had to pay back taxes, much lower than expected with the penalty forgiveness. There was also something about time for a certificate showing when lender checked on taxes. He did make an appointment and go into the local office, and they were very helpful. He pays on time every year now

@Edgar Perez it doesn't affect FSBO; just can't state commission amount offered to buyer's agent in MLS any more. If I were selling FSBO, I'd still probably price it to expect offers asking at least 2% in either closing costs or buyers agent fees, more if it's a good first-time buyer area. If you won't pay any closing or agent fees, I'd suggest stating that up front so everyone knows what to expect before showing or writing an offer. Saves everyone a lot of time.

@Randy Giovanniello maybe look at joining a team vs individual so you get more experience in hours you’re free, or sign up for showing service like Showami where they pay you to show houses. Find ways to cut expenses. We focused on buying the worst house in the best neighborhood we could afford, fixing it up while living there, sell & repeat. We moved a lot when kids were younger; it was our biggest wealth builder. I learned how to handle minor house projects while husband was working, saved tons off hiring people for minor but labor intensive projects like painting, window screening, changing locks, etc. Libraries, public parks & rec center saved $$$ off more expensive alternatives for whole family. Learning to cook what’s best on sale can save huge on groceries, without sacrificing (hard to find a restaurant that’s better than my husband’s cooking these days). You both have to be on board or it doesn’t work, but if you work together and have a goal, then each step towards that goal feels more rewarding, even if it’s just saving $x more a month towards a future down payment.

@Gere W. Definitely smart researching this before purchasing as it’s more difficult than many believe. There are lenders who will let you pull out 75%-80% or so, possibly based on rents vs your own income if you don’t qualify that way, but their rates and fees will typically be higher than conventional loan products, and you may need rental history to go that route. So find out actual details about requirements, loan limits, rates and fees first from a lender who actually offers it because it’s not worth it if you can’t find a property that still cash flows well after you take that loan out.

@Armando Carrera research and develop your own typical tenant qualifications so you don’t accidentally violate fair housing, landlord/tenant or local laws on occupancy limits based on bedroom quantity/size required for kids, number of unrelated persons in one house, etc. We require any tenant 18 or older to qualify for whole rent on their own unless they are a legal dependent (spouse, college student, dependent parent, etc) of applicant, even then must pass criminal background check. If you treat all applicants as equally as possible and research fair housing, local landlord/tenant laws, and required state/local disclosures, you’ll have less chance of accidentally causing yourself problems.