All Forum Posts by: Marcos Carbi

 Hi Patricia, thank you very much for your input. How do you think I should go about recovering the $3,600 owed? 

I've printed out a Notice to Quit and will post it on their door for legal protection. However, I'm afraid to scare them off and never getting a chance at those $3,600. What do you think I should do?

Hi everyone,

I’ve been a landlord for a while now, but this is the first time I’ve found myself in a tough situation like this, and I’d appreciate some advice.

I have tenants who have been with me for 2 1/2 years. They’re a family with two kids and have generally been great tenants—almost always paying on time, except maybe once or twice, but they’ve always caught up. Unfortunately, the husband lost his job about 8 months ago and, from what I'm told, hasn’t been able to secure another one—not even in retail or fast food. I'm having a hard time believing this. Not even Walmart or McDonald's?

As of now, they owe me:

• Half of November’s rent
• All of December’s rent
• All of January’s rent

That’s about $5,500 total, which is a lot of money to lose. Given their track record, I’ve been lenient because I feel for them and understand how hard it must be for their family (I also have their $1,900 deposit). I offered to temporarily lower their rent until they’re back on their feet. But after nearly three months with no full payment, I feel like I need to take action.

I recently told the wife (who I know works hard to support the family):

I feel I need to be a little more firm so I told them I need November's rent by tonight, and asked for 10 proofs of job applications. My idea is to set up a ~$450/week payment plan for the remaining balance, and to get them back into the rhythm of paying with a deadline. I will continue to ask for proof of job applications and rejections. If they don't pay these next weeks they're out. 

I know some landlords might say I’ve already been too lenient, but I feel for this family and don’t want to displace them. At the same time, this is a business, and three months behind on rent is a serious issue.

What would you do in this situation? Any advice or suggestions would be greatly appreciated.

Thanks in advance!

– Marcos

Hey guys, I found an excellent off-market deal in an area I'm very experienced with. I made an extensive pro forma and the numbers work out really well, it's an incredible opportunity. Unfortunately, I don't have the capital for it so I've been looking for an investor to go in on it with me (and I think I found him/her). How should I structure the deal in terms of my share: equity, acquisition fee, refi fee, disposition fee, asset management fee, or anything else? 

Pro-forma numbers with 6% acquisition fee, 0.5% yearly asset management fee, and 6% disposition fee:

   $5.7M - 10 year hold

Cash Needed: $2.1M

Int Rate: 8.25% | Re-fi in 3 years at 5%

Profit: $4.08M

ROI: 191%

IRR: 15.54%

Stabilized CoC: 13%

* Pro-froma is fairly conservative *

Note: We'd be pulling out about 50% of initial equity/investment at the refi because of the instant equity from the low purchase price and the forced appreciation. 

Not only did it take me long to find and analyze, but the investor would be fully hands off and I'd be doing all the work from start to finish (LLC filings, legal paperwork, rehabs, managing the PM and asset itself, etc.)

I have no equity in my pro-forma, but I think I want some because it is such an amazing deal and I want to own part of it. 

How would you structure it?

Hey y'all,

I'm listing my unit to rent for the first time and I was wondering if it's okay to put my Innago tenant application form link on the listing. I feel like it would make things easier as people can go directly to the link and apply. 

Thoughts? Does anyone advise against this?

I appreciate it!

@John Mocker They have the option to go up to $1M. Is $300K not enough? Do you suggest I do $500K or $1M? 

@John Mocker Perfect, my agent recommended this as well but I wanted to double-check. Thank you!!

Additionally, the policy is under my LLC's name with my mom and I listed as additionally insured.

@Account Closed

Hi Barak and John, thank you for your contribution. Sorry, the policy I have right now is a DP-3, it just doesn't have Coverage L - Personal Liability. Therefore it makes sense to get an additional personal liability policy, correct?

Thanks!

Hey guys,

I'm in the process of closing on my second duplex and I honestly don't understand insurance as much as I'd like to. 

My situation: I'm closing on the property under my mom's and my name and then transferring the title into my LLC - I'm doing this to get a better mortgage rate/terms. Since the property will be under my LLC, the insurance company doesn't provide personal liability coverage on the home insurance policy. Therefore, I'm getting an additional personal liability policy for my LLC, with $300K in coverage.

I was wondering if this is the right thing to do, or if I should be doing something else. I did this with my first duplex as well.  

I appreciate your time and help!

 Hey Nicholas, I forgot to update you but it went really well - I'm extremely happy with my first deal!

I bought it for $380K and it appraised for $395K. To my surprise, both hot water heaters and AC units are from 2018, while the roof has 5 more years of life, saving me the entire cap-ex budget I initially acounted for. The tenants have been there for 6 years and have taken really good care of the property. I raised rents by 50% to $1,600 (still a discount to market rent) and both families decided to stay so we signed new 1-year leases. Overall, I couldn't be happier with the investment. 

Thank you and everyone on this forum who pushed me to do it!