All Forum Posts by: Marc Winter

@Wesley W. my experience is that drop ceilings in bathrooms are not the best idea.  I'd remove the drop ceiling and install proper drywall (maybe greenboard).

It's just a cleaner, modern look, and no moisture will build up behind it, unlike with the existing drop ceiling. 

Add this to the old "death and taxes are inevitable":  Delays and Overruns.

I keep a minimum of 20% cash-on-hand over the budget estimate and buffer at least 25% on calendar time to completion.  

Rules I live by:  #1 We don't know what we don't know.  #2 There will always be unknowns.

First, look to your lease.  It will tell you when rent is 'late' and how to cure.

My practice is to contact the tenant after the 5th of the month, and if not paid by the 10th, post a proper legal notice.  

Once served, the tenant will understand you are not fooling around and that you take the timely payment of rent seriously.  Posting/serving proper notice is mandatory to establish your demand for payment with the court*.

Be a nice, kind person and empathise with their situation; however, you are running a business, not a charity, so if you do not collect the rent due, YOU will be paying it out of your pocket.  

Note: In addition to the pay-or-quit notice, we provided a list of local charities that often help with emergency funds to avoid eviction.

*Many l/t judges will not honor a "no notice needed" filing even though your lease might stipulate it.  Save the headache of starting over--post that notice.

Continue to network with other investors, lenders-- traditional, private, and hard money. And never stop prospecting.

Remember, when you have a good deal, the money will find you.

@Stan J., agreed, I wouldn't provide them with the actual trust docs either.  

Try giving them an "AFFIDAVIT OF TRUST' which outlines the parameters of the trust and names the Trustee and their responsibilities, without naming any beneficiaries.  

I use the same affidavit (mine are notarized and recorded) to give to the title company when we're closing a trust property--works for them. 

Good luck.

Wow, what a sad story.  Cart before the horse?

@Account Closed,  Most folks think education is expensive.  The reality is that the cost of being uneducated is much greater. 

Going forward, know what to do and when to do it BEFORE you act upon a 'great deal' you might have stumbled upon.  

Listen to the insightful comments by @Ned Carey and @Ken M. and get your ducks in a row.  Just chalk this experience up to life tuition.

I agree with @Nicholas L., use the HELOC for short-term available cash--it is good to have the HELOC available to use when needed.

Remember, it's not 'play money'.  It must be repaid as agreed, or you will rue the day you took it out.

Perhaps consider installing hot-tubs/jacuzzis instead of a pool. Check with other STR owners in the area, with zoning, and your insurance agent.

@Greg Kasmer asks the right question about 'over purchase price' mortgage. Is this a hard-money lender or are these traditional loans, not an FHA 203-b or such?

Another important question: what do your sales contract(s) state re: mortgage contingencies?  

Please let us all know the circumstances, AND tell me who the lender is who will approve such a loan.

Good luck!

Raise the rent by a small percentage every year—even if it's just 2 or 3%.  If you don't, you will lose money until you make a big increase.  At that point, you will lose tenants.

So do yourself and your tenants a favor; let everyone know their rent will increase by "X%" every year.  Maybe it could keep up with inflation.  (Doubt it, but better than nothing!)