All Forum Posts by: Mardica Henderson

I am selling two SFR with great tenants. I'm seriously considering seller financing. I'm open to doing a land contract. I'd like to carefully and legally include the mortgages in the seller finance, if possible. The cap rate would be 6%. I'd like advice on how to do this.

These properties are north of Tampa in Marion and Citrus Counties - Lecanto and Ocala

I am selling two SFR with great tenants. I'm seriously considering seller financing. I'm open to doing a land contract. I'd like to carefully and legally include the mortgages in the seller finance, if possible. The cap rate would be 6%. 

I'd like appreciate advice on how to do this.

Thanks. 

I am selling two SFR with great tenants. I'm seriously considering seller financing. I'm open to doing a land contract. I'd like to carefully and legally include the mortgages in the seller finance, if possible. The cap rate would be 6%. I'd like advice on how to do this.

Also, does anyone happen to know current DSCR rates?

Thanks.

Hi all. I would like your opinions on this situation.

I have tenants on a month-to-month. Due to late and now -  no payment situations, I need them gone. I'm trying to decide if it's best to evict them or terminate the lease. The property is in Florida. I know the steps I must take. I'm debating the consequences if they resist. 

Thanks in advance. 

You can take them to small claims court. It takes time to learn the process and time to collect. How much is your time worth?

When you win a judgment you can collect on it by garnishing wages, repossessing vehicles, amongst other things. You will need to know certain things like their social security number and bank account number. You will need to know their employment information so that the garnishment is taken out of their pay checks.

You can file the judgment on their credit by sending the judgment documents to the credit bureaus. This can really mess them up and stays on it for years. If the former tenant pays, you can remove the judgment. This can be a bargaining tool for getting your funds.  

Check into your states allowed interest rate on judgments. The last time I did this, the interest rate wasn't even 3%. There was no incentive for the former tenant to pay. 

The courts may throw your judgment out after a certain time period. You may have to show that you are taking active steps to collect. You need to stay on top of this.

When it gets to this point, you may receive letters from companies offering you pennies on the dollar to take over the judgment. 

So landlords - be sure to get the social security numbers from all adults living in the property.

Make sure you have the current employment information. I make my clients fill out a form annually that updates this information.

Make sure all adults - even children - who have turned 18, sign the lease. 

Be sure to get their bank info. The biggest reason you need this is for collections. Even if the tenants are paying in cash, you need this information just in case. 

Best wishes. 

Thank you to everyone who took the time to offer such good ideas. I really appreciate it! 

Greetings. Does anyone have a lender who will allow me to get a loan on a house I paid cash for. I've invested several thousand fixing it up. Now I'd like to pull cash out and move onto another project. I'm running into 'seasoning' problems. Most lenders are telling me I have to wait 6 months before they'll go off of the improved/new appraisal value. If I try to finance it sooner than that, they will only go off of the original purchase price. Any suggestions?

Investment properties usually require 20% down as a minimum. You can find properties with what you have saved, but they may not be in areas with low crime, good schools, economic growth, etc. Be very careful. 

Have you gotten pre-approved with a lender? If so, you know what you can afford. Look for properties that are less than that so that you can bid over if needed. 

If you buy as an owner/occupied, you don't need as much down. Perhaps you could afford a multi or even a rentable accessory apartment. After a year, you can move on to the next one. 

Even if it takes you awhile to get your investments started, you're still doing better than most Americans. Stick with it! 

Thanks for the posts. I didn't even know what type of loan I was looking for. Now I have something to google - DSCR.

Ashley - the property is in Florida.

Hi Zac. I invest in the southeastern states. I use a 26 point criteria to identify the properties from which state down to which house. I look for landlord friendly locations with population growth and a healthy economy. I'm not interested in properties in bad school districts or crime areas. I prefer to rent to middle income tenants - they tend to care more about their credit and stay longer. PM me if you'd like and we can get into it a little deeper.