All Forum Posts by: Matt A.

1) don't listen to what the "realtor says"... they want a commission, nothing more!

2) your going to invest $450k for a house in California.... and HOPE to make $30k? - that's NOT investing, thats speculating!

3) Im assuming your brand new (with 2 posts). If you want to get into trouble immediately, proceed with this deal... otherwise spend a couple months LEARNING. THe resources here are good... listen - ask questions, but DON'T go into nearly a half million dollar house looking to make less than what the agents will split a commission for.... a realtor most likely has ZERO clue how an investor thinks. You've got no room for error with that margin - and you'll have to leave some meat on the bone to sell and exit quickly too! (where is that coming from)?

4) remember what happened in the last crash... wiht listing / sales prices being out of whack, ask what happens if THIS behavior goes away while your holding? can you afford that loss?

As they say in poker, if you cant spot the sucker at the table, take a look in the mirror!

I've been putting together a "welcome to our community" booklet (about the size of the lead paint disclosure) that outlines what we do, what constitutes an emergency, our expectations, HOW to contact us.... All the things that we have learned over the last few years growing out business. There is a point that this really does seem to become overwhelming (and to think that I THOUGHT I had things automated - I've got a ton more to do), but don't fear - your growing! (remember, no pain - no gain).

I agree that you should set the expectation straight immediately - if there is ANY hint that there will be a problem Id let them go immediately (assuming the new resident wants to go, otherwise lay down the law now). Then spend a little time "training the tenant" as you grow your business and acquire more doors. It does become easier (to a point, then scale starts to creep in - but don't worry, by then you'll have the tenant training under your belt).

Not sure that I understand what your question is... no "rule" that Im aware of to buy. I have bought several investments under that price, in fact I just closed two duplexes in the last 30 days for well under that amount.

@Brennan Crick - I too have to applaud your creativity on this one. I would personally be leary of taking a HML right away and trying to re-fi out of that at years end. At least have your option period used before going that route. If you stumble on getting re-financed this one could really end badly, however with risk comes reward. I think you get the obvious, bust butt on improving credit and reducing your debt. If your still hovering too high once you get closer to the end of your option I would seek out a potential partner... better yet, start that process now!

I would gladly "option" a building to a tenant that needed work, while I would be fair if there was a problem for you at the end of 12 months there are others that might not be so forgiving... its a contract after all, your an adult and you should understand the risks before you put your money and effort into the deal. Then again, I cannot part water and have screwed up many times (I like to say I have a degree from the "School of Hard Knocks"... now my wife @Kristan Avila keeps me in check). What Im eluding to, be sure you have an equitable escape should rates, time, etc. turn against you in the future. Putting a year into your first deal and having the whole thing unravel because of a technicality - that would hurt (Im simply referring to your 12 month option... if it runs out you may have provided the owner some much needed equity, for free!)

Its ballsy and ambitious... I applaud it, respect your tenacity, and wish you the best! Pull this off and you've proven extremely resourceful. I think your asking the right questions... spend some time digesting some Kiyosaki, get creative and remember this is NOT a individual sport, rather a team effort. I missed out on a year of acquisitions because I had blinders on (back to my wife on that story, once she finally "corrected me" were buying again... and having a ball doing it!

Thanks @Steve Babiak... I did see that over the weekend. Our attorney will surely spell out the details - Im not too interested in pursuing anything other than getting his stuff out so we can remodel (we just bought the building two weeks ago) and move on. This tenant was significantly under-market rent, had no income (why the previous owner even rent to him was beyond me, however it did net us a NICE closing credit once I confronted them about it).

I'm most interested in what I have to do to essentially get my crews in to tear it our and put it back together again... so we can again cash-flow the property. We like to create "luxury workforce", make them nice and they rent fast to GOOD, QUALIFIED residents.

@Cynthia Reddy, there are a couple. One Im familiar with and have been to a few times.  https://www.meetup.com/LehighValleyRealEstateInvestorsClub/?_cookie-check=yVhe0AfanAmM0kBM

So in searching for "when tenant dies Pennsylvania" this thread came back to life. Yup, Im entering a new phase of landlording / investing... lat last year was our first eviction (a tough one too as they appealed it), now I get to deal with the death of a tenant - one in arrears whom I just served a 10 day notice on as well! Interesting situation that Ill report back what the actual process was for me at some future date, however the highlights are 1) just bought the building 15 days ago 2) inherited tennant that was previously evicted within 6 months (and I negotiated a big discount from the seller because of this guys past "lack of performance"), 3) poorly written lease, almost zero right to landlord 4) excuses about rent payment started on the 1st when rent was due - had to wait till the grace period was over to actually post 10 day notice.... then 6) was planning to negotiate "cash for keys" in person yesterday (why does this crap ALWAYS happen on a weekend?) and I found out from another tenant that police & coroner were at the unit 90 minutes earlier!

Anyway, changed the locks, let the neighbors know to simply call the police if anyone is hanging around or trying to get in, and left contact info on the door. Also unplugged all the stuff sitting around so there isnt a risk of electrical issues.... adn took LOTS of pictures with the phone (to time/date stamp everything). When I spoke with the responding Sergeant as well I guess I was on their list of folks to call... they found my previous days 10-day notice and directly said I "wouldn't have to worry about that any longer".... what they didnt offer advice on was what to actually do (and on a side note the police are the worst people to ask for legal advice.... ALWAY speak to an attorney / lawyer)

Ive reached out to a couple property managers that I work with and received completely different procedures / advice... (note here, as @Chris K. says, get your own lawyer) and also contacted our attorney - who has assigned a junior guy from his firm to tackle this situation (I also like dealing with the top and let them make the call when someone else should handle it). Im far more comfortable with sound legal advice too.

@Lane Kawaoka - Im not going to argue that, at least for now. Were in different phases of life as well. Financially I can retire today... Ive put in the time and done okay by most standards. Im working because I love what I do - and have loved it for the last 20 years. Im with a great company and they offer me the flexibility to pursue this goal in RE as well.

I also love what were doing with RE, my point was not to overlook the smaller deals (the ones Im buying are solid working-class housing where I can net over 10k+ annually on these properties). We renovate to "luxury workforce", add the nicer amenities and get a premium tenant as well. Our systems are good (there is always room for improvement, that Ill concede to).

I do agree with your philosophy of having ones cake and eating it too... the day job is good, and Ill keep it... for awhile anyway.

@Chris K. - looks like the one that my agent just used was v 1/16. Not that old, but just drives home the point... READ the thing before you sign it!

I just put another building under contract yesterday, One the PAR contract It specifically states that the seller does NOT have the right to the appraisal, (on page 6 of 13).

As @Chris K. says (my modified version) "although I'm NOT a lawyer, I did say in a Holiday Inn at one point". Seriously, best to run the legal stuff through the proper resources. The form says all other "inspections" (at least the one that we just executed), and your free to make whatever changes you want... but get it done before they agree to it. 

Personally I NEVER give up my appraisal unless its under sales price (of course I have a contingency for just that too - dont you?)... and even then its at the last possible second (negotiating).