All Forum Posts by: Matt Devincenzo

Yeah relax on the termite issue you live in the south so they're not really a cause for concern...more a fact of life. They can do a lot of damage but having them if more a when not if type thing.

Drywood termites really don't have a preventive treatment because they swarm (like you experienced) from neighboring buildings and land on yours.

Subterranean dig up through the ground and can be treated with baits that they eat and kills the nest.

In any event if you haven't commited to terminix yet call a local company they'll be cheaper and they do the same thing so no worry on the quality aspect. You'll most likely have to tent the place and then you'll be fine after that. Get the yearly treatment or whatever it is that they'll treat for the subterranean and inspect for the DW and you'll be fine.

I'm also one of those like Brandon Turner that lives ala dave ramsey and invests ala RDPD that Beth Declercq mentioned.

The way I look at it is this personal consumer debt is worthless it only serves to get stuff that wears out and ends up thrown away. Debt that makes money is different and isn't truly debt it's really leverage being that it is creating a compounding effect on your money.

Now that does not relieve you of the responsibility of using it wisely as we've seen mentioned plenty of people lost in this last cycle because of their over extension on that leverage.

I also don't think you can really compare RDPD and Ramsey, the reason being Ramsey really talks about personal finances and how to become financially free, RDPD really talks about how to build a business system to create a passive income stream for yourself; they're really apples and oranges IMHO.

I doubt very much that the tenants will even know what it is if you did give it to them. I wouldn't worry about it unless someone was to ask for it but I doubt any would.

If this is a retail flip I think adding the shutters will really help offset the plain rectangle feel and help it sell faster. I don't know how many windows you have but at HD they have vinyl shutters for $35/pair so for maybe $300 including install you could give the house some dimension.

I would also add at least 1 taller bush/tree off on the corner somewhere again to break up that 2D feel of everything.

http://www.homedepot.com/p/Builders-Edge-15-in-x-48-in-Louvered-Shutters-Pair-028-Forest-Green-010140048028/100376501#.UaD_27W1GSo

Let me just say Brian Gibbons & Bill Gulley it is always great to hear you guys giving advice on how to ethically run a business that has this history of "you can just keep putting new TB in there and collecting option fees".

Obviously that is not the way to have a good reputation, or to treat your "clientele". You can make money without screwing others in the process. Thanks again for being stand up ethical business men.

Welcome Ricardo Mangini. I think your plan sounds completely do-able and is similar to what I have done in the past and am still doing to some extent. Once you get the 3rd or 4th property you will finally really start to see the growth happen much faster.

Look around here and make sure you understand the 50% rule "of thumb" and some of the flipping formulas, if you do that then you should buy right on that first property of yours so you make sure that you really got something that is working in the positive direction.

Jason O here is something I found on rent control for LA. It looks like there is a way you can increase above the normal threshold by requesting it being "just and reasonable".

While it is ultimately up to you to make the decision on what you want to do, I would consider keeping them in there for two reasons.

One they have apparently been pretty decent tenants and taken care of the place for 35 years (an assumption) and vacancy and turnover are a LL biggest killers.

Two they've been there so long that you are pretty much guaranteed that you will have a lot of turn over expense because of how much will need to be updated so rather than have the expense maybe you can make this a win for all.

I would look at bumping their rent to 850 with the rent control board's approval that way they get a place at somewhat of a discount so it's a win for them. But the bigger one is you have no expense to turn over the unit so it's a win for you.

And then in the future just always bump it by the approved amount every year.

http://lahd.lacity.org/lahdinternet/LinkClick.aspx?fileticket=RHSagu8gnT8%3D&tabid=264&language=en-US

That might be the problem CO is trying to take them all away haha.

Austin S., understand that getting fired up will not get you very far. Dion DePaoli is one of the active note guys on here and gives some great advice. While you may not have liked his assumptions he was trying to give you more information, and his info was telling you you're focusing in the wrong area.

Now what if he had just responded "yes you should send a letter" then you'd be upset he didn't help you at all.

So I guess you can choose to send your letters and see where you get or you can choose to try to focus your marketing to something more productive and see where you get....

Point being don't bite the hand that feeds you...or in this case tries to help you learn to feed yourself.

Ok so the simple answer to your question is to give them notice (prob 60 day since they've been there so long) which basically just says that you are ending the tenancy and they have until XXX date to leave.

Before you do that you may want to consider keeping them in there and raising rent. I'm not sure why you said you can't raise rent so let's start there why do you think you can't raise it?

If you did want to you would again give them notice saying rent is going up to $XX on XX date giving them reasonable time (again prob 60 days) prior so if they decide to move then they have time to look.

If I were you I would look up a local property manager and ask them what they would charge to help you. I say this because your profile says you know "zilch" about RE so someone experience will pay off 100X over if you have trouble with these tenants. Or look up Mike Franco here on BP he lives up in LA so he may be able to give you some local LL advice to keep you from losing money on mistakes. Good Luck.

Then they're in breach assuming that you contract set their move out daate prior to COE, now ball is in your court...me personally with the way things have been in CA recently I'd close and give them 5 days or something to move but hold 10K in escrow until they were out...something like that.