All Forum Posts by: Matt Devincenzo

To add to what everyone else said here, I agree on not charging anything additional you're renting a property not a # of people. One very important thing to make sure everyone understands though is the moving out part.

Make sure they all understand that if any one person moves out the security deposit does not go with them(or someone else has to put up the money for it) and the remaining people must still qualify for the rental. If anyone moves out in the middle of the term it is possible that the others will not be able to qualify and therefor it will be considered breaking the lease early and there will be penalties. If for some reason the cousin screws up he could get everyone put out of the apartment.

Not saying that any of those things might happen just make sure that your original tenant understands that adding others to the lease means that everyone is responsible for the property not just him that way if it does come up later and he says "I want my security deposit back I'm moving out" you can say "remember we discussed this before so you and your cousin need to figure it out".

I think what you are seeing is common wholesaler eraser math..."if I can bring the rehab budget down by 10K then this is a good deal"

I see that and the inflated ARV a lot use his line items put your numbers and ignore any DD you got from him(or at least be suspect of it and it's validity)

Lane it doesn't really matter what they're asking, what matters is what the value is and since you'll live there that is definitely going to be different than a typical rehabber would pay.

Here's where I'd start;
1) What would a freshly rehabbed house in the neighborhood cost (you say about 150-165 let's say 155)
2) How much are the repairs going to cost(at least ball park this one for now) we'll say 25K(8K roof+12K interior updating and repair+5K landscape and exterior)
3) What kind of a discount do you want for doing the repairs instead of just buying a rehabbed house(15K not enough for a rehabber, but you're not trying to make a living at this just get a better deal on your personal residence)

So 155-25-15=115K would be my maximum I would offer based on my hypothetical repairs ect.

I would assume for the discount to be that much below the ARV you've stated that either the repairs are substantially more than 30K or they're trying to get a bidding war going to drive the price up or your ARV may be off. Either way not saying that is what you should offer but that is how I would determine my offer for my personal residence NOT a strict rehab purchase.

John Santos what are the home values? I ask because that will definitely have an impact on you LTV, and what is the rental PP you would be looking at again to know how much money you have to come up with.

CDs aren't affected by water and clothes can be washed last I checked.

Show her the lease stating you're not responsible. Also something that may be in there or you should add for the future is a clause explaining that the tenant's property needs a renters insurance policy to cover acts of God like this(last I checked you aren't negligent for it raining).

I wouldn't pay it, if you want your valuables covered then you should have insurance for your stuff. Take it as a time to help her learn to be more responsible for herself, and for you to make sure you are even more clear about this in the future.

Is the problem what Patrick G. described (too much grout), or is it the thinset that was used to set the tile?

I have had guys that spread the thinset too heavy or used the wrong notched trowel and it squeezed up between the tiles like you described. I took a glazing tool (link below) when it was dry but before they grouted and scraped between the tiles and it would pop out fairly easily. If it has already been grouted over then you will most likely need to remove the grout and regrout like Glen Sonnenberg said unless the sulfmatic acid can dissolve the thinset as well.

http://www.wgsonline.com/mm5/graphics/00000001/23041250.jpg

Yeah I would. I'd just make sure whatever my normal ARV was plan on it being discounted to about 85%. You might be able to sell at full price but I'd build it in just in case so you don't get stuck later if you do need to start dropping the price.

You need to also identify the way that the specific state you are planning on bidding in works.

In FL if you foreclose the certificate the property still goes to auction even though you own the certificate. In some other states if you foreclose a certificate you now own the property. And in some states (MD maybe) you aren't bidding the interest rate but the price you'll pay for the certificate above the face value.

So identify a state and start with how that specific state runs things because otherwise you'll probably end up confused with all the different ways the states do it.

Terry I think you're trying to fit too many puzzle pieces together from different puzzles haha.

Being an agent first or setting up an entity or purchasing a multi will not necessarily hinder the others, and could all be done simultaneously. Best will be to talk to a broker in your area to find out their take on what they would and wouldn't allow if you worked for them.

Also realize that an entity is not vital to invest, I personally have 5 properties and every one is in my personal name. I find all of the entity stuff bogs down my ability to invest so I don't do it. I carry insurance and that is my protection.

I'm not advocating one way or the other just saying there are other options and there are threads on BP with the different ones with hundreds of replies to go through.

I would say if you decide to go the agent route I would find a broker to talk to while doing it or right before and ask them the questions about how they would want things if you worked for them. You'll get good specific local advice, and who knows you may talk your way into a job at the same time. Good luck and keep asking questions as you go, we're all here to help.

Hey Rich I wanted to weigh in earlier but I was just doing some BP catching up while at the W-2 job so I just had time to @ people and think about my response this afternoon.

For me my definition of retirement is similar to yours, have enough money to live comfortably and to continue to grow passive holdings simultaneously but not to have to continue to invest to have an income coming in.

I'd like to retire in the next 15 years (I'd be 40) with about $20K/mo gross for living expenses (I am in CA so that definitely doesn't go as far here between taxes and cost of living).

My goal honestly is somewhat twofold, I would like to partially retire in the next 2-3 years having enough passive income to not need the W-2 anymore. This will take about $5K/mo. The reason for this is that would be when my daughter would start school, and I'd like to homeschool her (I was HS and think I turned out alright) but I'm a single dad so that's what it would take for that to work. I would still invest but I would be focused on doing it without requiring my income to make it happen.

As of now I think I may just be able to do it by about the end of 2014. I have a W-2 that provides me about $6700/mo and I either invest, 401K or give to church about 35-40% of that so if I make my $5K number I should be alright staying home. Then I would focus on my daughter and doing RE to continue to build that passive income.

And you better believe math lessons are going to involve CAP rates, COC, ROI and other useful equations, I've got to leverage her for my staying home somehow. ;)