All Forum Posts by: Matthew Rayl

@Bob Okenwa

Thanks for the reply and I do understand that I will ultimately be taking this to an attorney, just trying to get a firmer handle on the situation prior to. The Borrower is well past the ten (10) days of the end of the contractual period. I absolutely believe this a breach of contract and dissolves my JV agreement. I am specifically curious what the verbiage in the statement means regarding title and deed for the property. This PN is under Ohio btw.

Background: My first deal and it's been a bear to say the least. The deal itself was solid, but the business partner has been a pure headache. This deal has been a massive lesson (among countless others) for performing better due diligence with respect to a business partner. I am the Lender and business partner is the Borrower. JV fix and flip in Ohio. The Borrower has not repaid the loan within the contractual period of the Promissory Note.

Request interpretation of the following PN statement:

"If Borrower defaults in payment as required under this Note or after demand for ten (10) days, the Security will be immediately provided to the Lender and the Lender is granted all rights of repossession as secured party."

The statement is pretty straightforward, but I would still greatly appreciate seasoned input in lay-man's terms.   Additionally, I would appreciate recommended follow on courses of action to properly address this situation.  Thanks in advance BP.

-Matt 

@Jim Cummings

@Dennis M.

@Lori Greene

@Thomas S.

@Kevin Hunter

@Dan H.

Thank you for the feedback everyone, I appreciate the gouge.  Done, no question all names on the lease.  I'm getting a $2M umbrella policy with USAA (~$290/yr), I like the angle of having to "pierce" the  insurance's lawyers instead.  Three dogs was insane to ever entertain in the first place and I know a number of you say NO to dogs whatsoever.  As a dog owner, I'm not opposed to one dog but I will have to personally approve it and increase the size of the security deposit.  I bought back in 2010, so my position on this house is very good.   This house will cash flow $800/mo. after all expenses/insurance even though my rent is $200/mo below market for the first year.  That will be corrected next lease for sure.  Thank you BP!

@Paul Parker

@Theresa Harris

@Dan H.

If I am going to take on the liability of pets, it sounds like I should put this property and the lease under an LLC?

Do you include Personal Possession Replacement under the homeowner's policy?

What kind of insurance outside of a homeowner's policy is recommended?  (umbrella?)    

@Paul Parker

@Theresa Harris

@Dan H.

Thank you all for the comments, definitely some great nuggets in there that I will use for sure.  Now I'm onto changing my policy for the house and see what their rules are specifically.  

Prost!

BP, requesting a sanity check. I am about to be a landlord for my first time and I am in the military. Transitioning existing San Diego, CA SFR into a rental. I will only be moving 20 minutes away. Lived in existing house for 9 years and have great relationships with neighbors around my house. House was new construction.

1)  I have three prospective single tenants.  All three are military from different commands, but only one wants his name on the lease due to the three being of different ranks.   I have performed credit checks on all three (mid-600s), have copies of LES (paystub), currently reaching out to past landlords and contacting command supervisors.   The one prospective tenant that wants only his name on the lease is the highest ranking (E-7) and about to go on shore duty (i.e. he will not be deployable for the next 3 years).   It was explained that he would be assuming all the risk and be responsible for the whole lease.  Anyone see a big issue if I acquiesce to this request for only one of the three people to be on the lease?

2)  Same tenants request to have up to 3 total dogs (1 each).  They do not have the dogs yet, but request the option to get them during the lease.   Assuming the dog breeds are compliant with my homeowner's policy, I stated >35lbs = $25/mo/dog and <35lbs = $50/mo/dog.  Plus an additional $500/dog security deposit.  Commercial grade tile throughout downstairs, carpet upstairs.  Am I missing anything or are there any red flags I should consider?

Thanks in advance!

-Matt

Attention San Diego Wholesalers and Investors. I have a distressed property in the Del Cerro (92120) neighborhood that is going through probate and in which we must sell "as is." Property is an SFR w/pool and great bones. Interested investors please PM me to schedule a walk through.

@Jacob Lindsey Congratulations on beginning to take action. To piggy back on what @Michael Ablan said....typically you will have to live in the property for a minimum of 1 year before you PCS. Some lenders may verify this by requesting a set of your orders. There is no restriction to renting out the remaining units. Additionally, some lenders do offer VA construction loans, but the renovations to the property can only be cosmetic (floors, cabinets, roof) and not structural (foundation, moving walls, building additions, etc). Good luck!

@Adekunle Akande Hello Adekunle, I'm AD in Cali. Happy New Year! Congratulations on starting your investment career. Before providing any advice, I need to ask you a couple more questions to define your situation. One, are you looking to refi into a Conventional loan to completely free up your VA option? Two, how much did you purchase your current home for? If you didn't max out your eligibility up to $453.1K max for most counties in the US, you still may have eligibility left to purchase another (at least partially) home without refinancing your existing. What is your position in your existing home? Have you forced appreciation since purchasing?

I agree with your assessment on B and C.  I have a business partner that has several properties he owns free and clear that he got certified Section 8 in Class D areas that are returning 2-2.5%.  The rent check is guaranteed and his tenants have been stable.  I am seriously considering trying one out.  The cash flow is excellent, but there will be relatively zero for appreciation.