All Forum Posts by: Matt Sicignano

Finally-someone who gets it!  What's the use of checking someones credit and history when there are so many people who subvert the system by letting a bad tenant extort money from them in return for a clear credit history!! Does that make sense, especially when there are so many posts about doing your homework and vetting prospective tenants thoroughly?  It's nothing more than a selfish desire to make it easier on themselves and let them screw the next person they rent from! And when you don't create a public record of a deadbeat-that's exactly what you're doing; screwing the next landlord down the line. Thanks for pointing out the hypocrisy of some of the posters here.

Interest rates are not rising, but your rate lock expired. You may have had a 30 day or 45 day lock on the rate. After that it floats. It may even be cheaper now. The seller has no obligation to pay for a rate extension or an extended lock for you, unless it's in the contract (rare). Does the deal make sense? If you can terminate (there was no provision for extending the closing date in the contract) you would lose the appraisal fee. Have you checked the new rate-you may be able to float it at the same or slightly higher. If its a flip, 1/4 point won't mean much!

$486 monthly increase X 12 months divided by $39000 "investment"= almost 15% return. And while you give up some tax breaks on the mortgage, you make that up by not losing much income if it needs to stay vacant for a month or so. On the other hand, keeping it in "lending club" with an increasing chance of a bad loan yields 6%. That's a tough one!

 I did not even consider that-I'll have to research Georgia law. I know California is very tenant friendly-could that single pay be state specific? 

I don't like Cozy-I did, but then they became too hard to use. It's impossible to de-list a property on there (you have to email them-really?) and the delays are crazy. Yes they make their money on the float, but still. And getting a prompt response to a simple question is difficult-I'd hate to see how long a real screw up would take.  My tenants have been asking me about Chase a lot-that seems to be the next big thing. I have tenants who use a special Bank of America debit card to make deposits too, and always use BofA auto -pays from those who have good accounts. In fact-since I pay every bill onine-I don't see why everyone can't. I'm going to make auto-debit a requirement in my leases-who writes checks these days? And that takes a third party out of the equation. 

I'd just like to answer Joshua's question simply and accurately. The Community Reinvestment Act had as much to do with the 2008 crash as Larry Bird had to do with the  Bird Flu. In other words, no; if policies like the Community Reinvestment Act were still active we will not repeat the 2008 crash. 

@Vincent Crane I feel your pain in Atlanta! It seems like here the deals are not there anymore; plus the ones that are around are very sketchy (both in area and price). With Atlanta still being in the top three for underwater mortgages, and the fact that while we put up with low to average appreciation over the years only to be smacked with high  to outrageous losses during the bust , the potential for a strong comeback I think is not great. I'm selling some properties I've had over the years to get the numbers down for re-financing some of the other properties (an aside-why am I a bad risk because I have too many mortgages when I never missed a payment during the recession and beyond?) and I'm surprised by the interest and sales I've gotten from the investment companies. These are 20+ year old grade B properties,cosmetically  renovated and have been looked at owner occupants and been nit picked to death.  They are not trowing off a lot of cash, and I can't figure out if these guys know something I don't re: appreciation or they are just desperate for deals. 

Get rid of them!  Follow your state law and evict them!  Don't be held hostage by these people.  If you get them served personally at the residence (where you know they'll be , you'll be able to sue for monetary damages as well as possession of the property. It sounds like they are trying to bully you into submission, and if you let them get away qith this, you'll lose, and the next landlord will lose.

I agree that the "too big to fail" banks got a pass, and are back to old tricks because they don't have to worry about competition from the "too little to bail out" ones that went under. But you have an oversimplification of the Dodd Frank Act. And the reason 80% of the mortgage brokers are gone is that part of the Act that says, in effect, "if you buy it you eat it"!   I can imagine the conversations that took place after that. "You mean if I originate a bad loan, with lax documents, unverified income, shaky credit and a sky high reset down the road, I'll have to bear the risk!?!?!!  Wahhhh...no fair!

Here';s something I have to reflect on reading all these replies.  At one point does someone get a second chance? If everyone adhered to what some here say, they'd have to live under a bridge.