All Forum Posts by: Michael Quarles

Your mortgage isn't late til the 15th of the month. How would you respond if your mortgage company sent you a bad start letter when you've been paying your mortgage before it's late?

Russell, the property owners terms of note secured by the real property, unless in foreclosure, have little to do with the tenants obligation.

Heck it’s common practice to make someone aware of an impending obligation. I don’t see an issue.

i would be aggressive and take every step the law allows. I would certainly remind the tenant the agreed upon terms of our agreement. But then again i still believe in fist fights.

The law states rents not late til the 10th of the month. Just like your mortgage is not late til the 15th of the month.

Russell is it just me or are you being argumentative? Especially for a moderator.

What I am reading is that the rent was due on the 1st and the tenant has 10 days to cure that obligation without a late fee.

making the tenant aware of their obligation or upcoming obligation is more than acceptable imho.

In the jurisdiction where this guys property is, rent is not late til after the 10th of the month. He even put that in his post. There's multiple counties and cities in that state where rents not late til then. There is no recourse to be had. Harassing your tenant on being late, when they are not actually late will end up with him having legal action against him. There are numerous tenants rights organizations in Baltimore looming for exactly this and other issues.

I never once suggested harassment.

I wonder if a spouse can remind their spouse of their upcoming wedding anniversary. maybe there are tenant right groups for them too.

btw anyone else enjoying Trumps debate:).

0 Votes

Baltimore, Maryland

Let me say BAKERSFIELD is a terrible place to buy houses for cash.

Stay away and say sane. You will live years longer if you avoid BAKERSFIELD.

Besides BAKERSFIELD is a very conservative city and they hate, a big word I know, outside investors.

Besides 19 in 20 people in BAKERSFIELD are devout atheists.

0 Votes

San Francisco, California

Quote from @Russell Brazil:

Quote from @Michael Quarles:

Quote from @Russell Brazil:

Your tenant hasn't been late yet.

Your mortgage isn't late til the 15th of the month. How would you respond if your mortgage company sent you a bad start letter when you've been paying your mortgage before it's late?

The law states rents not late til the 10th of the month. Just like your mortgage is not late til the 15th of the month.

0 Votes

Baltimore, Maryland

I’m going to disagree on the house hack. You should never chop up a house. See what I did:)

I would make sure my investment business was separate from my personal business. That VA should be saved for your personal use. Btw thank you!

Learn sub2 and/or seller financing and go buy a few 100 homes. Sell five keep the sixth free and clear.
Investing isn’t difficult however not easy either. It’s like learning jujitsu.

0 Votes

Quote from @Russell Brazil:

Your tenant hasn't been late yet.

Your mortgage isn't late til the 15th of the month. How would you respond if your mortgage company sent you a bad start letter when you've been paying your mortgage before it's late?

0 Votes

Baltimore, Maryland

substitution of collateral is something which can be highly unethical. I stopped teaching it years ago. Btw don’t teach anything anymore.

I think you missed;

1- easiest and fastest way to sell their property

2- qualified buyers when given the opportunity of buying via seller financing won’t tie up ability. That ability is beyond credit worthiness.
3- the ability to receive monthly cash without receiving all of the cash. My homeless seller needed seller financing.
4- in some cases seller financing is the only option on non conforming use property.
5- can I say again. It’s the fastest way to sell and buy a property.

2 Votes

Hi Haiden,

are you an agent or do you still need to pass the test and qualify? As an investor neither is needed.

As to how much do you need? Close to zero.
Most sellers want to hold a business card. Vista sells them for 80 bucks.
You need a phone. I would use Voiply for 20 bucks. It’s a VOIP.

You need a car and gas and insurance. You probably have that already.

As to wholesale or hold. The mathematical formula is 5:1. Flip 5 keep 1.

Investing isn’t as linear as some think it is. Jump in and learn what you don’t know to know.

Happy house hunting.

1 Vote

San Jose, California

Quote from @Isadore Nelson:

Quote from @Michael Quarles:

Quote from @Don Konipol:

Quote from @Michael Quarles:

Quote from @Alecia Loveless:

@Helene Goodworth I always put 20% down. But sometimes the appraisal comes back higher so I end up with extra equity after closing.

I have a great relationship with my primary lender and they require at least 20% down. They’re willing to work with me and are local to my market. They don’t sell off their mortgages so I will always have a local connection in case I need assistance with the loan or any other aspect of my business.

There’s plenty of good reasons to put 20% down and to me, not being concert leveraged is of primary concern.

Why are you always putting 20% down? I’m perplexed.

What makes a “good” deal can differ enormously from person to person. Low down payment is a significant part of your criteria, Michael, and it obviously fits your personal needs, wants, financial position, goals….
But for myself, for instance, ability to pay a low dp is of absolutely no importance. My main criteria is purchasing below market value, with a 12% or better ROI. In fact, it’s a LOT easier to find a good / great below market deal if (1) you offer all cash, quick close, NOT subject to financing and or (2) the property is one in which obtaining financing is difficult, if not impossible.

Another example of where low DP is not preferable is when we syndicate property purchases. We almost always utilize 50% leverage. The reason is that we have a relationship with a regional bank that will provide financing and which if we limit leverage to 50% will (1) charge interest at their lowest commercial rate fixed for 20 years with no balloon, (2) charge 0 origination points and no “junk” fees and(3) allow us to sell the property with either a sub to or a wrap loan without increasing the interest rate - in other words no due on sale clause. We sold one property this year where we wrapped the 4% mortgage note into a 10% note and as a result are enjoying a 17% annual ROI for a minimum of 2 years and possibly as long as 10 years if the borrower/buyer does not pay us off early.

After 40+ years of real estate investing, in many different markets across the country during many different economic climates, both in residential and (primarily) in commercial, I can tell you that hard and fast “rules” should be constantly evaluated to see if they are limiting the opportunity to “jump start” your wealth building.

I would much rather buy at 65-70% of As Is value utilizing sub2 and seller financing with zero to very little down then wholetail the property. it’s certainly more difficult to find and negotiate however I don’t have much exposure And little at risk capital

Ultimately it’s more enjoyable to me

You've found 100 deals with seller financing and sub2 arrangements? That's impressive.

It’s Not difficult. One just needs to understand how it’s a benefit to all parties and how to negotiate the terms. Seller financing is by far the best financing option.

0 Votes

Upstate New York, New York

Quote from @Don Konipol:

Quote from @Michael Quarles:

Quote from @Alecia Loveless:

@Helene Goodworth I always put 20% down. But sometimes the appraisal comes back higher so I end up with extra equity after closing.

There’s plenty of good reasons to put 20% down and to me, not being concert leveraged is of primary concern.

Why are you always putting 20% down? I’m perplexed.

0 Votes

Upstate New York, New York

All Forum Posts by: Michael Quarles

Michael Quarles has started 130 posts and replied 3282 times.

Post: Can we stop with the ChatGPT responses?

Post: Bad Start Letter?

Post: Best place to invest for a California resident?

Post: Bad Start Letter?

Post: Blue Print to Wealth

Post: Bad Start Letter?

Post: Can Seller Financing Benefit the SELLER?

Post: Minimum amout for starter investment?!?

Post: Another potential deal that I am trying to figure out

Post: Another potential deal that I am trying to figure out