All Forum Posts by: Account Closed

I had an incident where damages occurred due to criminal activity by the tenant and I am taking them to court. I need to get a police report. I have asked for one from the Police department but they are lagging as it's been over two months and I still haven't received one. Is there another way to get the report or put a priority on the report?

Usually there is an investigator working the case. That person may be overloaded with work so you have to find out who they are and call and leave a specific message with case number and your phone number so they can reach you.

0 Votes

Milwaukee, Wisconsin

Originally posted by @Andrew White:

I own a medical office in a retail strip in West Michigan. My landlord recently asked if I'd be interested in purchasing the strip from him as he recently moved out of town and is looking to offload. Currently isn't on the market but he is willing to talk about selling. The strip is at full occupancy (7 tenants) one of which is one of my practices.

The building is new (2016) and is a great location. I own residential properties but no commercial. What questions should I be thinking about/asking when looking into this? Is it appropriate to ask for copies of all the current leases and for any record of delinquency/rent checks bouncing with current tenants?

The conversation started because I inquired about the longevity of my neighbors as we are outgrowing our current space. So my practice would end up being a capstone tenant for the plaza. Looking for advice on where to start when inquiring about details so I can run numbers.

Just be aware that if the economy takes a down turn in the future, you will probably have to reduce rents to keep your tenants. Also, as new space becomes available it competes for your tenant's dollars. That isn't necessarily a big thing but in doing your numbers you should account for it. Rents don't always go up. Sometimes they go down.

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Originally posted by @Jack B.:

Was listed last July at 450K, price reductions for 2 months down to 430K, then delisted just before Christmas. Listed again a week ago now asking for 445K.

The carpet in some rooms has some stains, nothing too bad, but not "unmolested" either. Back fence needs to be replaced/falling apart. Otherwise the house is what I'm looking for, no HOA, large lot, 2006 built/newer and 2.3K sf. 4 bed 2.75 bath, like the layout, modern kitchen but not new construction fancy...but like I said the house is roomy and the layout is great for me.

I offered 423K on account of carpet, fence, time on MLS, etc. The agent countered with 430K being their number right now. Which is what she told me they'd go for on the phone earlier when we spoke.

Should I come up to say 427K or just take the 430K. It's a 15K discount. Not too shabby, and as an eventual rental, it will do OK which is hard to do in this market and to top it off, appreciation in this area is slated to be high this year on account of interest rates. It's in Algona, WA 98001...

What I COULD do is take the 430K and say 60 day close, which give me time to find a tenant for where I'm living now as I rent it back out...That said would I be better off asking for 90 day close? I have another rental that I'm trying to fill right now and would prefer NOT to have 2 vacant units at the same time if I can avoid it...

Wow! A house in Algona for $430K ? who's smokin' the dope? Guess things have changed since Iast I flipped there. That used to be industrial waste paradise from the Boeing fab plant. Make sure you get a soil test first. Just sayin'.

1 Vote

Originally posted by @Matt Ridenour:

@Mike M. Thanks for the input. I am a little shy about the lease option, as I’m just coming off a failed land contract on the property. I did learn some valuable lessons from that so I suppose it’s not out of the question.

I’m a lot shy on the red 32 option. :-)

I just had one "fall apart" on me, too. A Tenant Buyer gave me $20,000 for an Option fee about a year ago. They upgraded the kitchen and bathroom. I cash flowed it at $650 for 11 months and they decided to move out of state for personal reasons. I kept the $20k as per contract, and found another Tenant Buyer who gave me $25,000 and same cash flow. I used $3,000 to fix a few things and clean up the mess of the previous Tenant Buyer. The new Tenant Buyer is doing he heavy lifting on more upgrades. So, I guess $20k + $25K - $3k for a profit of $42,000 in 12 months was an "okay" "fall part" deal.

This is not an uncommon experience with the Turnkeys I provide for my CA and SD county investors. Take a chance, do the Tenant Buyer again, it's worth it.

1 Vote

Originally posted by @Mark Gruetzmacher:

@Account Closed I have talked to a title company and they do not contact the IRS for payoff. They said it was too much work and takes a lot of their time. They said that we would have to do it. Truthfully if wouldn't be worth it at all either considering the house is worth 40-50k, and what is owed is WAY over that.

I've never heard of a title company allowing a lien to survive a title transfer without proper documentation with chain of custody and proper subordination. Seems to me that would put their errors and omissions at stake, but what do I know? ;-)

I think they just don't want to take your business. Not enough money in it for them and too much risk.

Sell it to me for $1 and I'll see what I can do.

0 Votes

Originally posted by @Matt Ridenour:

Ok, here's the situation. I own a 3/2 free and clear in an up and coming hipster market. I had a tenant buyer in the place but he defaulted on the taxes. The only debt I have on the property is the 30k I had to pay in taxes, plus about 7k in rehab costs once he leaves (2 weeks.) The rehab is paint and carpet plus a bit of landscaping so not much at all.

The market is super hot still and I know I could get top dollar for it as a sale. (About 220-230k. Don't laugh, it's not San Francisco or New York! :) Rent should be around $2k per month but a range of 1800-2100 is what I'm looking at. Taxes are pretty high at 9k non homestead.

Would you:

A. Sell the property and use the funds to reinvest elsewhere

B. Rent the property and take out a heloc to fund more brrrrs

C. Rent the property and take out a 30 year fixed

I'm looking for a mix of cash flow and portfolio growth. I've got 4 years left in my w2 job before I retire.

Any thoughts would be welcomed!

I'd borrow as much as I can against it (tax free), rent it out for more than the payment or sell it on Lease Option with $20k down and use the money I borrowed to buy more properties.

Or conversely I'd place it all on Red 32 in a game of roulette.

0 Votes

Originally posted by @Jack B.:

Originally posted by @Account Closed:

Originally posted by @Jack B.:

Considering that the loan documents state that my loans can be called any time (I think it was 90 days? It's been a while since I signed one but it always stands out in my mind when I do) every time I buy another property it stands out to me in my mind. Right now I'm a few months away from being able to pay off my properties. And here I am about to buy more to take advantage of low interest rates. It does make me nervous...

On one hand I want to keep the 2 mil I have, on the other I want to grow it more/faster.

So that begs the question, why DID Dave Ramsey's loans get called and how common is this?

It was a downturn in the economy and he was over levered without the ability to make the payments.

Taxes changed.

Ramsey's success came to an end as the Tax Reform Act of 1986 began
to have a negative impact on the real estate business. One of Ramsey's
largest investors was sold to a larger bank, who began to take a harder
look at Ramsey's borrowing habits. The bank demanded he pay $1.2 million
worth of short-term notes within 90 days, forcing him to file
bankruptcy.

So what is the probability that this will happen to someone? I met someone the other day that got a 3.2% 30 year loan as a "primary" despite telling the bank they are going to rent it out. Bank told them they don't care as long as they make the payments....

If true and it was a portfolio loan, the banks speaks for itself so they can do that. If true and the loan is government secured, my understanding is that is mortgage fraud and mail fraud.

0 Votes

Just when you are at the top of the world - your money disappears.

So, do you still trust electronic transfers and accounts? Hmmmmm?

https://www.zerohedge.com/mark...

Countless Fidelity Accounts Showing Zero Balance

by Tyler Durden Wed, 02/19/2020 - 11:01

While stocks are hitting fresh all time highs, bringing joy and spreading the "wealth effect" across America, clients of the Fidelity brokerage are having a rather shi**y day because due to a glitch, or perhaps a hack, countless accounts are currently showing a zero balance, or simply removing accounts altogether.

While we assume this pesky "glitch" will be resolved promptly, we should
point out that if the market were to ever again suffer a down day and
should investors wish to sell some/all of their holdings, this would be a
convenient way to quickly and efficiently prevent that from ever
happening.

0 Votes

Originally posted by @Jack B.:

On one hand I want to keep the 2 mil I have, on the other I want to grow it more/faster.

So that begs the question, why DID Dave Ramsey's loans get called and how common is this?

It was a downturn in the economy and he was over levered without the ability to make the payments.

Taxes changed.

0 Votes

Originally posted by @Trevor Bragg:

Hello BiggerPockets!

I am about to graduate College along with my fiancé. We are getting married in June, and we are looking for a place to live in Arizona. We are looking mostly in Northern Phoenix around the 17 and 101. I have been looking at doing a live-and-flip, but I have recently heard of Subject To investing. It sounds like the perfect fit for our situation since we have a lack of funds and credit history.

First, does anyone have experience of this in Arizona? Do the laws and strategies change by state?

My bigger question right now would be how to find lead sources. This is my first property, so I don’t have the funds to do direct mail. I am willing to do the work and research necessary, but I don’t fully know where or how to work. How have you found your Subject To deals?

I have a very brief understand of the concept, so if anyone is able to walk me through a property that you have done with a Subject To that would be very helpful. Also, if you have any resources or books with this strategy, I would love to hear about them!

Thanks!

Subject To is a more advanced form of investing. You need money for advertising, cashing out the seller, title, escrow, 3 mortgage payments (for safety), electricity, water, reserves and the ability to pay off the underlying mortgage within 30 days if they call the mortgage due. If you start missing payments the house goes into foreclosure and you ruin the credit of the borrower. They then can sue you. Make sure you know what you are doing before attempting. It is a powerful way to grow your portfolio but it requires training, consistency and money.

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 54 posts and replied 3295 times.

Post: How can I get a Police report

Post: Buying retail strip while a tenant

Post: Help me negotiate this deal

Post: Sell or rent, home is owned free and clear

Post: IRS Liens and Selling a House

Post: Sell or rent, home is owned free and clear

Post: Why did Dave Ramsey's loans get called?

Post: Countless Fidelity Accts Showing Zero Balance - Where'd money go?

Post: Why did Dave Ramsey's loans get called?

Post: Subject To in Arizona