All Forum Posts by: David P.

@Bob C, you have to weigh the facts; some money is better than no money. If the style is funky you are going to have to find the right buyer, and more importantly you are already into the hot months. I would suggest two different strategies:

1st I lower the price, stage the house to help the funky layout - sometime people have a hard time to imagine what something will look like without stuff. Then I would have two showings back to back advertise everywhere especially CraigsList, and other such RE List.

The 2nd strategy I would do only if the first strategy doesn't work and that I would through it out to investor group and/or you local REI group. Sometimes paid membership to these organizations provide you with group email so you are able to put it out there; but try and get your cost to break even; the longer it sits the less likely chance you will get you money out and vacant properties tend to draw attention.

Additionally, you could list it as lease option and structure the deal so that someone with no so good credit can purchase it. Not specifically my strategy, and you should involve a good RE Attorney!

I wish you luck on getting your property sold!

Dave

Excellent job on the video!

Pavel, a deal is where you cash flow. Purchasing an apartment building(s) is different than purchasing 4 or less units. However you probably already know this, and it's important to still understand your ROI.

Use the Bigger Pockets Property Cashflow Analyzer:

http://www.biggerpockets.com/files/user/wmonroe85/file/property-cashflow

There are other spreadsheets available for apartment buildings as well - take a look to find out what works best for you. I have modified for my purposes and works well to understand the numbers quickly.

Also, when you take this to the bank, they will ensure you have enough cash flow to make the deal happen as this will be a commercial loan. I know all of this is general information, but what makes it a good deal depends on your point of view and ultimately what the bank sees as a good investment. make an offer what you think is good; with contingency of financing... this way you can lock it up and iron out the details with the bank.

Good Luck!

Hi all, I have a property I am trying to sell to another investor; who is wanting me to carry the note. I don't mind "Wrapping" the mortgage, but not sure how this actually gets completed and the steps involved. Here are the details.

Selling price $200K with 20% down ($40K) and the loan would be $160K at 6.5% for 30 years.

My current loan balance is $155K at 4.5% with remaining 20 years with Bank.

Looking for assistance in making this happen and want to ensure that the "Due on Sale" clause is not initiated by the bank. This is not being sold through a Real Estate agent, so a Real Estate Attorney will be doing the transaction, but I have not contacted one yet. If I proceed, what do the cost look like to complete this type of transaction?

Thank you everyone for your consideration. I agree that I need to be consistent on collecting the late fees. However on a good note, I did collect last month's rent from them up front when I the tenant. I have made some concessions and given leniency on the late fees as they were pretty consistent on pay then they fell on hard times. As a business you have to say I don't care about your circumstances and charge the late fees, however we are also humans as well and try to be fair and compassionate. This said, the main reason for this post was to see what standard Late Fees others were charging so that I align better with others; not so much about the current tenants.

Again I want to thank everyone that posted - your points are well taken and hopefully others will learn from this post as well!

Great point Casey Cuppy I already own a few rentals in the Phoenix area but I am looking for something more appealing over all as well, and not just these two events. I love spring training myself, however I don't often get a chance to travel there that time of the year so it will be perfect. Scottsdale is a well known city name, but I am having issues locating properties that I want to add to my portfolio without breaking the bank and buying them right! The main reason I asked this question is to see what areas are the best - I was hoping for another answer other than Scottsdale, but near by the training facilities also works well me too.

My team/partners in that area keeps me up to date of what they are finding as well; the right deal will come along sooner than later, and they have already picked up a few for their purposes.

Thanks for the reply Casey.

Bill S.

this is great stuff; I didn't think of doing it this way, however you make a good point. I may also collect rent on a credit card with 4% fee and let the credit card company worry about collecting from them.

Additionally I like your point of collecting from them when they get paid; and I do that for one of my section 8 tenants and this seems to be working well. Once these tenants move out I am prepared to modify my lease to better fit their lifesytle and pay the rent!

Thanks again,

Dave

Thank you Theresa W. and Rolanda Eldridge this seems to be the right amount; I think I will be changing my lease with the new tenants.

Thank you everyone - I don't think it is acceptable to charge outrageous fees, however I do want the rent when the rent is due and sometimes this is done through higher fees.

Brianna Schmidt

I have seen this URL and unfortunately Late Fees: No Statute. The reason I am asking is one of my tenants are consistently late. While it is written in his lease $20 per day late fee, I normally give them a break and cap it at $300, but I have found they are consistently being late and told them that I will start charging them $20 if they continue being late.

The tenant often avoids my calls and text messages and when I do get a hold of him, he says I don't have the full amount; I only have $700. Then I say to them "it's better that I have some rent money than none at all", and I will be by to collect it. When I show-up they always have $100 bills in cash (I do write them a receipt on the spot). It is often I get this amount between the 7th and 10th of each month, but then the remaining amount doesn't come until sometime later in that month or even the beginning of the next month. I once served them with a 3 day notice to pay on Dec 20, (yes right before the holidays) but didn't have rent for November yet. The very next day I received the full amount for November. That said, they were late again the next month as well, so I started charging the late fee.

Their lease is coming due at the end of July and I am not going to renew their lease. I think they know they need to move on to something they can afford. I want to ensure that my late fees are within the law (which it doesn't look like there are any for Colorado) and that I am charging the "Norm" for our area.

Bill S.

Thank you for your response as well; I am just trying to get out in front of this and be prepared for the next tenant.

George P.

Just because you can charge anything you want I want to do what is fair and reasonable. This is why I specifically asked what others are charging in the Denver metro area as I want to ensure I am in aligned with other landlords.

I have heard different opinions regarding late fees. My properties are in the Denver Metro area, and the currently renting for $1150 per month and I charge $20 day late fee stated in the lease. Is this fair and reasonable for a 3/2 duplex? I have not found any written laws in this regards but doesn't mean there are not any; all advice welcomed.