All Forum Posts by: Nathan Claire

Great areas

I use LVP- Luxury Vinyl Planking for all of my rental properties. It's cheap, lasts long, and is easy to install. I would not recommend carpet as it is susceptible to stains/dirt and heavy wear.

Here in Jacksonville FL, homes are flying off the MLS and inventory is very low. It's a great market for buyers AND sellers. For buyer's, you can lock in an amazingly low interest rate on your mortgage. For sellers, you can move your properties fast and sell them for top dollar. I'm wondering how long this type of market will last here and how things will change 6-12 months from now.

I have been adding tankless water heaters to all of my rentals as of late. The tenants love it because of how easy it is to use and how clean it looks compared to the "old school" large hot water heater tanks. I have not had any complaints about the cost and they have all been working fine :) However, I'm sure you could use the old school style and not have any issues, possibly even save your tenants some money.

The ARV or after repair value is the price the home should sell for based on local comps in the area. However, the home may sell for more or for less. Agreeing with Jerryll, "after repair" is a very grey area since who's to say what materials must be used or what specific updates/upgrades must be done to achieve the "ARV." Closing costs and realtor commissions are a part of the game. Real estate is a people business and people with certain roles in the transaction need to get paid. They should not be affiliated with the ARV since these costs do not have anything to do with repairs. If the acronym was say, ARVMCCAAC, (After Repair Value Minus Closing Costs And Agent Commissions) then yes that "someone" would be correct in their argument. 

"It's gonna be a no for me dawg" (Randy Voice)

The reason I require my tenants to make 3.5X their monthly rent is so they can still pay their rent when unexpected things in their lives happen. Not sure how this virus is going to effect the income of my tenants but at the end of the day it's business. If my tenant gets a cold or the flu I am not giving them a break on the rent as it's their contractual duty to pay me to live on the premises.

I think you'll be okay, lot of snakes in the grass out there prowling, waiting for you to make a mistake and jump on the opportunity to bring you down. Try to work out this situation the best you can. From my perspective, you are doing everything right and handling things in a professional and respectable manner. Realtors often get jealous when they see the types of assignment fees wholesalers are earning from their efforts. Many of these same realtors see wholesaling as shady or unethical yet they have not a clue what goes into wholesaling and the services we provide to sellers who would rather not list their property or deal with things like repairs and staging. Keep doing your best and I'm sure this issue will subside.

Look for some private lenders who will do a cash out refinance on your residence. They are much less strict than the traditional banks and base the loan primarily off of the collateral asset (your house). These companies can give you anywhere from 70-80% LTV based on what your property appraises for. The interest rate will be higher than a traditional bank loan as well, but it's worth it if you are going to be putting that money you pull out to good use (which I'm sure you plan to!). Also, with a refinance loan, prepare for the appraisal to come in slightly lower than a typical real estate appraisal to purchase. Not sure why that is but from my experience and other investors here, the appraisal may be a bit lower than your liking. However, if you are looking to pull equity out of your property and the banks are giving you ****, I would look to a reputable private lender who is willing to do the refinance without making you jump through hoops. Best of luck!

Private lending or a hard money loan would be your best bet.These lenders typically lend based on a deal by deal basis and if you have solid credit and or some experience, you shouldn't have a problem. OR if your deal has enough meat on the bone (yum) then I am sure a fellow investor in your market would happily act as an equity partner for a 50% split of the net profits. Meaning you found the deal, the equity partner funds it and you both split the profits at closing. This works best for a fix and flip. Don't let the banks tell you NO, find a company or someone to tell you YES (but you'll have to prove to them why they should say so).