All Forum Posts by: Nicholas R Paust

@Account Closed thanks for the response.  I had a feeling I would have to get an attorney involved.  Based on my problem do you think its best to let the tenant know in a letter that its in their best interest to pay.  I have a feeling they are just doing this and not realizing that in the end they will still have to pay and also have an eviction on the credit profile.  In addition rentals are getting more scarce causing rental rates to go up?

I have a tenant who hasn't paid rent in two months.  A few weeks ago they finally told me that they applied for assistance since they reside in NJ.  I recently call the agency providing the assistance and was told that they did apply, however its a lottery so this is not guaranteed.  While on the phone with the agent they kept asking if I filed for eviction, which I haven't. I also asked if there is anything I can do to help them receive the assistance and they said "no", but "let us know if you file for eviction".  So what I took from that conversation is that they only take it seriously if I file eviction.   I'm a new landlord what's the best and cheapest way to go about this.  I was thinking of writing another letter to them through certified mail explaining what the balance due is, and also explaining that you are still required to make any payments that you can.  I will also point out that the assistance is not guaranteed and therefore since you breached your agreement I'll have to start filing for eviction.

Let me know what you guys think and any help on filing eviction without paying for a lawyer

thanks

I recently acquire my first rental and the tenant paid the first month on-time.  As of yesterday Aug 1 they are now two months behind.  I reached out to them the first time and apologized and said they are going to be paying along with the late fee.  I reached out again yesterday after not receiving either payment and was told they are applying for assistance.  The property is located in NJ and from I understand the eviction moratorium goes until Jan 1, 2022.   I just wanted to know should I be doing something now to protect myself.  So far I just sent a certified letter saying they were 1 month behind and acquired a late fee.  Is this something I should continue?  I also noticed the assistance they applied for  is a lottery so who's to say they'll get it. The assistance  program is Emergency rental assistance program (CVERAP) phase II   https://njdca.onlinepha.com    

Also would you recommend i seek legal advise and if so any recommendations in NJ

Thanks

Why would a lender care about the contribution from a seller.  I would think as long as it had the equity that they are looking for that would be enough?

I"m in the process of buying my first buy and hold property. I was able to get the property for $124500 and the property appraised for $125000. I was able to get a credit of $3750 due some needed repairs after getting the inspection done. I figured this was great because my loan is for $100K since the lender offers 80% LTV.

I'm now being told the sellers concession needs to stay under $3500 for them to be able to UW to 80% of the purchase price ($124,500) if the seller concession is greater than $3500 than the leverage will be based off the purchase price minus seller concession, so 80% of $124,500-3750 ($120,750)

The leverage on the loan is 80% LTV or LTC, whichever is lower.

I'm just trying to understand this because I thought it worked out in my favor.  I got a house that appraised and by asking for credit I figured it was less out of pocket.  This might now affect my decision for a second property with this lender. 

If someone could explain this better it would be appreciated.

@Jarrett Mel Williams

I feel your pain!   This is the kind of information that you're not going to find in the books.  I get that they talk about all of these creative ways, but it's not applicable to everyone.  I was in the same position as you, and I didn't want to get involved with a partner due to the lack of my experience.  So I basically did what I could to save up enough capital just to get started. Wish I could provide more input.  Best of luck

@Tom Hovind thanks for the response.  I'm pretty much thinking the same as you.  I guess I just needed to hear it from another person.  This is my first investment property so I have a slight connection to it already since I have already laid out money for inspections and appraisal.  The numbers still seem to work, but as mentioned I'm sure the engineers cost will be more than the $2500 credit and hoping it doesn't scare of the seller.  I guess at the end of the day if that's the situation it wasn't meant to be.

@Zachary Scott hi Zachary I’m located in Easton and just working on my first property to buy and hold in Phillipsburg, NJ

Hello,

I knew this would be the place to come to for help.  Let me know what everyone thinks.

I'm in the process of purchasing my first buy and hold property.  I had an inspection done and I knew there was some concern about a sagging roof, some old termite damage, and an old stone and mortar foundation.  I was also able to get the previous inspection report from two years prior to compare and it doesn't look like much changed.  Anyway I wanted to know your thoughts.  I'm setting up to have a structural engineer review the property which i've never used before they run about 850-1000 for the inspection and will give estimates.  I also understand that the seller is offering me a $2500 credit but no inspection.  What is everyone thought on structural engineers  I feel like it will give me  a piece of mind knowing what really needs to be done, but at the same time I don't see the sellers going much lower if the repairs are expensive?

any help would be appreciated

 Thanks Michael, I kinda figured after reaching out to a couple of lenders this was gonna be the average.