All Forum Posts by: Nick Ferrari

@Ned J.

I actually agree with most of what you're saying. The only thing I disagree with is your statement about paying off a loan. I do think there are many benefits to paying off a loan. Let's say I own a $250,000 loan with a conventional FHA loan around 3.5-4.5% interest well with interest now I'm closer to 400k on what I owe.

We should always remember that your home loan is your principal and interest that 250k home isn’t really 250k it’s more like 400k that’s what I would actually pay for if I made every payment on time during the lifeterm of the loan.

So every time I make a payment directly against my principal in the beginning of my loan I am actually saving myself a lot of money. I put 50k towards that property I mentioned earlier directly against the principal. In doing so I:

1.) Took seven years of payments off of my loan

2.) Saved myself 43k on the total cost of the loan that’s close to 85% return on my cash investment.

Now it’s careful to note I don’t think it’s the end all be all solution. For example I don’t think you should make principal payments towards the end of the loan. At that rate nearly all of your money s being invested towards the principal and you’re not saving as much on your interest or decreasing the lifetime of your loan.

Long story short I think there are advantages and disadvantages to any path you choose, whether that be 15 vs 30 vs paying off your loan. It all depends on what you’re trying to accomplish. Just make sure you understand the pros and cons to Both and choose what’s best for you and personal situation.

I would Highly recommend for rent collection services. They have many other features which I’m not as familiar with but their rent collection is free. It takes 5 or so days for the money to deposit but there’s an option to pay a fee to get it faster.

Also very easy to setup for both you and your tenants...I think having an unbiased third party collection service, like cozy, is the best way to collect rent. I’ve noticed a sharp decline in late payments & defaults once you put them on ‘Autopilot’ mode. You never get the hassle of someone being uncomfortable giving their banking info for a direct deposit service either.

They can’t see your info, you can’t see their info. It’s a no brainer.

I am also laughing to myself at this point.  What are you talking about?  Let's just chalk it up as a misunderstanding over text and move on.

@Jim K.

Alright no point in this continuing this conversation for some reason you’re not answering any of my questions. I say again what is your point and why are you trying to accomplish? Thats what I was trying to ask?

Also when did I call you a racist? Anger management issues? Or any of those things. I’m pretty sure you pointed the racial card at me and Said I was delusional and then questioned my experience when I said I live in Allentown which is not an urban area.

Look just agree to disagree I don’t know where you’re going with this. It’s without a doubt the strangest conversation I’ve ever had on BP.

@Jim K.

@Jim K.

Alrighty. Allentown is an hour from Philadelphia I live in between and manage properties in both. Philadelphia has a population of 1.1 million. The Lehigh Valley (Allentown and Greater Allentown area) collectively has a population of 600,000. Bucks county the county I live in has roughly a similar amount. So yeah I think I can make that statement with a fair amount of confidence in saying I have experience In urban areas that have a whole host of people living inside of them. Yet somehow I am delusional...okay?

I truly don’t understand what you’re trying to say when you ask me let’s play a game which property do you think the black guy lives in, ones $225,000 and the other is $25,000. I have managed properties under 50k some black people Live in them some white people live in them some Latino people live in them as do Asian. There are Asian neighborhoods black neighborhoods white neighborhoods.

What I’m failing to grasp is what your point is and why it has any relevance on this forum. Why not just take your political discussion and name calling somewhere else?

@Jim K.

Lol I’m the racist after you just made that comment? I don’t know? I manage plenty of properties that are in the inner city which white poor white people live in, who cares and why does that matter what race they are? Calm down it’s a forum for real estate investing not whatever you’re trying to turn it into.

@Jim K.

Yeah I mean we’re now talking about racism and xenophobia?

Where did this come from? These forums are getting worse and worse. Just stick to real estate investing please.

@Pat L.

Yeah maybe it’s just specific to your market but as you can see most of the people on this thread appear to be on the opposite side of the aisle. Maybe I should invest where you do.

By the way what does AMP mean?

@Pat L.

Yeah I disagree. Your down playing tenants high standards saying no one cares...maybe it’s just my market and my properties but my tenants almost always care. I have had more headaches having an unprepared unit over a prepared one.

You’re also making a big leap saying the property will sit there empty for 30-60 days. Here’s what you do. Have preloaded photos from the prior rental posted. Put a disclaimer on the bottom of the add explaining by these are old photos. Create times to show the property a day or two days after move out. Same day as move out hire a cleaning service to clean your unit. I usually have people moved out by noon so that should give plenty of time and then I already have prepared tours for next day. Have a decision on which tenants will be moving in and then lock them in on a set of dates ASAP. Most of my properties are well maintained and on the upper echelon of rentals in the area so that usually creates more competition and a sense of urgency so they can ‘ get it before the other guy does’.

I usually have my property sit empty of 2 weeks +/- 1 week. Never have I gone past 4 even in the middle of winter that has never happened.

I’ve personally tried to go down the route of showing units off before the prior tenant moved out when I first started out. I would recommend not doing that.

While it worked out it was very sloppy and yes my tenant moved most of his stuff out and cleaned his unit but it’s just not the same as having a professional cleaning service and making sure everything is spotless.

It’s all about your turnover, have your tenant moved out and when that last box is out the door cleaning crew is on their way in.