All Forum Posts by: Nuhan Demirkan

Yes, the customer profile. Will you be selling or renting these? In either case who would be your prospective customer and how plenty are they in that region. You don't want to be stuck with an undesirable property. Assuming the numbers pencil out.

I used to rent to college students and rented at differing rates based on the length. Perfectly valid.

David, 

It has been said that "everything works, nothing doesn't". There is no magic formula or silver bullet. Every market is different. Just start, you'll figure it out as you go along.

Good luck,

Ron, 

1- I assume your lease has a clause that states "any damage to the property due to the tenant's negligence....", I would copy that portion of the lease, attach the bill and send it to them. You have to give them a bill if you want to be compensated,

2- Did you call your insurance company to report a claim? You may get a portion paid by insurance,

3- It is my policy not to extend a month to month lease for more than 2 months after the lease expiration. I like (so does my banker) a minimum 1 year lease. If there is a problem (like you have now) I can sue for the entirety of the lease, not just for the month.

4- You set the tenant's expectations by sticking to your rules or by relaxing them. My advice is to be a very good landlord by quickly responding to their legitimate requests. But at the same time let them know this is a business and you mean it, nothing personal.

Good luck

Maureen, please put the brakes on. I would not recommend any of your suggestions/thoughts. First of all if the house had major structural issues you don't want it anyway. You are not looking for a distressed property for fix and flip you want a nice home for your son. A cash purchaser couldn't purchase bankruptcy and divorce houses either. Get your son pre-approved by a lender on his own, I'm assuming you are a licensed agent, you mentioned your broker, find a nice home he wants to live in and write the offer. Because you are not looking for an investment property, you can pay a little more than a cash purchaser if you have to. Look to buy from an equity seller not from a distressed seller. No hard money lenders, no IRA's, no cash purchase by you (you don't have all of it anyway). I think you are too emotionally caught up in this. Take a deep breath and do it right. No reason for risk.

Conventional Loan is for long term, Line of Credit is for short term. Don't use line of credit for long term.

Kelsey, I would send it to LLC's. Most of those are investors who have LLC's for asset protection. Depending on when they purchased the property they could be disappointed wanna be landlords. I would skip the bank owned (REO's).

How did you structured the deal with the seller? Because if you are having difficulty getting banks to finance this property so will the other would be buyers unless they were paying cash. And a cash buyer probably would pay much less than you. Private money is usually for short term financing. You may want to offer the seller 30 year amortization and a 5 year balloon. During which time you can hopefully find a more permanent financing. Good luck!

What is the end game for the property you want to purchase? Are you going to flip it or keep it? If you're going to flip it I would suggest to take the higher interest rate for short term. This will ensure you have enough cash to rehab the property (hopefully). If you're going to keep it take the long term fixed rate. You can do a cash out re-fi at some point in the future but be sure to leave enough equity for property to cash flow.

Mark, I like and use the multiple options close also. But I don't see your returns for each scenario (ie: Cash-on-cash, NOI, etc.). That would make a big difference in which option is best for you. Also is the seller an equity seller or a tired landlord? That will effect the strategy as well. Finally, I rarely negotiate the sales price. Focus on the walk away money. Does the seller have a mortgage you can service? Is the house fully paid and what are the sales costs if the seller went on to the open market (ie: Commissions, repairs, seller help, etc) all of which could be deducted from the sales price.