All Forum Posts by: Phillip Syrios

I don't believe you have to get rid of any info on past tenants, but I really don't know about that.

A service like this doesn't seem very useful though because almost no tenants will be on it. There are millions of tenants and only a few thousand would ever get put onto a database like this, even if they did you would only get info from one of their landloards, not a full history of them.

I have done this before, It can often be because their company is a sole proprietorship and really nothing more than a name they like to use to sound more professional. They have never set up a business entity or bank account and because of that they just use their personal bank account for all business activity.

Im not a wholesaler, but from my understanding people who wholesale usually deal with people who want to move quickly so I don't know why you couldn't. Maybe the better question is whether or not you should, it seems like a waste to start in a market where you cannot become an expert in.

I've really enjoyed Mr.Landlord of Jeffery Taylor. His conference wasn't the best because all his guest speakers were not the best, but everything he said was pretty great.

He has a few books out as well, I haven't read them yet but they are on my list.

It seems the only thing you are missing from them is rental history but everything else checks out really well. If a reference from the dorm they lived at works for your company then that would be what you should look to get.

I would normally ask for a co-signer in this situation but that doesn't seem very necessary as they make plenty of money and a co-signer seems unlikely at the same time. The other thing I do in a situation like this is ask for last months rent up front, with no rental history I think its a legitimate thing to ask for, just make sure its a policy for all your rentals when someone is without rental history.

This is a big red flag. If they cannot save enough money for a deposit then they are not finically stable enough to afford paying rent through an entire lease.

I don't know about Virginia state laws, but in Missouri, Kansas and Oregon where I am familiar with the laws you have to give them their deposit as well as a list of all transactions that took money out of their depsot within the timeframe required by law. If you do not do this you are required to pay back 3 times their deposit.

In my state we can take owed rent out of a deposit, but we cannot hold onto a deposit because we are expecting more money to come in.

I would say make sure they make at least 3 times the rent in take home pay. Also make sure they know that they are stuck together once they sign the lease. Often times young roommates love moving in with their best friends and then can't stand it 2 months later. Let them know they will be responsible regardless.

Also I wouldn't let them move in without a co-signer. And make sure that co-signer qualifies for your normal rental standards as well if not better (we do 4 times rent for a co-signer.)

Some banks, usually local banks, will offer a loan at 70%-75% of what you will put into the property up to the appraisal amount. They will put any excess funds into escrow and will release it to you once you show them receipts on the rehab. I don't have any experiance with this for a personal residence but we have done this with investment property before.

My company borrows money in first position at 9% interest only all the time. Its a number we can make cashflow in our market of Kansas City and is also a very solid return for the investor.

We always put our investors in 1st position and give them a guarantee against the rest of our company and make them an additional insurer in case there is an insurance claim. 9% return is a legitimate number for an investor to make work in a cashflow market, but the big thing to consider is if they will be able to make a margin on top of your return and what you will get if things go wrong.

Having some extra equity on top of your loan is very helpful, but having a guarantee against other assets in my opinion is more important. My reasoning is that if a tenant trashes the unit so much that the property is worth less than your loan, or something else hurts the value it's tempting for the owner to just stop making payments and let you foreclose. Hopefully the person your working with would want to protect the relationship but it sets up a bad incentive in that type of situation without the extra guarentee which is why we always guarantee our loans against all our companies assets.