All Forum Posts by: Raven Starr

Mahalo for your help. Yes you're right, they are making the deposit non-refundable. My absolute goal is to close the deal but I have a hard time justifying the risk of loosing my deposit if something out of my control is the reason for not closing. The list of questions you left me with were very helpful. This is my first multi-family and a big purchase for me. I would feel more confident with their terms if I was a seasoned multi-family investor and if I had closed on a deal with the lender before... but it's all new. I'm learning a lot, and enjoying the process. Like you said, definitely not for the faint of heart lol. I appreciate your advice. 🙌🏼

 Thank you for the reply! It's comforting to hear that it is fairly common.I do understand where they are coming from. I really want the deal to close as well, just not be out a full deposit. I love the idea of buying extra time/an extension. I will be submitting a counter and feel more confident if an extension is an option. Greatly appreciated 🙏🏼

Aloha 🌺

I'm so happy to be apart of this mastermind and I'm hoping to get some insight on a deal. It's my first multi-family deal so I am a Rookie and I greatly appreciate any help I can get with this scenario.

The sellers have counter offered asking for an additional $50,000 earnest money deposit after the inspection period. If I move forward after the inspection period is over and my lender is not able to close on time, I would loose my deposits (total of $175,000).

I don't feel that this is a fair since my lenders ability to close on time is out of my control. I have been told that this is common in commercial real estate.
The loan is commercial but it's still a residential multi-family deal. Either way, is this common practice, for the buyer to forfeit their earnest money deposits if the lender doesn't close on-time?

Huge Mahalo for your guidance and sharing your knowledge 🙏🏼

Would you go through with a deal if the sellers counter offer states that they will not provide a disclosure statement? (According to their counter, it's not mandatory since its over 4 units). I'm interested to know if you've ever accepted an offer like that and if your own due diligence was suffice. Mahalo

Aloha Chris

I rent out rooms as mid-term rentals and hope I can help. 

A private entrance and bathroom is definitely ideal and you can charge more for it. 

I'm sorry I am not familiar with the West LA area but there is always a need for housing. 

Since it is a longer stay, the more live-able you make it the better. I recommend knowing who you will be renting to (your ideal guest) and catering to their needs. What are others providing in the area and what can you provide that adds more value? EX: remote workers need a desk and comfortable chair. Understanding who you are targeting as a guest is key. 

Also, if you have shared spaces such a kitchen, you will need to have rules and decide how you are going to manage the cleaning etc. 

On-site laundry adds value and extra income. I recommend coin/credit card operated machines. From experience, if laundry included in the rent you will have people doing a full load for with just one T-shirt in the wash, leaving their laundry in the wash machine for hours and your water and electricity bill will most likely go through the roof (I learn't that the hard way). 

Feel free to message me anytime if a question pops in your mind or you need a help in anyway! Bets of luck with your investment and new adventure in mid-term rentals :) 

I hope the meet up went well! I just seen the post, so I missed this one. I'll keep my eye out for the next one and look forward to attending it.