All Forum Posts by: Remrie Arrie

Carlos, Jon, Steve, and Joel, you all make great points. And I think the idea of having Dec, but more likely Jan as the free month being a great idea. I'd rather pick Jan since that's the month I know they would fall behind (Christmas and New Years). I can even advertise that as my gift to them. And/or if I felt I should or need to, I could adjust the rent upwards.

These units rent easily at $400/mo and can rent for $450, so making it $433 to factor in that free month would be very reasonable. Although I'd be surprised if it wasn't so obvious that $33 X 12 = $396.

I dislike being underhanded, sly, or in any way appear dishonest. That's not in my nature and I'd like to pride myself on integrity. It would be nice to have residents who fulfill their obligation, but at the same time, at least I can try to implement other means in which a resident might be able to save money or be able to pay rent in a more convenient way.

Definitely need more details in terms of actual numbers. But a favorable loan for the seller might be offering to pay 10-12% interest only payments amortized over 30 years with a 7 year balloon. It can git your foot in the door, but you'll need to have a strategy for refinancing before 7 years. It will take 12 months before you can get a conventional loan.

Down payments are typically high at nearly 50%. That gives the seller the ability to sell the note if they want rather than wait 7 years.

Otherwise a combination of both conventional and hard loan could be done if you can qualify and structure it properly.

Great point, Wayne!
You too, Chris.

Certainly nobody forced her to leave.

It appears for future prospective residents, if they are going to get first month's rent free, that we specifically outline what forms of penalties there will be for them taking advantage of our discount. And include some favorable clause along the lines of: if they don't stay for at least 6 months, they are liable to pay for that first month plus additional penalties for breaking their year lease.

Here's an idea.... Can we seek repayment in full from the low income housing program? They are technically responsible for our tenant breaking her lease by approving her for low income housing; effectively "stealing" our tenant. So would it would be reasonable to seek compensation for damage? This being the "government" they ought to be able to pay us in full immediately.

Hey, everyone. I simply want to say thanks for sharing so much knowledge and insight. This is a very eye opening discussion.

Hi, Thomas! You got style! And congrats on finding a partner who is also involved with both you AND real estate! She will make a huge difference, especially when you work two jobs.

As for finding buyers, it depends on what the buyer would buy.

But a few sources to find buyers
Bandit signs
Direct Mail
Previous sellers (who in turn buy from you)
online lead generation (various strategies)
Social networking (a part of the previous)
REIA groups
conversations with anyone face to face.
Talking with business owners
General mail advertisements (an entire neighborhood)
referrals

the list keeps going on. You can still technically knock on people's doors.

This is just a guess, but: It sounds like if the property/LLC and everything went south, you would be on the hook for the liabilities as an individual.

I am not sure if a bank would let you transfer the property AND debt obligations into the LLC and allow you to file only a corporate bankruptcy if the whole thing fell through. It might be tough to defend in court if it happened.

This is definitely a question for a lawyer, CPA, and your lender

Maint'/repairs to get them rent ready.
In the future I'm going to add N expense column called "dumb luck" under "other" :p

Thank you, both.
I feel honored to be greeted by you both. :)

Also, thank you, Derek and Jon.