All Forum Posts by: Rob Hakes

@Chris Seveney

Curious on this, would you try and hold the borrower responsible for this? Or do the work and forward him the bill?

Sounds a little messy.  

Is there any way in the land contract agreement to have the borrower be responsible for keeping the property up to code?

@Hunter Fitch

Everybody seems to add about 50 lbs of muscle, and a bit more venom to their bite when they are behind a keyboard rather than face to face.  You're right, it is crazy how quickly people can jump to attack a genuine question or concern.  We can also jump to the defensive pretty quickly if we feel a critique is an attack.

It would do everybody better if we were all a little kinder, but also less sensitive and so easy to offend.

@Martha Daisley

I have not done it a lot, but i did refinance a house in a trust earlier this year.  I did not even tell the bank it was in a trust, so when the title company saw it was in a trust they just transferred title to my name for a day and then right back into the trust after the refi was done.  Pretty seamless, but they did have to review my trust agreement to ensure i was the beneficiary.

They may be being difficult or lazy, or they may not be comfortable with a land trust. 

@Mike Moore

If you have experience in house flipping you already have an great in to note investing.  Have you created any notes after a flip?  I bet there is lots of opportunities to create a note via seller financing or contract for deed on a rehabbed property and see really awesome returns.

I guess its a good sign that haven't really had anything to post lately.  Both of my properties with Spartan have stabilized and have been getting consistent rent (even through pandemic) without any maintenance costs.  I think these buggers will actually be a boon to my portfolio this year rather than the drag.  THat feels good.

Hope i didn't jinx it. 

@Andrew M.

I will need to echo what @Caleb Heimsoth has said as i to am somebody that has been down the turnkey road for a few years.  Cashflow projections are too high.  You will have a few months where you see it cashflow over $200/mo but there are way too many things that can go wrong with a turnkey property that was purchased at top dollar.  

The taxes will increase.  If you are calculating taxes at $62 there is a good chance after a year or two the county will realize that you are not an owner occupant and you will lose that exemption, or they will just realize that they can charge more in taxes to an out of state investor that can't/won't come and protest.  

Also your mortgage rate looks a little low for an investment property, but i haven't looked in a while so i could be wrong.

On one property the taxes started at about $750.00 a year and two years later are at $1150 a year.

I was and am very excited about the turnkey model, but the numbers don't lie.  They are crappy returns thus far.   Really the only hope of having these be a really good investment is if i can see some good appreciation overtime.  That's not a really good model if you are planning on cashflow and the chances of much appreciation in these markets is sketchy.

There are other solid passive investments that have proven to be more stable with higher returns.

Remember when the 1% rule was the 2% rule?  About 4 months ago it was turning into the .8% rule.

@Bradley Ritter

I think immediately there may be a drop in performing note prices.  

Say a note has been performing for 12 months.  In the past you would pay a premium if it had a good rate and was clean.

Right now unfortunately past payment history doesn't mean much which should push prices down if a seller needs to get rid of it.  Or in other words, I wouldn't pay full price for a performing right now regardless of payment history unless you were fairly confident the borrower had a solid job and was not going to jump on the 'forbearance' train.

@Jordan Meyer

The reason we pay a PM is because we primarily need them to manage people.  This cant just be automated.  Any good PM already has a full array of automation in place for their systems, but a great one will know how to manage your tenants.  This takes a lot more than some fancy software.  I will gladly pay a PM 10% if they know how to manage my tenants.

Maybe a Deep Fake?  Totally bizarre.