All Forum Posts by: Ron Flatt

Ok folks, need some ideas. 

Purchased several duplexes in the last 90 days.  Was able to get financed through my local bank. 

I am now at the limit on debt/income ratio on properties. 

Have the opportunity to purchase a duplex, and 2 SFRs, the 2 houses need some work.  I have some payed off  property to use as addtional collateral. 

Need recommendation for either a long term (15 yr) or shortt term (36 month) financing without ridiculous fees or interest. 

My daughter is in the service and will be relocating to Missouri. I will be going up to purchase a house for her. She wants to go ahead and get preapproved for a VA or conventional loan. Her credit is very good. Please contact me if you are a lender or know of one in or around Whiteman AFB.

No, it is not a lease purchase.  I transfer upon the sale, with a General Warranty Deed with Vendor's Lien and Deed of Trust filed.  The commission with the realtor is half of his commission on the front end and then pay the remainder of the commission in two payments, one at 6 months and one at a year.  I put it in writing once and the subsequent deals were verbal agreements between realtor and myself.  

I have done a couple of these.  Basically, I gave them their 6 % commission, However, I pay half at closing, 1/4 at 6 months and the final quarter at 1 year.  
This helps the realtor, I do not have to pay out small monthly checks and the realtor gets a better check each payout.  Note:  This has only worked when the agent was the broker/owner.  
It can be done, but they need to know up front how things will be paid.  Then Make sure you pay as agreed, the out is if the buyer defaults, the realtor does not get paid.  The buyer has to be current at each pay point.  

this land is constantly shifting.  The individual who contracted the job, used a leveler compound, then floored directly over it.  lasted a year.  then I went in and used a carpet.  I do not want to put a lot on this property, because it is on my list to be taken down and replace with an 8 plex.  Just fighting with city on zoning.  
I own a duplex two doors  down and a triplex one block away, but they are wanting to say it is a sfr area.  My duplex and triplex were grandfathered in.  So I have a little 750 sq ft 2bed 1 bath on 0.40 acres.  The renter has trouble keeping that much mowed and I just need to keep it rentable until I can build with a proper foundation.  The House will be part of the parking lot.  

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I see your point, but I have never had an issue with moisture. Have not considered trapping moisture wicking up.  I re plumbed through attic, all waste is on outside walls and I took care of that.  I will check with some of the guys in the area. 

I do not put up with mold in my properties, so do not want any problems in that regard.  I have gutted bathrooms in new purchases.  treating the studs, replacing insulation, re rocking and then hardbacker and tile.   

I am going to put a different twist on things. 

First if you are a new investor and your not investing in your area, you are setting yourself up, in my opinion. 

If I was going to invest out of my area, I would pair up with someone who is in the business.  I would want a partner, and draw up the paperwork to have at least 2 exit strategies and a term limit of the partnership.  I would then have them be the boots on the ground, drawing from their experience and local knowledge.  I would want monthly books but later may be able to go to quarterly books.  I would want to visit their operation to see if it fits my needs. 

It helped me expand when others seen what I was doing and wanted to join in.  Currently, I have my own real estate,  have a flipping project with my children, and have two friends that want to be in rentals, but do not want the headache, (they think). 

If you want a closer outline, of what I do give me a message.  Usually, I want a 5 -7 year partnership, with guidelines to close out, (I only have one commitment for life, that is my wife) or to extent the partnership.  Most decisions will be made by local person, but major decisions of course would be discussed.  You want as much in writing as possible, because going in everything is roses and sunshine, however, roses have thorns, and there are droughts and floods in relationships.  You want to have as much covered as possible and be able to talk to partner without letting emotions or anger cloud judgement.  

I use LVT in my rentals.  Slowly but surely changing them over.  They are all on hardwoood floors or plywood subfloors.  they have been durable and seem to hold up under the tenants better.  Where I have used it in bathrooms, the rotting sub floor problems have ceased.  Moisture just cannot get down to the sub floor. 
The true test is going to be on a very inexpensive slab structure that the foundation is trash.  I am planning on over laying the slab with 1/4 plywood, then putting down LVT.  

Let me clarify.  I like to hold on to my properties, however If the funds can make more in another property, I sell.  The example I gave illustrated one.  I will use that equity, to purchase a duplex, that I had previously found.  It will give more cash flow, an opportunity to add value to a new property.  The only draw back was I am not able to close on the same day.  The duplex is going to be a couple of weeks after.  I spoke to my accountant and he said we would be fine. 

I am not suggesting selling just to churn your real estate.  It is to always reinvest, quickly in a property you like better, because of cash flow, the ability to add value, etc.  I am not in love with any building I own.  If I can get more bang for the buck some where else, I will sell and reinvest that capital there. 

I have done the refinancing route.  It works well, if you have let the equity build up and you are able to free up the cash to invest other places.  The key is to keep your money working for you. 

You have got several good responses on here.  You have to see how it fits with Canadian taxes and laws, then adjust your plans to fit.  I would try to make sure I invested my cash where taxes were friendly and the laws protected the landlord.  There are a lot of areas with rent controls and tough eviction laws.  Good luck

@Albert Thong

That is a good strategy generally speaking.  However, she said she had house hacked this home, wouldn't she better off selling the home and capturing the gain tax free.  Then purchasing another property having the closing time very close.  It is just a thought, always wanting to learn.