All Forum Posts by: Ron Flatt

Podcast 77, is a great one to watch.  I also as I go through the house I find deferred maintenance, you have to be careful not to nit pick the house and offend them.  

develop the relationship and let them know you are there to make it happen now.  Y

My daughter is in Air Force and she lives in Converse.  Schertz is a good market,  so they may think it will sell fast. 

 The advantage you have is that you are there now and they will not have a bunch of people walking through their home.  Doing business with you will be done quick and easy, 

Great Tenant?  Why not give the tenant notice, then move?  

Yes it is business, but also as landlords we want to make sure we give our good tenants the ability to find a new place instead of rushing them also.  

I prefer to err on the side of keeping a fair landlord reputation.  I have individuals wanting in my B and C properties, so I can pick and choose my tenants.  

Just my thoughts.  

Needs some pop.  I agree with Kevin the roof does not help, but a Bright white might give it some nice pop.  

I have found any time that you have washer/dryer connections, you have to inspect more frequently.  Tenants do not report leaks and/or the equipment itself is leaking, causing problems.  

I would make sure tenants know they are liable for water damage.  

I admit mine are C units but I found the same in my B unit I just purchased.

If the cabinets are in good shape, clean them up.  The counter tops, sometimes some preformed counters are the best for C and B- properties.  It cleans up a Kitchen nicely, easily installed.  

Most Kitchens will eat up the budget you have.  

If possible, get the hard money loan for a longer period of time.  6 months is tight and you want to look for the unexpected.  

Ben has some great points.  The first thing is to make sure reason for sale and his intend with the sale.  

I like to give choices: 

1st:  an owner finance, with preferably as low as down payment as I can get and still get a reasonable interest rate.  (Usually I give a balloon payment at the end 10 years.)  this is the highest price if especially if you can get the terms you want.  

2nd: Owner carry back a second, at interest only for a period of 5 years, give or take. (Note some lenders frown on sellers carrying back a second, others do not care because they have the 1st at 70-75% ARV.)

3rd:  Least amount of money, but he has his money up front.  He will save real estate commissions and the time.  (after the sale he can always reinvest with you on another deal.)

I put an offer in 4 years ago on a property, that was very low.  The Realtor presented the offer and they just said no thanks.   2 years later, I upped my 2K and they had to carry half the note for 2% interest for two years.  I liked the deal, still like the property.  Have one of the 3 original tenants, but have raised rates as I improved it.  

Make your offer, you may get a counter, you may not.  Do not ignore your numbers, If this deal passes, another one will come along.  

Good luck

where are you getting the 130K appraisal?  The tax roles are not a good indication.  I have 100K properties valued at 75k,  75k appraised at 48K,   and a 40k property appraised at 68k.   I have tried to fight the last one, no way in ...... that I could get 68k for it, but they say that I bought it way below market and my renter has improved it.   LOL.. it is a rough trailer on 5 acres.  he patched the roof and put up a barbwire fence.

Isiah Ferguson, has a great point.  I was spoiled by my old banker.  He realized my income as a landman is very sporadic and can have some rough dry spells, but he also understood, I took care of my lenders.  

The banker who took his place, wants to play by the book always.  He doesn't like to see income go from 6 figures to low 5 digits.  He wants to go by purchase price and his evaluations are always around the tax appraisal districts numbers, which are usually low.  Debt ratio is a big issue.  

Find a great banker, but realize they move on, so always keep your options open for new creative thinking lenders.  Sometimes you have to help them see the big picture.  That is where your numbers need to show, you are allowing for vacancy, maintenance, unexpected expenses.  Let them know what your outs are.

The foreclosures that I have purchased, seemed to go faster and I beat out others because I offered cash.  I always do something with the property, whether it is a rehab, or just paint.  I do something (putting paint on the pig) to justify a higher loan amount.  

I then get it rented.  When I go to lender, I will point out that I have made improvements, I have a tenant with a lease and provide some comparable properties to ask for a larger amount.  

currently bought SFR foreclosure- $53500. after misc expenses and rehab, I will be all in $72K. I already have comps in the $130K range. I will be asking for 75% of ARV. That gets my cash back, some extra pull for the next deal and working capital. Rents will cover expenses, mortgage, including vacancy and maintenance. My bank changed bank managers so he will try to pull me down on the amount, so I have had to step out to other lenders. My credit union has expressed interest as well as several individuals here on BP