All Forum Posts by: Mark H.

I found a property in which the owner only carries a HELOC with USBank. Owner hasn't made any payments on the loan for 4 years now. Loan balance is $80k. We recently called USBank and asked them what the deal was. They pretty much told me that he could continue to make the payments or they would settle for $40k withouth us even asking.

The ARV on the property is around $70k. Client wants $10k to get out of the deal. There is like $5k in repairs.

The deal works for me if I could buy the note somewhere around $30k.

Then the deal would look like this:
$30k (HELOC settlement)
$10k (seller)
$5k (repairs)
============
$45k total cost

My questions are:
a) Has anybody experience dealing with USBank?
b) Would they take $30k considering that there is no first mortgage?
c) What is the best way to approach the bank on selling the paper?

All comment and input is appreciated. Thanks in advance.

The bank is unlikely to accept a short-pay if the seller is getting cash out of the deal. If the seller agrees to walk with $0, possibly.

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Is there a cash penalty in your lease for either violation?

I actually allow pets (with a deposit), but my lease specifies a penalty for bringing them in without permission. There's also a clause that I require the tenant to initial stating that pets are never "guests". No pet sitting, watching grandma's dog, etc, since that seems to be the method most tenants use to sneak in pets.

I'm curious if you're the one leasing this property, or if there's a pm in the middle?

When leasing a property, I go over the entire lease with the tenant - there's no excuse that they weren't told very clearly what the expectations were. If they violate the conditions of the lease after that, it's more of a respect thing than anything else, and all bets would be off.

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Be aware that those lists can be less than worthless as well.

I used to live in a 16 unit apartment years ago - I checked the list after living there over a year, and found that there were three offenders that listed that complex as their residence - none actually lived there.

Really creepy and unfair for the actual tenants in those units who had no connection what-so-ever to the offenders.

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Originally posted by David A.:

Mark, I am trying to better understand how to use these convenience checks. I get them 2-3 times a month from discover for 10k and 12k no interest for 12 months. Would i be able to deposit these into my account to use as proof of funds. I have some funds set aside and an extra 20k could put me into the game to offer cash for some fixer uppers around my area.

Drop them into savings - many banks will put extremely long "holds" on them, some won't take them at all. But after it's "cleared", it's your money, it's cash, and it's "available"..

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Originally posted by Uwe K.:

Do you then keep a stack of older keys on hand that you rotate FIFO when you re-key? The new keys they sell are pricey.
Also, have you ever had the problem of a lock "forgetting" the new key and it can't be opened anymore? Seems to be more common than I am willing to risk.

I am considering getting a pin kit and re-key myself. Easy to do, though it takes more time than Smartkey. But I want to avoid having to go out, drill the lock open and replace it when the tenant comes back home and is locked out.

Bienes: Good point, but it is as easy for them to replace the whole lock themselves. Happened before.

Get the "reset tool" and you can "re-program" the locks without a key if the tenant were to re-key them, or if they "lose" the program.

Buy the locks in "bulk packs" on eBay to get a bunch of different new "master" keys to program to. (they recommend a new key for programming)

And if you're worried about the physical lock being changed, they have screw-kits at landlord locks.com with a proprietary bit that can prevent that. Just a dab of locktite red on the threads & they aren't coming out without a fight.

I've never had one "lose" it's program, but I've always programmed to a new key, and taken my time. I could see getting a "bad" re-key if you were in a hurry, or didn't follow the instructions fully.

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Originally posted by Bienes Raices:

Originally posted by John Chapman:

Realize I'm just echoing what everyone else has said but you should always rekey. Kwikset smartkey is hands down the way to go. I do it on all my rentals and it has revolutionized the process. I'm that concerned about former tenants rekeying because you have to have the new key in order to rekey.

@John Chapman

I didn't mean former tenants, I meant the current ones...if you had nightmare tenants who tried to lock you out.

I use the smart key system too. If the tenant locks you out, after they're evicted, you bust one lock to gain entry, then use the "reset tool" to re-key the other locks without a key. It's about $20. Still a massive savings in time and hassle.

On my last rental, I changed the key while the home was on MLS/lockbox , then changed it again for the tenant at move-in, just in case someone copied the key in the lockbox.

It's awesome when rehabbing, because I can give a (trusted) contractor a key & change it the next day. You can often buy those locks & deadbolts on eBay in 10-packs to save some bucks and score a bunch of different "master" keys in the process.

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If your credit/income is good, and your debts are low, and the issue is truly just "reserve cash", there are still a few 0% for-a-year credit card deals out there that frequently send out "convenience checks". Chase does it a lot. Drop $20k into savings for a few months, qualify including the minimum payment, then pay it off before the interest hits.

If you don't have the down payment already, then there isn't an easy way, and if there was, you still shouldn't do it. Leverage + Unsustainable debt = bankruptcy.

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If goal number one for you is to build wealth, then you need to select a mate with the same goal. The rest will work itself out.

Any scheme, plan, Pre-nup, contract or agreement you can come up with has already been defeated by a lawyer.

Divorce is expensive, because it's worth it.

Pro-tip:

Accountants are hot !

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here's a pic of a tub surround with a window on the top - the sides and sill have been "wrapped" in cultured marble.

2 Votes

Originally posted by Bienes Raices:

Originally posted by Mark H.:

@Bienes R,

If the tiles are loose, they all need to come out, and the backer needs to be replaced. I commented in your other thread about using cultured marble - they can do cultured marble surrounds for tubs or for separate showers, they can handle the window with cultured marble, and it's likely to cost less and last much longer than any tile job. With cultured marble, you can use "green board" instead of the more expensive "hardi-board" as a backer and it won't ever get wet.

The only point of failure on cultured marble is the caulk lines at the seams, and there aren't many of those, since you're using large sheets of material. Around here, unless you're talking $500k plus homes, the builders all use cultured marble in new builds. It's cheap, it's durable & it looks good.

Mark,
Thanks--so I would not need to fix the window slope problem if I did a cultured surround? And I believe you said it costs about $500 to do a basic surround--does that price usually include removing the existing tiles as well (I know I will need to check with my local vendors on this too, of course).

They can "wrap" the window frame in cultured marble & set the angle of the sill for you. The price I got didn't include any demo or replacing the drywall, but that shouldn't be much, since your drywall is getting covered anyway. They just need a firm/smooth surface to adhere the cultured marble to.

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All Forum Posts by: Mark H.

Mark H. has started 3 posts and replied 476 times.

Post: Seller with HELOC only 4 years behind on payments

Post: Met tenant smoking & pet in the house

Post: Difficult to rent SFH with sex offender across street?

Post: Finding a down payment!

Post: Re-keying after tenant change?

Post: Re-keying after tenant change?

Post: Finding a down payment!

Post: Keeping rental property separate property during marriage?

Post: Tiles debonding--replace all or just some?

Post: Tiles debonding--replace all or just some?