All Forum Posts by: Sergey A. Petrov

Doesn’t matter what the reason is for early termination. The tenant is responsible through the end of the lease (plus, most likely, advertising, leasing, and other expenses you may incur trying to find a new tenant). You are responsible for getting it on the market and trying to release as quickly as possible. If you think it’ll rent quick, you could agree to a buy out of, say, 2-3 months of rent no questions asked 

All things equal I'd take the 5/1 ARM and watch the rates over the next 5 years

Better pics with better lighting and blinds open. Pay a professional photographer a few hundred bucks. Pictures sell much better than words

Unless you are 100% sure the offer is fair market value, I’d have it appraised on my own. Otherwise, proceed with the transaction but make sure you know what will happen on the chunk of land you are selling before you sign. A ten foot concrete wall in front of your place might not be all that welcoming which may require you to do something else on your property. That should be part of the negotiations - “Dear City, you will be doing X on the portion of my property you are acquiring. That will require me doing Y on the remaining portion of my property. That Y will cost $Z. Purchase price should be increased by $Z”. Hope that makes sense 

@Jason V. - it sounds like you don’t have an agent on your side. It also sounds like the buyer has an agent. That agent is already likely working both ends of the transaction since you have no representation (unless you are a seasoned investor and have bought and sold dozens of properties). The chances are your house would’ve sold and closed by now with you netting more than you think you’ll net if you hired a professional agent to help you sell it. Lots of ways to negotiate a transaction that makes everybody happy but you have to know what you are doing.

Quick back of the napkin math with very limited details tells me your extra payments on the points plus higher rate and PMI will match your initial extra 12% downpayment 25% vs 10%+3 points) in about 7 years. So either pay that cash upfront or monthly over the next 7 years. What will you do with that "12% cash" in the next 7 years? I say you can put it to use elsewhere even if your cash flow is not as great initially (and should improve as rents increase)

I'd never advise my client to do it. I would, however, as required tell my client/buyer that the seller made the request and you advise against it. If it were a personal deal, I'd consider it subject to a second deed of trust or a signed confession of judgment with a signed quit claim deed that I could record, provided there is enough equity in the property, with a price reduction or some other financial or other incentive to me. But my risk tolerances are generally higher than average...

nothing is impossible! I've never personally brokered commercial real estate (have bought and sold and have a long standing relationship with a local commercial broker who represents me on those) but I do know that it is a different game. The bulk of commercial deals are off market so it all comes down to relationships. If they hit MLS, loopnet, crexi, etc, they are almost never a "deal" anymore... That said we are under contract on one and it was on MLS... It pencils and we are now past all the feasibility and due diligence. Just waiting on the lender to finish their end of things.

There is a question of legality and a question of lending guidelines. Lenders have a qualification restriction on how much of a “rebate” one can receive from a seller and what that “rebate” can be used for. This varies from lending product to lending product.

Mortgage and taxes is just the start. You have maintenance, vacancies, management fees, insurance, and a handful of other expenses. With that said, there is investing for cash flow and there is investing for appreciation. Weigh both and see if at least one aligns with your overall goals and plans. You may cash flow $1k/year with zero appreciation or appreciate $10k/year with zero cash flow