All Forum Posts by: Sergio Aguinaga

@Wayne Brooks so getting a hard money loan on it is equivalent to getting a mortgage?

@Ned Carey other than knowing the LTV, what other things should I keep in mind when doing a refinance/finance? Is it always possible to do one or is it possible that they won’t give me a 30 year fixed mortgage so I end up not being able to pay the private lender.

@Daniel Rutherford How did you derive the 6k in hand and 96k on the note? Also, would it be refinancing or financing that I’m doing since I would have payed for the rental property in cash?

Hello. My question is pretty straIght forward. Say you find a good rental property and your private/hard money lender approves it. So you pay 20,000 and borrow 70,000 from a private/hard money lender for purchase and repairs. You get it rented out but how are you supposed to pay 70,000 back in 8 months? One option is to get a mortgage on it so they would give me the value of the home in cash in exchange for the mortgage? What other options do I have?

Hello, I have some questions about the process for having the property rented out, so here we go:

1. How do you make sure they pay the water bill? I already plan to have it included in the lease and agreed upon but doesn't the water bill follow the owner of the home? Can they still change it to have the bill under their name?

2. For those of you who still do applications in paper, how do you collect the application fee and photo ID? When showing the unit, I will give them the application, but how do I collect the application back? It seems like I'd waste too much time going back to the property to collect every single application. The workaround is that they can just scan it and email it along with their photo ID but I need to collect the application fee before I process their application. So what's the best way to handle this? 

Note: I am aware of online applications like cozy that makes sure they fill out and pay their background/credit check but the applications for those types of software doesn't cover everything I want to ask and Brandon suggested paper applications is the way to go so it being my first rental I'll follow his advice on that but I just need a robust way of doing it.

3. If an applicant gets denied because you think they're dirty or for any reason, and they do qualify for all your criteria, then how do you deny them?

Any help is appreciated, thanks (:

Originally posted by @Perez Leanne:

I have been using for several years and highly recommend RentPrep for tenant screening. They run criminal/eviction checks and call landlord and employer references. From a property management standpoint, I also recommend you require tenants to get renter's insurance and name you as "insured/interested party" to the policy. I also require tenants to pay via cozy.co (it's free for you to set up and free for them to pay) so I don't have to deal with collecting rent from tenants in person or dealing with rent being lost in the mail. Finally,  use an attorney for evictions. They can get the process started and finalized much quicker than if you tried to do it on your own. Good luck.

When they use cozy.co, since it takes 5 days for the money to arrive, are you notified when it's on it's way? Does it allow late fees to be 50 after the 1st day, 10 additional after each additional day, etc?

@Ned Carey I’m confused by the vocabulary used for auctions. There’s 3 types: 1. Auction with someone announcing a house surrounded by people and he speaks really fast, you know what I’m talking about. 2. Auction.com where you can bid on a house and pay it all cash. 3. Courthouse steps for foreclosed homes. All these 3 are referred to as “Auctions” as far as I know. Is this not true? Differences between all of them?

@Brenna Wood offer her an invitation to apply if she so wishes just so she won’t feel discriminated. Once she applies and actually pays background and credit check, you can send a denial letter of why she was denied. Most likely she won’t apply anyways but you don’t want to be a victim of being sued.

@Brenna Wood honestly, just read the book on managing rental properties by Brandon and his wife. It’ll tell you what’s a red flag, what to do, how to do it, how to screen and pre-screen, etc. The minimum requirements for example are: 3x rental income Good references from past landlords Current landlord reference may be inaccurate so use the others to better judge Check income by calling manager and verifying job stability, etc. Credit score of 600+ pass background check Depending on your requirement, but no smoking is a good idea. Check them out on social media, understand their personality. Check their car to see how clean it is. A demanding landlord or one trying to move in earlier than you can Isnt a good idea. There’s honestly a lot when it comes to landlording. I’m putting my first rental up in 2 weeks so I had to make sure I read the book to learn a good process to follow. Since you plan to rent it out in December/January, you have more than enough time to read through most of it.

@Matt Shields since you buy auctioned properties, how do you verify if they have liens on them? Asking a title company to run a check on every property you bid is too expensive so is there a better way?