All Forum Posts by: Amy A.

@Cody DeLong Oh crap, Gary was my go-to guy.  I did 5 commercial loans with him.  Just emailed him last month.  I'm sure somebody will snatch him up and I'll go wherever he's hired.  It's time to refinance anyway.

You 11 unit wouldn't by any chance be in Windham?  

Contact Gary at the Auburn branch of Camden National Bank.  If he can't help you, contact me and I might buy it and give you a finder's fee.

@Brian plowman thank you, I will call him!

The eviction process is a long one, so you might as well get the ball rolling even if you never intend to actually evict.  They should be receiving social security, disability, military pension... fixed incomes.  I don't understand why paying rent is suddenly a problem if you haven't raised the rent.

Also, it sounds like they and their dog are destroying the place through neglect.  I just got back an apartment where the dog was never let out.  The odor was incredible.  I don't know how people can live that way.  Their quality of life must be suffering and the eviction notice might be the impetus to get their family to take the situation seriously and help them.

I've been using the same insurance agency for many years, but they recently changed the company name and staffing.  I should have asked more questions when the new agent told me she had found a less expensive company to insure my current project.  I just got the policy in the mail and it's called a "Commercial Inland Marine Policy".  This is to cover a single family home about an hour from the ocean.  

I've read the policy and they added the house as an endorsement.

My question is, is the new agent incompetent or has she found a brilliant loophole to save me money?

I'm a bit skeptical since it doesn't include liability coverage!  I've been working on this house for a month without realizing I'm naked!  I've always had high liability coverage - every single time.  I didn't even think to ask for it because it has always been included in my policy in the past.  What kind of insurance agent would issue a policy without at least a discussion of liability coverage?

This goes to show - even experienced investors can make mistakes.  Ugh.

Look up Corey Scott with Merrimack mortgage.  I have done 3 loans with him.  He' on BP but I can't get my phone to tag him.

@Devon Carlock Yes, you do have to qualify for the HELOC based on your debt to income ratio, credit score, and appraisal. You also get a better rate if it's your primary residence. Also, don't forget that if you rent your house for more than 3 of the last 5 years that you won't qualify for the tax exclusion available for primary residence!

I don't know if I was clear in the podcast about how I utilized HELOCs and commercial financing.  Honestly, I was expecting them to ask me more about managing rental properties and all of my crazy tenant stories!

We used the HELOC on our home exclusively for purchasing flip properties. That's because we didn't want the HELOC tied up in one property forever. The profits from the flips became the down payments for the commercial loans we used to purchase 5+ family properties. These loans are fixed for 5 years and adjustable thereafter.

Once my business was established and I had 2 years of tax returns to prove my rental income, I was able to purchase some 4 unit properties with 30 year fixed rates.   Also, keep in mind that the underwriters add depreciation back in, so even if you have a tax loss on a property they may count it as income.  If my husband or I had regular jobs, we would have qualified for 30 year fixed mortgages much sooner.

One point to keep in mind is that my husband had a good job when we qualified for the HELOC. Keep your job and save up until your real estate business is established! He had the steady job and I was able to manage our projects and find deals and tenants. Once the rental income was dependable, my husband was able to quit his very stressful job and start his own engineering consulting business. At that point, we knew we would be okay financially regardless of how his business did. The rental income gave him the freedom to take the risk.

LOL, everybody thought it was a midlife crisis when my husband quit his job!  We had actually been building up the "Free Mike" fund for some time.  It really wasn't about the money for me - it was about saving my husband's health and happiness and allowing him to enjoy our children before they grow up and move away.

I never have 3rd party inspections because I either buy from banks or buy low enough that I know the seller can't or won't reduce the price if I find a hidden problem.  I always assume it's going to need a lot of money put into it.  Remember, inspectors can't tear open walls or anything like that to tell you what the wiring looks like, if there's rot, etc.  If there are possessions in the way it's even more difficult because often they won't move them.

If the inspector suspects there's an issue, he will tell you to hire an engineer to inspect it.  My husband is an engineer and he's not willing to take on that kind of liability for the relatively low amount people are willing to pay.  Not many engineers would.

One thing to remember is to step back and look at the property.  Is it crooked or slumping?  Is it on the edge of a hill that's eroding?  Common sense can save you a lot of time and money.

I have stripped lots of wallpaper.  The difficulty really depends on the type of wallpaper and what's beneath it.  If the wall was painted first, it's much easier to get it off and will peel off in large pieces.  If it's bare wall, you often scrape the sheetrock paper off with it and need to patch it.  If it's unpainted horsehair plaster, you'll end up with rough spots as well.   If this is the case, you might as well spackle the wallpaper seams and just go over it with Kilz because you're going to end up spackling anyway.  

Also, if the wallpaper is from the 90's and has a plastic top layer, it's a real pain to get off because the steamer won't soften it unless it's really hot.  You have to go over it with a tool that punches little holes in the plastic.  However, you might damage the sheetrock if you press too hard.

If you are going to spraypaint, you should cover the windows with plastic even if you don't spray near them.  I've spent too many hours scraping paint off glass because of this.  Also, I paint the walls and ceiling the same barely antique white color.  It looks good and saves a lot of time.

Yes, all this will take time, but you can listen to BP podcasts and it will fly right by. 

Look up Todd Settle.  I think he's on linked in.  He's a hard money lender.  There is also Milk Street Capitol in Portlland.  Also, if it's a good enough deal I would buy the contract from you.