All Forum Posts by: Shelley F.

Its really funny ... I was just discussing this with a friend that is looking at land in Florida. She was the 'deep pockets' to a HML in California and lost a lot in the recession. I met her and she didnt want to do an owner finance. We ended up coming to terms that suited both of us...and have gone on to do many more of her 'foreclosed ' deals.

 Now she is at the other side of this and is wanting to buy with an owner finance...and asked me how I did it. The realtors tell her it cant be done. 

I reminded her of the steps we went through...

The seller needs to be in a position to carry..in other words, cant have a big mortgage to pay off

The Buyer needs to have a suitable down payment ( skin in the game)

The interest rate needs to be reasonable (ours is 7)

Term needs to be relatively short...our favorite term is 5 years. 

We went through a lot more but you get my drift...

When we first started talking I was not aware of just how expensive it is to foreclose...so I understand the caution.

Now...any investor friendly agents near Ormond Beach?

I just now found this thread...I was contacted in the same manner by John Botros and had the same cell phone issues. The message was all chopped up. He asked if I would prefer text and started texting. My loan amount was 'too small' but he said they would make an exception. Didnt quote rates. Wanted ten percent upfront and when I questioned that he said I would 'get it back' when the loan was paid off successfully. I went to the website and printed out the application and mailed it in.

Later he sent me a text letting me know that he didnt get my application. I told him I mailed it in. He was furious! 'Who gave you permission to do that?" He said.

Thinking this was fishy I called a friend who is a retired HML and asked him about the conversations and his advice. RUN! Dont answer any more calls or texts! I did just that.

Funny thing...just a few days ago I got my application back.."NO SUCH ADDRESS"

Doors on my rentals are driving me crazy! Since most of my properties are purchased in a distressed state of some sort, My first step is usually to secure the property and then start the trash out process. Doors can vary...old rotted wood ones are replaced with newer steel doors (Home Depot )

 I usually take the time to widen a doorway too if it needs it. 

Ive learned to remove closet doors after they seem to get trashed over and over. Creatively trashed. But Entry doors have never been an issue once I fix them up in the beginning. 

Until yesterday. Had a handyman at a place to check it out for some spring repairs, he mentioned the door was 'broken' as in kicked in. Broken door jamb and all. Of course, we are immediately addressing the issue, but it made me reflect on...doors.

Whats YOUR pet peeve in your rentals?

Hoarder houses seem to be my specialty too. This looks like it will turn around nicely

Most of my rentals are in small towns, and the tenants typically 'unbanked' I just have them deposit to a special account at the local bank. Others use erentpayments.com   I like the ease and privacy this offers and the charges to me are only 3.00 a month (I cover all charges) I have only had erentpayments backfire once.  I will NOT let them mail me checks.

Forgot to mention...the title companies dont handle the payments to the seller after escrow closes. In a few cases the seller has me send directly to them each month, another uses a 'trust deed' company (I am in California, so its called a trust deed not a mortgage) You might have different local companies where you are.

In my case the title company did not do the contracts, I did the purchase offer using Rocket Lawyer , sent a copy to the seller for her to look over and agree, then we both signed and sent this to the title company. Although I did not use an attorney, I am not giving legal advice, just relating what I did (and have done many times now)

At that point the title company took over and did the rest...took the earnest money, did the prelim, took the down payment and did the closing and recording. In the closing docs mailed to me (after recording) was the amortization schedule.

As an aside...on one other deal we handled it all outside title. I had researched the property myself at the court house and met the seller at the parking lot of the bank, with a mobile notary. We did all of the paperwork ourselves, including the grant deed . We walked together into the bank where I withdrew his down payment. I then drove (myself) to the courthouse and recorded the deed. This approach might not work in every case, but it was fine for this one.

Ive done several deals this way, but always used a title company. That way you will get a preliminary report that might alert you to other liens hiding out there. They can advise you on what they need to get an escrow account opened.The title company can provide you with an amortization schedule so you can follow along and see where 'extra' principal payments might be useful. By all means take along your contractor/handyman to look things over and give you an idea of rehab costs...but ask them to give this to you later in private. 

@JJConway , I did this post. I even forgot some stuff as it was tough to remember it all , it was so long ago. It was in 1990 and before BP (heck, maybe even before the internet) and I was an 'accidental landlord". This tenant taught me a very valuable lesson.

Its amazing what can happen in the following years. I was focused on another business and did not start investing in real estate until the recession made it affordable.

In the meantime, I devoured every book I could find about real estate and landlording, and when I discovered Bigger pockets I /made a point to read it every day and focus on land lording issues. I didnt do any of the paid seminars, just read a lot and read the forum posts etc on BP.

During the recession we bought a house a year, sometimes two, and I now  have ten. 

The main thing I learned? STUDY! Read BP, read the landlord /tenant laws that pertain to your state. Im in California which is very tenant friendly, so I make sure Im following the law and know it better than my tenants do.

Pay attention to simple repairs and maintenance. They can become big and expensive fast. I do NOT let tenants do any repairs, I have my own crew I will send over.

Pay attention to the KEYS...I change locks after every tenant and dont leave a key with anyone except a trusted friend.

I dont let tenants schedule repairs, I have them call me and I will send the appropriate person over to look/fix it.

Im sure others will chime in, my early, very negative, experience with a tenant may have kept me out of investing for a while, but when I see some of the same 'tricks' Im on guard. Someone on here called it a 'low level alert' and that about sums it up.

yep! 

Right now this isnt about me...this was 26 years ago and all I could see was my new equestrian center enterprise.  Landlording wasnt even  in my spectrum.  I only shared this as a way to let others learn from this experience.  It was a real learning experience. Its amazing what a 26 years and a legal education will do for you huh! I make it a point to know the law better than my tenants these days... and I laugh...one of the places we bought , and then decided to make our own, didnt have curtains so we went to thrift and cut up sheets. Cops soon arrived...thought we were squatters.