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All Forum Posts by: Stan Hill

Stan Hill has started 6 posts and replied 180 times.

Post: Buying with credit card......can I borrow money for free, really?

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Lee Scarlett:

@Jeremy Jackson,

Very good. If you already have a handle on the prep work before getting to the money then you're good to go. I say go for it... The 0% time frame is ticking, lol.

Again, best of luck!

 Good one Lee. When I read the post, I was thinking: what are you waiting for???  :)

Post: Cheapest Way to Set Up Self Directed IRA

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93

Open a SDIRA if you are planning to add to the $6,000. I used @Brian Eastman, he's here on BP. He knows his stuff, has people to help you with questions after the sale and has helped me out with info on several occasions over the past 5 years or so.

To me, the only drawback is it can be tough to find non-recourse loans on an SDIRA. Ask Brian about that, I think he's got some lenders lined up if you need them.

Post: 33 Transactions in first full year!

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93

That's a heck of a first year! Congrats and best wishes for 2016!

Post: My First Big Deal!!

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Alan Williams:

Hey Guys,

I registered for this site a while ago and life took me in a different direction, but I have returned to real estate, and made my first deal!

Now this isn't a glamorous deal, but I bought my first pre-construction home in 2013 with the idea that it would appreciate and bring in some capital.

Two years later, I just finished refinancing and was able to extract over 30k!

So I always knew that I wanted to make money in real estate but never really realized that my first deal would be my own home ;)

Now I want to take the money I made on this deal and launch maybe a wholesaling business?  Any recommendations on what to do next?

 Congrats! Pulling out $30K is a nice first lick. You'll find the right niche, keep reading and learning.

Post: The 10 mortgage limit: is it 10 LOANS or 10 PROPERTIES?

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Chris Mason:

> Just to clarify, a 2-4 unit property would still count as a single property?

Yup.

And another reminder that 5+ unit properties are not included in the count.

 Is the qualifying on a 5+ different? I thought I read that at 5+, it's a matter of having the down payment and reserves, and the income from the property in question is how the bank decides whether to finance. Of course, that assumes good credit, etc. I am asking because my wife and I decided to go all out on multi-units over the next few years. I want to make sure I'm making the best moves possible.

Post: The 10 mortgage limit: is it 10 LOANS or 10 PROPERTIES?

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Wayne Brooks:

@Lisa Kohl No, that is wrong. The reg is "10 Properties that have a loan/mortgage". You could have 10 properties with 2 mortgages on each property, or one blanket loan for the 10 properties, both count as exactly the same....10 mortgaged properties. Not sure about the properties being in an LLC, with No personal guarantee.

 Just to clarify, a 2-4 unit property would still count as a single property?

Post: When and how to intervene in tenant disagreement/fights?

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Tammy Richards:

Update:

Thanks everyone again for the good advice.  It helped me take action sooner than I might have.

@Jeff Rabinowitz - gave 1st floor tenant 30 days notice yesterday - she was shocked as I think I had been so calm and pleasant with her that she thought she had an ally... happy it could happen outside the building.  Being a sole female landlord is making me familiar with a number of good smartphone safety apps.  When I visited my other tenants after, they  complained about the noise from the feud on the other side of the building.  

We'll see if she actually leaves... without a fight... already researching security measures... she's Section 8 so I'm hoping her fear of losing voucher will keep retribution down.  Also not going to rush into getting 2nd floor onto a 12 month lease until I can observe more about their interactions with other tenants.

@Jeff B. still looking for a good lease clause about tenant disagreements.  Also looking into soundproofing!

 Sounds like you are kicking @ss and taking names. I have a feeling that once your remaining three tenants see the PIA tenant get booted out and see they have new leases and a new Sheriff in town, they'll straighten up and you'll have less trouble. Well-done!

Post: Never take in strays!

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Nat C.:

This is an interesting story for home owners in Florida. I just went through 2 weeks of hell but I finally won.

I met a young couple who were unemployed and had no where to live. I allowed them stay in my house providing free food and accommodation for a month from November 1-December 8. I am renovating the house and they were supposed to do an hour of painting per day (which they rarely did).


On 8 December, we all moved to another one of my houses after the tenants moved out. I planned to spend 1-2 weeks repainting and fixing the yard. .


I told the couple we would be moving back to my other house on 20 December after the painting was finished as I had found tenants to rent the house. They protested because they loved the new house and it was closer to the city.


I told them that they didn't have a choice because I had already rented out the property. To my dismay, when I returned home on 21 December I found the locks had been changed and I couldn't get in. When I tried to speak to them, the woman hurled abuse at me through a window. I was in such shock I just left.


The next day I went back and she called the police stating I was trespassing. When the police arrived they spoke to us separately. The couple claimed they were tenants who had paid $1000! The police officer was amazing and he said he didn't believe her and freeloading in my house was wrong and it was outrageous to claim I was trespassing by entering my own house. However he was apologetic to me and said they didn't have the power to remove them as they had already established residency.


The following day I had someone pack their belongings and dropped them at her work and changed the locks to my house. The police then aided these scam artists to break back into the property by breaking the locks. I went into the police station to discuss this outrageous situation with the Sargent. She told me it was my fault for letting people stay in my house overnight and I needed to evict them through the court.


When I went to my house that night, the woman violently assaulted me as I walked through the front door and threw me on the pavement. I called 911 again and a different set of officers attended. I was battered and bleeding when they arrived. I reported the assault to the female police officer and the officer stated she was 'defending herself as I tried to enter her home'.

The officer told me I was not allowed to enter my own home. I was in so much shock and wondered at what point after I paid for and bought the home and tenderly renovated the house that it had suddenly transferred ownership to this woman's house who hadn't paid 1 dime.

I spoke to a bunch of lawyers and they all said I had to file an unlawful detainer lawsuit which would take several months to have them evicted. They also said it was too complicated to do without a lawyer.

I read through the legislation and found Section 82.045 of the Florida Statute:

82.045 Remedy for unlawful detention by a transient occupant of residential property.

(1) As used in this section, the term “transient occupant” means a person whose residency in a dwelling intended for residential use has occurred for a brief length of time, is not pursuant to a lease, and whose occupancy was intended as transient in nature.

(3) Any law enforcement officer may, upon receipt of a sworn affidavit of the party entitled to possession that a person who is a transient occupant is unlawfully detaining residential property, direct a transient occupant to surrender possession of residential property. The sworn affidavit must set forth the facts, including the applicable factors listed in paragraph (1)(a), which establish that a transient occupant is unlawfully detaining residential property.


I got together up an Affidavit, copies of text messages between us, my warranty deed and utility copies in my name and went back to the police station asking to speak to a supervisor. The first 2 officers I spoke to said they couldn't do a thing and I had to go to court.

Finally I got to sit down with a Lieutenant and argue my case. After presenting all my paper work and story and he went quiet and left the room. He returned 5 minutes later and said it was a new statute that none of them were aware of. They called the State Attorney to confirm everything was kosher and then told me to meet them at the house to remove the couple. I had been at the police station for nearly 5 hours.

Finally got to the house at midnight and there were tears and tantrums from this woman who figured she was going to get 2-3 months living in my house rent free. The police said she had to pack her stuff and leave or they would arrest her. 3 hours later they were finally out and locks were changed again.

god knows why, they vandalized the house. They poured buckets of paint all over the floor, spray painted graffiti and took a hammer to one of the bathroom walls. Its about $4000 of damage.

I know if I had of one through the eviction process I would have got my house with more like $30,000 of damage.

I also lost a NYE Airbnb booking for $2000. Onwards and upwards from here. Lesson is- do not take in strays and know the laws!

 Wow Nat, I'm feeling very fortunate compared to your experience. I trust your wounds were all superficial. You definitely paid some different types of "tuition" for this lesson, eh? I'm glad you dug your heels in and looked into the law. And I agree with your conclusion: don't take in strays. I'll add my two cents and say that people are generally where they are for a reason. I have found that helping out really doesn't help anyone. I hate to sound so scrooge-like, but it has rarely worked out for me or people I've tried to help.

My example is far more benign. I have long time tenants I inherited when I bought a particular property a few years ao. They were already paying a bit below market rent but I let that slide. The wife (they are an older couple) made a list of demands when we took over, including new paint and flooring. Frankly, the place is a mess. They've been smoking in there for 9 years. They have 3 dogs. I simply will not repaint and refloor under those circumstances. She wouldn't sign a new rental agreement. Two months in 2015, she was $100 short on rent. 

The bottom line for me has been to learn to simply stick with business as usual: tenants pay market rent, sign the lease, no smoking, no pets (I'm one who won't take either in rentals I initiate) and pay the late fees where applicable. If they can't do any of it, I don't need them as tenants.

As for the property I mentioned, we're going to sell it and do something a little closer to home anyway. This place is a bit over an hour away and in a small town. It's been next to impossible trying to find someone to do repairs. But that is another story.

Anyway, I'm glad you got the squatters out so quickly!

Post: The massive Real Estate bubble that's happening again (with charts)

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93
Originally posted by @Anthony Gayden:
Originally posted by @Vincent Crane:

The bubble is definitely different in each market this time around which is really strange to watch. Prices in Atlanta are right back to where they were before the crash, while Denver and Oklahoma City are now even higher than they've ever been. But then some cities like KC, Indy, Charlotte, still pretty affordable

I am relocating to Omaha soon, and I found out that the housing there is even cheaper than here in Tucson. The median home sells for $113,000 in Omaha. 

I just don't think there is another approaching bubble. The last bubble had real estate prices in almost every market across the country skyrocketing. This time, the only places where prices are going up very high are places where appreciation and home prices were always much higher than the rest of the country.

The last bubble also had a huge construction boom, and this time there doesn't appear to be near the amount of construction activity, especially in single family homes.

 Anthony, I also think the reason(s) for rising prices can be an issue. According to an Economic Development Corporation prez I spoke to here in Texas recently, the state has 1,000 people moving here each day. Texas is attracting a lot of companies from out of state. Unfortunately, we're also attracting a lot of out-of-state investment capital as well. The returns on rentals are diminishing in a lot of areas. I just looked at a duplex in the city I live in. It collects $1700/month in rent and they want $235,000! And guess what, they'll probably get close to that. Now that is not the norm, but just in the past few years the number of rentals that are getting less than 1% of their value per month are increasing. Anyway, it will be different types of interesting rides in different locales with different circumstances. All that said, I'm certainly glad to be in a state that is attracting people to live and still has relatively affordable housing.

Post: Investment meeting with a local PM company, questions to ask?

Stan HillPosted
  • Investor
  • McKinney, TX
  • Posts 189
  • Votes 93

1) Fees, fees, fees. They will likely charge 10% of monthly gross, 1 month's rent to place a tenant and 7% of repair receipts.

2) Clearly the other obvious question is what things rent for. I've generally been a bit suspicious of what they claim, though really can't back it up with hard evidence. My suspicion is based on their need to justify what I think are outrageous fees. But I concede I am pretty much a tightwad.

3) Their average turnover. This can be a strong hint how good they are at their job.

4) Average time to fill specific types of homes, i.e. 3/2/2, 2/1/0, etc.

Actually, I am also hoping you'll get some better answers and will share what you have learned after your meeting and other adventures. Maybe some scrooges like me will loosen up a bit.  ;)