All Forum Posts by: Raj Gandhi

Good question... I have minimal experience with cold calls.

Kids might be too personal.  Retirement and work might be too personal as well.

The weather, if it is interesting.  Vacation plans?  I know there are some BP pros that have mentioned discount cruise giveaways.  Perhaps you could pre-research vacation packages and give away information on those (website links).

@Martin W. I have 5 purpose-purchase rentals plus one that was my former home, all those are in Woodbury.  I also manage one property for a friend of a friend in Oakdale.  

It looks like the mistake was in the original analysis. Total cost is $235k + $18k = $253k. As a guideline, you'd like to have 1% of that in rent per month: $2530 / 3 = $843 per unit. If you're not able to raise rents to that level then you're probably not earning a very good rate of return on your investment (<5% ?). If you post annual expense details, someone here will run the numbers and give you NOI and CoC return rates.

You could get a HELOC and/or fix-up and refi. However, that's potentially throwing more money after bad. As @Michael Barbari said or implied, postpone the rehab or raise rents after rehab.

Can you be more specific with your question?

http://en.wikipedia.org/wiki/Connecticut_Probate_Courts

Banks don't operate in a logical way.  They operate by their own set of rules.  If you can figure out their "rule book" then you'll be at an advantage.

I don't have any good advice but I feel for your situation. One time Citibank reduced my HELOC form $90k to $10k and wouldn't reconsider even when I provided documentation.

What about calling your Attorney General?  See if you can get some free legal advice there and / or tell them you're being harassed by a bank.

I agree with avoiding realtor commissions. The title company I use is in Maplewood, protitlemn.com.  They have a real estate attorney on-staff and could do purchase agreements as well as the closing (flat-rate, no commissions).  Ask for Jamie Bodin and mention my name, then push for their best price.  :)   I'd guess $500 for the purchase agreement and $900 to close (including title insurance, etc.).

Your plan to do grass and snow service yourself is fine. At some future date you could discount rent to one of the tenants for them to do the work. At one of my SFH, I even rent them a mower & snow blower for $120 annually.

Does your subject property have garage spaces?  I don't think the other duplex does (on Laurel).  You really think it would take $100k to rehab?  I've seen pictures and guessed $40k-60k. 

Don't do that.   ;)

I'm guessing that you've got some flavor of whole-life insurance that will, some day, provide income to you.  Here are two quotes (original as far as I know):

• Insurance is insurance and investments are investments; never the two shall meet.
• Insurance is for things you can't afford to lose.

Therefore, buy cheap & appropriate term life insurance that will last you 20 years (or whatever).  Omit the S Corp and personally buy a rental property.  Use the rental cash flow to buy more rentals.  At the end of 20 years, the term life insurance expires and sell the rentals.

With this plan, you'll have a healthy chunk to invest and be self-insured with profits from the rentals.

Welcome to the site!

The proposal seems overly complicated. It also front-end loads the terms against you.  That is, if times are tough the first few years then you'd be paying the minimum.  Then, if things are rolling better you'd be unable to catch-up due to compounding interest.

In your 6% : 10% proposal, your benefit of not offering a fixed 10% is that it gives you an outlet if things are bad. However, the difference between 6% and 10% isn't all that much. If you've got a great deal, then go with 8% fixed. I wouldn't offer more than that just because it is such a struggle as an individual investor to make much more than 8%.

I'd probably start-off proposing a fully amortized loan at 6% for whatever term.  By fully amortizing the loan, they'll receive more interest during the first part of the loan.  If you choose to pay it off early then their yield will be greater than 6%.

The loan is simple if the only variables are interest rate and term.  If you need an outlest for generosity (or guilt), once or twice a year, send the lender a thank you package of fruit, candy, flowers, gift card to restaurant, iPad, etc.

Good luck in Iowa, I'm from Ames.

There's another duplex in Stillwater for half that price.  The other one needs some rehab but would be somewhat more profitable.  Of course, turnkey has it's advantages.

In Woodbury (nearby city to the South), water is about $100 / 3 months.

Importantly, you won't be able to find tenants (at market rate) until February.  November through January, no one here wants to look for new places to live.  Try to push-out your closing to February or March.

I have a good resource for local title company (no affiliation); they could help you avoid real estate agent commissions if you choose.  I also have mortgage broker and real estate agent contacts.  Let me know if you want any of those.