All Forum Posts by: Bac Nguyen

Update - My tenant moved out today. Yes! I just changed the lock.  Well, I hope to have it fix up and list by the end of this month and list for either Seller/Owner Finance or try AirBnB for a few months :) 

But, too late to back out for the SF Summit. Hope to see you all there! 

Cheers,

@ Jane Dang - If I was you then I will give them the 90-days extend. Here are a few things you might want to consider (1) Good tenant is not "easy" to find. You mentioned that they are a good and long-term tenant 

(2) You can force the rent increase with a chance they might have to move due to their situation. If they moved, you will have to spend money to fix up the properties - even paint and carper, etc. will set you back at least $5K or more and the lost of rent for at least a month that is another $3K.

So, if they moved out then you need to spend at least $8K to fix up the property. So, let say you fixed up the place and rent out for $3,350 from $2,850 which is $500. That will take you 16 months to recoup your money. 

Is it worth it? Your call.

Cheers,

Well, Equity Trust is one of the biggest SDIRA in the country. I was at their conference in Orlando 2012 and there are at least 1,500 - 2000 people there. They have the entire sales team there to pitch their products. I did not sign up but learned a lot bout SDIRA and networking with others. Frankly, I did not know they have that many complaints!

However, I end up to use one of the local company (UDirectIRA) out of Los Angeles, CA. As you might already know, the companies make money on the "fees" (receive/send the check, fax, you name it). And (the deal killer) how fast they can respond to your request/approval and funding.  Time is money and I lost deals because they take too long to approve (2 days) and another 2-3 days to fund.

So, I end up to open a checkbook LLC and have total control of my SDIRA account.

There is not a one size fits all company. Thus, talk with other investors and find out who they use. If you can find a local company that would be benefits - the companies usually a front-end of a custodian. Review their fees schedule, approval process, and funding, etc. If you have SDIRA account then you might want to open a checkbook LLC.

Cheers,

@ Robert C & @ Minh Le - you both referring to a meeting with CHASE and a "special guest" on Oct 10. If you don't mind to post and share your thoughts after the meeting that would be great. Thanks.

Cheers,

@ Jane Dang - CA's a "pro" tenant and they don't like us, the landlord.  So, you need to do it as a few BP's already suggested. I am currently in the process to "ask" one if my tenant to leave. 

So, I served them a 60-days notice. Then extended for another 30-days. And then extended another 30-days and they supposed to move out by Oct 1-2017. And today is Sep 30-2017 and I don't think they move out, yet. 

Well, since they already screwed up my plan to get it remodel and ready to put on the market in September. I could follow the legal route to evict them with will cost around $1K and lost of rent on however long it takes to evict them. So, I just play along. They have found a new apartment but it's not ready for some reason.  They should move out soon!

BTW, I know that some landlords offer the tenant some money (or rent them a truck)  as an incentive for them to move out. 

Cheers,

@Jo-Ann Lapin - Pedro mentioned the cost ..."We paid $150/sf. "FOB" from the factory - that's the price before shipping. This price looks at floor area built by the factory which includes our second-floor balconies, a little different than the way site-built construction is quantified. Site costs and finishing ran us another $70/sf. or so. "

So, I from the cost per sqt of $150 then I am not sure it's cheaper than the conventional build unless I am missing something. Maybe the FOB construction process will save time?

@ Ari Goldschneider - Thanks for sharing your project. Like @ Anthony said "there will be a lot of icing on the cake" since it's Boston.

Anyway, are you lived in San Diego? As there is a meetup group scheduled for tonight 6:00PM PST.

Cheers,

@Chad Brizendine - Congrats on your first deal. I am also interested to know more about the mentor group that you mentioned. I PM you for more details.

Cheers,

I just went to a local RE meeting group here in San Diego last night and Justin is a guest speaker at the event. Granted, he is not a "smooth" talker like other gurus. But he is real and straight shooter and not sugar coat.

Everyone knows that you can learn from BP and the Internet. But, how long it will take you and do you have the persistent to finish it. Justin mentioned you have one goal - the goal is to build a "money machine" and he and his team have a blue-print on how to built it! Well, it going to cost you. But, you rather have a proven system that can replicate and repeatable or you can try to invent it yourself.

No, I am not affiliate or a student with Justin, maybe not yet. But, I have been taken other RE training courses from other gurus. Frankly, training is a "cash cow" from Microsoft, Cisco, etc. as I am an engineer by day. And Real Estate training is no difference.

Anyway, I missed last year Flip hacking Live. So, I just signed up for this year event. BTW, Justin will donate the sell last nite to Harvey hurricane. That speak volume for who he is.

I hope to meet some of you at the event later this year!

Cheers, 

@ Will Wiggins - I believed this deal and terms are from private seller - like Seller/Owner Financing as tradition bank don't do this type of loan.

So, the term is "20% down 4.25% interest 5 year lock 20 year amortization". You have most of them right. Except, at the end of 5-year you have to cash the lender out, period. Either by refinance or sell the property. Again, hopefully during the 5-year period, the tenants help to pay down the principle and the property appreciate which is win-win for you. Typically, you can refinance the property with another lender and pay off the original lender.

Also, this is not ARM (Adjustable Rate Mortgage) - instead it's a fixed rate interest. As if it's an ARM you pay way too much at 4.25% interest :)

Yes, you have to come up with at least 20% for the down payment - the seller needs to see you are serious and have skin in the game. BTW, the 20% down is the norm - you need to have money to make money.

You probably heard from the "gurus" whom pitching their training with no money down , use OPM (Other People Money). Sorry, when you just start out with no experience, etc., like myself, my family not even lend me $100 bucks leave alone convince someone else that you hardly know to invest with you. Maybe, later on, when you have a few properties under your belt.

In short, you might not get away with the 20% down. But, most people often ignore "the key is get the "terms" that favorable to you, the buyer.

Cheers,