All Forum Posts by: Account Closed
Account Closed has started 4 posts and replied 682 times.
Post: Validate the 50% rule
- Manhattan, NY
- Posts 801
- Votes 61
I heard back from the intern, she is working on gathering the data between party times with her friends. Kids these days, lol!
Anyway, as soon as she has the preliminary data available I will compile the summary and post it here. Then when the full report is ready, I will post the link to that too.
Originally posted by Julian Ferreira:
I am looking to pickup more than 4 properties this way. I'm wondering if it will be harder to get lender approval after having a few mortgages in my name. I do not have any mortgages now.
Yes, it will get a little harder with each additional one unless they are spaced out some in time and since the lender DOES CARE where your down payment comes from, they will want your partners on the note too.
Yes, but they will discount the credit they will give you for the rent. Some lenders are only counting as little as 60% of the documented rents received while other are still counting 75% of it.
Post: REIT thread refreshed perhaps
- Manhattan, NY
- Posts 801
- Votes 61
A referral is of course best but another good option is to use http://www.martindale.com and search for potential ones to use.
For example, in Philadelphia County there are 26 firms who have at least one peer reviewed member of the firm with experience in securities.
Pick a few, review their CV and give them a call. Go visit the one you feel the most comfortable with.
Understand, the $200 will only get you through the first consultation. To actually set this up will cost much more.
Post: Validate the 50% rule
- Manhattan, NY
- Posts 801
- Votes 61
Originally posted by nationwidepi:
Originally posted by Taz:
I hate to beat on this dead horse, but that is why the business model is so important.
From your post here, I get the impression you offset some of these expenses with profits when you sell. Which a discussion of your business model would confirm or deny. But, for discussion purposes here, I am going to presume that is what you do.
Okay, fine. That is just another way of accounting for the same items I do. Which means it comes down to semantics and a shell game with expense buckets.
For example, suppose we each buy the exact same identical in every way investment property. We both pay $100k, we hold it for 24 months, do $15K in repairs/rehabs/whatever just before we sell and sell for $150K. Over those 24 months we collect 48K in rent. I set aside the $15K from rents while I am collecting them and you don't.
At the end, we net the same amount of money over the life of the investment, its just you "get" $15K more in rent than me, but $15K less from the sale proceeds than I do. It ends up a wash and our expense ratios are the same.
If you reduce any real estate investment to a series of cash flows in and out, it is very easy to do an apples to apples comparison. It is also very easy to pick out the great investments from the so-so ones and the ones that will drive you into bankruptcy.
BTW, it appears you are asking for a census of properties with line item expenses for each, I have no intention of doing that and would discourage anyone from posting that type of data in a place like this.
Post: More about service animals
- Manhattan, NY
- Posts 801
- Votes 61
We don't accept those types of notes. A companion animal is a pet, a service animal is akin to a medical appliance that many insurance policies cover.
Post: ? re mark up rates and fees to tenants
- Manhattan, NY
- Posts 801
- Votes 61
Originally posted by Diane Menke:
Post: More about service animals
- Manhattan, NY
- Posts 801
- Votes 61
This is not all that complex. If a tenant claims an animal is a service animal there is some documentation somewhere. Things like notes in their medical records indicating the need for the animal. Notes in the veterinary records showing the animal is a service animal. A certificate from the training/placement agency. Etc.
We waive all fees and deposits for documented service animals. We simply require the tenant to acknowledge responsibility for any damages beyond normal wear and tear caused by the animal.
We have never had a problem with this policy.
Post: drug dealer in home
- Manhattan, NY
- Posts 801
- Votes 61
Originally posted by Mitch Freed:
I can't imagine any professional property manager would recommend that to a property owner.
Deferring to Joshua's wishes I won't detail how I personally pay for the license fees of our property managers to carry concealed weapons where legal.
Post: Rent recovery service
- Manhattan, NY
- Posts 801
- Votes 61
No, they don't charge us up front. If we have a debt owed of $1000, they will collect $1500 and keep $500. That $500 is allowed because our lease/rental agreements state they will pay attorney fees required to collect the debt from them.
Now, in reality, we give the attorney latitude to settle and as such, we see about 70 to 80 cents on the dollar when everything settles out.
Post: REIT thread refreshed perhaps
- Manhattan, NY
- Posts 801
- Votes 61
There is no such thing as a mini REIT. Be very careful using REIT in your discussions because it has very specific tax and holding implications. For example, there is a limitation on the percentage any one person can own in a REIT and limitations on the minimum number of investors too.
It sounds like what you really want to do is an investing pool and for that you can use pretty much any entity you want. Depending on how you find your investors, you might need to register with the SEC and/or the state of PA or other states if your investors live outside PA.
The best suggestion is to sit down with a good attorney familiar with the SEC and PA regs and discuss the idea. It will be a very well spent $200.
I am in several investment pools and several non traded REITs.