All Forum Posts by: Tevis Verrett

I am following this thread, maad good luck during this moratorium!

Dear Kate,

As a realtor doesn't want to waste their time  with noob investors putting in lowball offers in a constricted market-it is understandable why they will want $$ upfront to work with you.  My thoughtful advice, know your market, and market is local.  What are the schools, what is the gentrification? what are the rent pressures? what is the industry.  You become the SME (subject matter expert) and then weapons go hot, execute.  If you want to have a realtor do your heavy lifting in due diligence, then prepare to pay bit.  I personally dont use realtors unless I am jumping into new markets.  I know what is going on, and excecute on the weakness that I can identify.  My 0.02 

First, get the middleman out of the deal and deal with the seller directly.  The man with the gold makes the rules.  Can you get a conventional loan on the property and cash the seller out?  if not, you have to suck it up buttercup and adhere to the seller rules if you want to get the deal done.  What are comps?  What is forced appreciation? What is the seller not telling you?  Has s/he stacked the units with straw tenants-meaning these people have no intention of paying you rent.  You will have 5 evictions on your hands while carrying the debt service.  You need mad due dilligence.  It is NOT about purchase price or down, and everything about the structure of the deal.  The balloon is much too soon.  More like 5/7.  What if the market turns on you, plus you have 5 protracted evictions?  My 0.02

Chase, i am CURRENTLY in a bare-knuckle legal brawl over my childhood home.  The fact that you can't currently get title insurance might just be a blessing. Lack of a title insurance policy means that there is a cloud on the title.  Without clear title you are GOING to inherit a lawsuit.  Best bet, talk to the estranged brother and see if you can bring them together.  Think that is too much work?  Buy the property without title insurance make it profitable and then get it taken away from you from the estranged brother that you stole it from him in a protracted lawsuit.  My 0.02

Buhravo, stellar thread chocked full of light and knowledge AND real world experiences.  Getting popcorn, bring the rain my brothers and sisters!  

All very thoughtful replies from our savvy colleagues.  Just a coupla other thots:

1). Pigs get fat, hogs get slaughtered-free rent, fat chance!  Returning a majority of their security if it is just wear and tear that you would fix anyway (paint, carpet, deep cleaning) ALWAYS beats an eviction proceeding, especially here in California.

2).  This pearl of wisdom was gleaned from another landlord brother here on BP.  Do quarterly 'HVAC,infestation, whatever-excuse-you-can-come-up-with' required visits to do maintenance/assess how they are treating your sacred investment.  Anything/any crap they have done that you find in these visits needs to be fixed in 48 hours or it is a breach of the lease.  

This will make this current situation moot, and give all of us more peace of mind as these, our beloved tenants, keep making our mortgage payments and thus making us rich!

My 0.02. . . 

Merry Christmas all,

Tevis

Take a deep breath and look at the numbers.  From what you have written, I will gently disagree with my BP colleagues.  Why such the deep negative?  Did you overpay for the condo?  Are there expenses that you can cut to make it positive?  It is rent pressures, it is ALL ABOUT rent pressures and available housing.  Are there a thousand of your condos available for rent in the current market or are you a the prettiest gurl at the dance?  It is an asset that you currently own and can exploit.  Much good luck out there, look at the numbers, and Live Your Dream

@Nwakaego Onike lawyer up. He can slap a mechanics lien on your property.

@Stephan Kraus if you move to Los Angeles, I can be your money guy. I am looking for EXPERIENCED rehabbers with HUD-1's to JV with.