All Forum Posts by: Tim Martin

A quick question. I have tried to re-finance with Bank of America for a 3 unit but have been told that BAC was told by the Gov. to suspend use of HARP 2 for investment properties for 60 days, and possibly 60 more. I have heard this from two different BAC mortgage agents. Is this just BAC or all banks working with HARP 2? Thanks.

I am sympathetic to both of your sentiments (George's don't invest with family and Nathan's don't charge family). The reality is it will take a lot of my time now and in the future to make this happen. I am also, however, more than happy to help out. I was asked to put together what I thought was fair. Note that I understand fair as a family member is not as the market deems it. I am hoping for some specific feedback about a range of fairness. I no doubt will pick something closer to the lower end.

I was asked to help purchase a number of cash flowing properties for a family member. I have a bit of experience and am investing in a market much friendlier to cash flow then the family member. Because of my knowledge, contacts, and geographical location they are wanting me to locate properties, set up contacts for maintenance, management, legal, etc. as well as keep an eye on them (though we will figure costs for prop. mng.). Since there will be a number of purchases made over the next two years I will spend considerable time upfront as well as over time checking in on investments (they will be across the country).

What I am looking for is suggestions on how much to charge for these services. Since this is the first time I will take other people's money and serve as a sort of broker investor, I have no idea what is reasonable to ask or how to structure it (a few options for them to choose from is ultimately what I am looking for). Since it is also family I need to be as fair and transparent as possible.

Thanks in advance for any insight.

Damien,

I absolutely would refinish the floors. They will last longer, pull in more renters, and it restores it to the way it most likely looked originally. I think it is well worth the money (or time if you have it). I have done it in two of the properties I own and it has paid me back in never having even a month of vacancies in several years (in part because the floors were redone). I paid somone $2.25 sq ft, but that included stain and fixing a few places. Good luck!
Tim

Would you consider short term upto 6 months? What would you consider medium term/
Long term?

Thanks!

Not as experienced as those below but I primarily evaluate it based on the cash I have in--with a comparison to what I could get on it with other investments. I am a buy and hold guy. Psychologically, a simple way for me is to base ROI on cashflow alone. The bump I get in tax benefits as well as mortgage paydown are all just extra. In the five years I have been investing, I have yet to see any return in equity. I am hoping that the next 5 gives me something there. Basing on cash flow only though, helps the other three ways (if and when they happen) to be happy surprises! :wink: