All Forum Posts by: Travis Sperr

@Ian Smith You mentioned you looked at comps - what do you see as the value? If you are going to wholesale it you will want to offer a price that leaves some meat on the bone for your wholesale buyer as well as room for you to get paid.

@Anthony Bostic  - Good for you, great to hear when someone is having success!

It depends - what are you looking to accomplish? because it could be easier to get a fix and flip loan for $250k than a long term mortgage of $90k. Context is everything here. 

@JDee Moore you have a couple questions here.

1) Should you refi - you have to look at the closing costs to refinance and see if you will recoup in 12-24 months - my guess is not. If you are needing a lower payment and cant make the current payment work for the next 12-24 months refinancing is the best way to do that, assuming you have the equity needed - not knowing the rate doesn't matter too much because a new 30 yr will lower the payment. Also know that being 8 years into a loan you are getting some principle pay down - which you will not get much of in the first few years of a new loan. A lot to look at on this.

 Putting your name on the deed - if you are going to add value to the refinance -income, credit, assets- then it probably makes sense to do so. You don't need to do it right away, the title company can prepare the paper work at closing. One thing to consider on the refinance and adding yourself to the loan is if you plan to buy a house when you move, if you haven't sold your current property it could be challenging to get another loan. Again not knowing anything more than you shared in your question.

@Jason Miller Hey man, I hope you are doing well! it has been a while. We appreciate the kind words. 

Hard on the problem not on the tenant. Meaning be cordial to them but explain you can not have a property/tenant that is not paying. I used to hate these type of issues because it really creates a scenario where you have to look in the mirror and figure out how you are going to handle it. But now I just follow the same procedure regardless of the tenant or situation.

Keep eviction process going as that is your procedure when you do not receive rent. Already a pretty difficult tenant for you why try to keep them in? 

or there is the magical and ever so effect cash for keys - you will give them x dollars if out by z date and the property is in good condition. Even if negotiating this arrangement the eviction process does not stop. 

I would not recommend handling an eviction on your own, especially in this situation too much recourse for the minimal difference in price.

Lastly - if you don't collect the late fees now, when will you? 

I am see this strategy a lot in my market, a lot of research required. The short list of what I am seeing - very capital intensive - the repairs to the property needed to meet all code and health requirements typically require a construction budget that far exceed the value of the property. 

Difficult to finance - because the basis is typically higher than the value of the property and the value is in the business not ht property. for instance an 8 room house designed for a senior home is only at its best value when being used as a senior home collecting the monthly fees. where alternatively a house is a house rented or not. 

Be sure to understand local and federal requirements for said strategy. 

@Isaac Guzman 

As a hard/private money lender I find my best leads in off line networking meetings or finding people doing deals - driving neighborhoods, asking my clients for referrals and meeting people doing deals. Bigger pockets is a great site for a lot of purposes but i have found that it doesn't provide a lot of quality borrower leads. Just my experience. 

Are you looking for a custodian or individuals with SDIRA's? 

An effective elevator pitch should be in your bag of tricks. Especially important for networking meetings where you may have 30-60 sec to introduce yourself. This way you always say the same thing and get your message out with our being distracted. Of course you would tailor your message to fit your audience- equity partner, lender, buyers, sellers.