All Forum Posts by: Mike Parks

Im going with an entirely different bank this time around so we will see what happens

Well I made a post about this separately but hasn't gotten much attention. I recently purchased a 3/1 in the Philadelphia area. I paid 18.5 for it and the seller (who is also an investor) stated that once repairs are made (very minor) arv should be ~75k. I had my realtor pull comps and there were no recent sales (within say 6 months ) that were retail but there were some 12-24 months old that were from 65k -95k and specifically one 3 doors up from mine that sold for 75k 12 months ago. It was a good buy and hold and cash out refi scenario for me. 

My bank approved me for a 55k LOC against property pending appraisal. Now while the house wasnt 100% done, it was liveable. What I mean is that it needed some paint, a closet door or two, and some ceiling lights installed.

Appraisal came back at 30k which was right on target with all the wholesale sales numbers in the area. I have 2 properties that I refi'd 5 months ago in a crappier section of the city, houses much smaller and 0.7 miles away and they apprised for 64k and 67k. 

I havent received copy of appraisal yet but the math doesn't make sense. Tax assessment alone is over 50k.

just call around to different banks, its not difficult

I am curious to see what info comes of this thread as well. I dont want to thread jack but have similar interests in knowing. 

What do you do if you are mainly a buy and hold investor and most of the properties you buy are in renters neighborhoods. If retail comps arent really there, but wholesale comps are then where do you get your ARV numbers from? I do a lot of cash out refi's and recently had a property go way south on the appraisal that was done.

If comps are low due to wholesale numbers, then where does your arv come in to play?

@Kenneth LaVoie

Sounds like you have a solid portfolio, I dont have anywhere near that many and I manage most of mine now. I actually had my PM company lower their % from 10% to 8% as long as they could manage more of my properties.

I would shop it around and its probably pretty safe to say that with a "hassle" free portfolio like that, any PM company would be crazy not to work with you.

One thing you should think about though is how much is your time worth? If you and your wife plan on traveling, what would you do when the almighty call comes in and you need to do something to the property while you are vacationing in France?? Is your time with your family worth the 3-5% savings? I would say NO. While the PM firms may not do 5%, Im sure they would def be willing to work something out with you!!! Good luck and enjoy your retirement!!!

Its not 100% his, forget about all that and we will make it simple, its kinda irrelevant to my question anyway not looking at.

If I am 50% owner, do I have the right to do as I see fit with property as long as it is in my best interest or the best interest of the llc?

I have a tenant in place for a property I own with my partner, my partner seems to think he or we can get more. The place has been vacant since July of this year. I have a tenant lined up to rent it for less than what he believes we can get. I want to get the lease signed and property rented without his so called "approval" can I do this since I am owner and on the mortgage?

essentially my thoughts are this

I am 50% owner of property

I am financially responsible for the property

I can rent it to whomever I want for whatever price I want without his permission.

Once tenant is in place there is nothing he can do

everything is explained in my first post

property deeded in LLC that we both are 50/50 members of

"I essentially "gave" this certain someone the property. What I mean by that is he would be 100% responsible for everything IE: taking care of mortgage, insurance, maintenance, etc. Net rental income would be his."

Maybe gave wasnt the right but he would treating the property as though it was 100% his.

No written agreements

Rather than get charged by my attorney I figured I would see what kind of response I get here first from all my knowledgeable peers.

I own a property 50/50 with someone and my name is on the LLC and on the mortgage. I essentially "gave" this certain someone the property. What I mean by that is he would be 100% responsible for everything IE: mortgage, insurance, maintenance, etc. Net rental income would be his. Here's where things get ugly.....

Property was refinanced back in July 2014 and has been sitting vacant since, he has been covering the mortgage, so great. I have found a qualified tenant who agrees to pay what MY asking rental price is. Now the "someone" seems to think that this place is worth more (which it may be but not much) but he hasnt been able to find a tenant. Clearly its a price issue. My question is this....

If I meet the potential tenant, get the lease signed, accept security deposit, and hand over keys, is there anything that this "someone" can do since I am 50/50 owner and am just as much financially responsible as he is and even more importantly can he do anything to the tenant once the lease is singed?

based on what? Wholesale comps cant yield the arv when there is a house 3 doors up that sold for 75k 12 months ago.