All Forum Posts by: Tyler Gibson

 Kyle you can hire an attorney to handle the process for you. Unfortunately, I can't recommend any as I have not had to do this myself. What county is your property in? I believe you can apply for a hearing online but you would have to appear in person or have a representative appear to make your case. 

@Alex Howard It is a matter of personal preference and risk tolerance but I think that I would open an account with etrade or something and take the money I would contribute to a 401k and put it into index funds. Either s&p 500 or vanguard total stock index fund. This way you get a better rate than savings and money has the potential to outpace inflation. 

@David Hilleke I would notify all applicants if they were not chosen. I used a site that gave me a recommendation on whether I should or should not rent to a tenant based on their credit/income. If the site said they were a no go I would simply state that we have decided to deny your application based on the recommendation of the site. I should note that all of the applicants filled out the background questionnaire on the site directly so I had no involvement in the process.  I have only had one person ask why the site said not to rent to them and I gladly told them because they had been arrested for possession with intent to sell and had lied on their paper application about it (they had nothing to say in response).

If you have not yet accepted an applicant you can let people continue to apply. I typically let people know that the unit is not yet rented but I am close to making a decision and that they can fill out an application if they would like. 

@Jay Hinrichs I have no illusions about what is happening with the land trust. I did finish my statement with caution. I personally would only employ this tactic If I had the funds to make good on the loan if called. 

I only mentioned the tactic because I personally know a person that has deployed it a dozen times with no issue. That is not to say it is foolproof or that there is any guarantee the bank would not call the loan. 

@Omari Heflin check out the book ABCs of real estate investing by Ken McKelroy. He tells you exactly how to break down the numbers. 

@Austin Gunther if you think you are going to be able to pay this property off in 6 months why would you cash out refi? Why not save the money you would be throwing at the principal and invest that in your next deal? 

@Nick Elder I think that the lease of the 3rd room would have to be between the owner and the tenant. Also, I don't know if the Rent premium (the extra 20-30% rent) would count against his debt to income ratio. Technically the lease option fee and the rent premium should be placed into escrow or a separate account and held there until you are able to exercise your option. At which point the money would be credited towards your downpayment. 

@Bruce Weyer You would want to talk to an accountant for the exact items that can be deducted but you have hit on the main ones. Essentially any expense related to the property or the maintenance of the property would be deductable. 

@Becky Strunk You will want to consult with an attorney as they will know the specific tenant laws. I would also say that if he is using drugs in the home or has drugs in the home you could call the police. If he is being physically abusive you could get a restraining order. 

The other option would be to offer to pay him something to find another place to live. In the future, I would suggest getting things in writing with a lease. 

@Russell Zuck You would want to clarify some of these questions with the person you are borrowing the money from but here is my understanding. 

1. yes interest rate would be APR

2. Interest only means that for your numbers at 12% your monthly payment on the loan would be $1000.00. $100,000 x 12%=$12,000 divide that by 12 months= $1000.00. The balloon means that the $100,000 is due at the end of the term.

3. If you repaid the loan in 8 months your hold cost from the loan would be 8k