All Forum Posts by: Chris Wallace

Cash Out ReFinance

I collect the security deposit and first month rent at lease signing, as this should be no problem for a serious prospect. For your situation as Roger mentioned make sure to collect BEFORE move-in just to make sure the funds clear your bank.

Alright I've spoken with them and checked the local court records. They've been paying rent into a court ordered escrow. The management co had been cited for housing violations and wouldn't or couldn't fix them.

They took the landlord to court for numerous housing violations that the management would not cure (vermin, water damage from the vacant upstairs, accumulated trash from a restaurant in the building), it was pretty gross stuff. They have pictures....

The court returned to the tenants all the money paid into the escrow and ordered the management to give them a favorable rental recommendation.

I also spoke to the previous landlord who said they were good tenants for 5 years, they moved when she sold the building.

Just saw a major red flag when doing my due diligence on a prospective tenant. Did a rental verification and the landlord says they owe back rent. They list the reason for leaving as property needs major repair. No evictions or judgments came thru on the check I run with smartmove. 

They have good jobs as a public school employee and hr professional. Make 3 times the rent. No criminal background or activity.  

Smart Move recommends accept, what do you say?

The email address includes the word "mayhem".

Hi folks, I'm securing a vacant property for the winter, this will be my first time winterizing a property. The gas service has been shut off and the meter removed. I'm now waiting on the city to cut off the water service any tips on draining the water from the system after the water service is turned off? 

Any other tips for a newb?

Thanks,

Chris

@Jay Hinrichs

 So I talked to a Hard Money Lender here in town face-to-face yesterday. Very enlightening experience. He said he could do the deal no problem (for him) , but jeez this is some expensive money. Please check my math:

• I need $40k to finish. Pay contractor final invoice 30k, and pay down 10k on CC
• HML minimum loan amount is $100k so even if I draw only the 40K, I'm still paying interest on the whole $100k
• Upfront 5 pt Origination Fee = $5k
• They deduct 6 months interest only payments @ 12% or 1% per month = $6k

That's an $11,000 finance charge on $40k!!! which equals 27.5% (11/40 = 0.275 ).

The saga continues....

Congratulations! 

Sometimes it is best to keep the "dreamkillers" at bay by staying mum. Cant wait to see your successful closing post once the deal is done.

@Jay Hinrichs Thanks for the tip. 

The property is free and clear, this should be a slam dunk, alas its not. I have been talking to prospective lenders all day. Some of these folks are dense and the computers are doing all the underwriting. One credit union told me they'll lend on non-owner occupied property but not if its for rent or under renovation. Huh? How is it an investment if its not generating a return and I cant work on it to improve its value.  SMH....

First thanks so much to everyone for your support and advice.

Unfortunately most of my cards are nearly maxed, so that option is out and my credit score has suffered dearly for it. I am going to try family and the P2P Lending site. While keeping my eye on a HML as a absolute last resort.

Thanks again!