All Forum Posts by: Victor Drazen

Hi all,

Just acquired property, already a big problem: one of the tenants is AWOL and I can't get a hold of him. It's 2 days (or 3 days?) before I can serve a pay or quit notice as far as I understand.

I've been trying to research reasons for me to be able to enter the property to verify if he has moved out or not, but I haven't come up with much concrete.

I just need to know if he's still living there. He mentioned he may be moving out, but at the time it seemed like he was talking about after the lease, not after the property sale (now I"m not so sure). Also every time we have inspected the unit after the first viewing he had his stuff packed up as if ready to move out (again, thought this was in prep for lease end in Sept, he is a strange fellow).

What levers have you found helpful? Can I give him a 48-hour notice by mail that I intend to come in and fix a legitimate issue? That I intend to show the property to a buyer/renter? Do I already have enough pretext to suspect and therefore enter to verify? From the places I can see (deck), he still has some [valueless] property left behind, so it does not appear to be totally cleared out.

To be clear, I'm not using this to evict him, I just want to confirm if he's still around. He technically isn't doing anything wrong until the last legal day he has to pay - should I just play it safe and wait until day 9, serve pay or quit, then enter on day 11 on suspicion due to "nonresponse to pay or quit?"

Thanks

@Chris Mason

Thanks again for the input.

I definitely get that the perfect scenario I envision is pretty impossible.

But the second-best thing still sounds doable, right?

that: get license and hired, and write those vanilla loans you described for family members in the same market over and over. Someone would have to hold my hand the first few times, but I'll compensate them for that.

I guess I'm getting to be an annoying noob with naiive ambition at this point, so I'll leave it at that. I'm thinking I'll just bite the bullet and get it done. Worst case, its a couple k for an education and I'll still emerge knowing more about the mechanics of deals.

Thanks for the insight, guys. I talked to a broker who gave me an estimate at my take home being 1.5% of loan amount without any desk fees or quotas, which puts the number at $3375, or maybe closer to $2500 if there are hidden fees I haven't factored in. It's still a chunk of change.

It sounded like he didn't care if I worked on my own loans, but I'd have to do more digging, since it does logically seem like nobody would go for it. On the other hand, it costs him relatively little to have me as an independent contractor working on my own loans off of which he collects a percent or two (at, I believe, the cost of paying higher premiums for counting me as an employee upon renewal of his broker license?)

But the next issue at hand is working on my own loan/being able to touch my own loan and credit. How big of an issue is this in the end? What about processing the loans only of my brother, or of my brother's LLC, for example?

As far as updating the education, I would let my knowledge of unusual loan products lapse and become well-versed in my particular markets or niches, such as multi-units to start. Edit: I realize I cannot let the knowledge lapse completely due to CE requirements.

I know it's a little unusual, but I appreciate the feedback. Sounds like it might work at a certain cost, and I would like to get to the bottom of the trade-off and see if I can circumvent it. Is there any reasons this would not work if I handled all of the loans and agencies if someone else's name was on the paperwork? And is there any conflict with being simultaneously a loan originator and RE Agent?

Thanks again.

Hello,

This is my first post, so I hope it complies with the rules. I've been doing a lot of digging and reading everything I can. I am about to close and acquire on my first multi-family investment property (Hartford, CT), and had a question about the licenses in the title of this post as an investment in future dealings. Having jumped into the deep end of the pool, I am exposed to all of the agents that skim off a real estate transaction: real-estate agent, loan originators, attorney/title fees, appraisers, etc. (Note: I am not disparaging the valuable work a lot of these agents do by any means; everyone deserves to charge what they believe they are worth).

 I'm wondering if I can integrate these all under one person (myself) and therefore absorb all of the costs by eliminating these middlemen. It makes sense in the plan in my mind, but I really wanted to run it by the more experienced and nuanced folks who frequent this community.

I am looking to my next deal later this year (another buy-and-hold multi-family 3-unit), and before that time I would like to become licensed as a (Residential Mortgage) Loan Originator, and as a Real Estate Agent. Supposing that my sponsoring brokers hired me as an independent contractor and gave me favorable terms such as:

Loan Originator: No fees/no salary/Split commissions: 3% of loan amount and split: 85% originator (me): 15% Broker (employer)

RE Agent: same, but 3% of sale price split 50-50 with RE Broker.

If I were to act as just the buyer's agent and loan originator, at a $300,000 sale with 25% down, I would be looking at pocketing 300000*.75*.03*.85= $5737 (loan) + 300000*.015=$4500 (RE agent) = ~$10000 or a full 3.4% of sale price.

On top of all of this, I am looking to act in these capacities entirely as my own agent - not to service others' sales. That would include originating my own loans, as well as acting as my own buyer's agent (and, eventually, selling agent).

I understand that there are significant upfront costs, which I estimate at $1000 per license just to get licensed at all, as well as 21+60 hours of classes and exams, etc. And then the hassles and costs of annual continuing education. For argument's sake let us estimate the total costs at $5000 for the first year for both.

It all seems very straightforward and something that is a no-brainier for someone who wants to start doing multiple investments per year. That 10k per transaction that I save will go into future properties and it will be a great cycle of investment.

Again, this is my first post and I wanted to find out what you all thought; your insights are invaluable.

Thanks!