All Forum Posts by: Wyatt Franta

Hey Rob,

If you need some additional lenders to run this through, let me know. I've got a few that might be able to help with this, or at the very least give you a lead to someone else who might.

Absolute heart-wrencher of a story. I'd be as pale as a ghost when the actual owner walked in and told me the news.

I hope you're able to wipe the slate clean and keep hunting for more opportunities soon! 

Hey Kayla,

As @Ned Carey stated, by adding all of these additional rooms and running plumbing & electrical himself, you are putting yourself at a huge risk. You have no idea what's behind those walls, and you never will until you start busting into them. 

All it takes is one innocent nail into a stud wall improperly laced with piping or wiring across it to ruin the safety of the house and the people living within it.

Find a seller who realizes they shouldn't do everything on their own or stand firm on a price that will allow you to take the necessary precautions to safeguard the home and your investment after escrow closes.

Hi Joscelyn,

Your landlord is not providing you with a safe, habitable space to occupy. They did not disclose to you a rodent & bug infestation that they must have known about prior to you signing a lease given there were dead roaches prior to your move-in. 

I looked into Arizona tenant protection laws and pasted below is what I was able to discover that directly reflects your current situation. 

I am not an attorney, I do not claim anything after this sentence to be legal advice in any capacity. Please consult with someone who can legally provide real estate law advice where you live.

The Arizona Residential Landlord and Tenant Act (ARLTA) requires a tenant to “keep that part of the premises that he occupies and uses as clean and safe as the condition of the premises permit” and to “dispose from his dwelling unit all ashes, rubbish, garbage and other waste in a clean and safe manner” (A.R.S. 33-1341) while the landlord must “comply with the requirements of applicable building codes materially affecting health and safety”; “make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition”; and “keep all common areas of the premises in a clean and safe condition” (A.R.S. 33-1324). Given that an “infestation of insects, vermin or rodents” is considered to be condition materially affecting health and safety (A.R.S. 9-1303), as a general rule pest control is the landlord’s responsibility so long as the problem is not the result of some act or omission on the part of the tenant. If the infestation is a serious one, a tenant who wishes to terminate the rental agreement because their landlord has violated the obligation to “maintain fit premises” is permitted by the ARLTA to deliver a written notice to the landlord identifying the violation and stating that the rental agreement will terminate ten days after receipt of the notice if the violation is not fixed within ten days (or, if the problem is materially affecting the tenant’s health and safety, that the rental agreement will terminate five days after receipt of the notice if the violation is not fixed within five days) (A.R.S. 33-1361(A)). A tenant who wishes to terminate a rental agreement on these grounds should document carefully both the condition of the dwelling (with photographs or video and witnesses) and the tenant’s attempts to notify the landlord of the problem.

Hey Connor,

You're going to want to consider the age and condition of the property when budgeting for operating expenses and future major repairs. Your numbers reflect the general consensus amongst most investors in most scenarios, so they look good for a standard deal.

However, if the properties you're looking at tomorrow are older, let's say, built in the 80s and/or if they haven't been well-maintained by the current landlord, you'll want to increase your repair & CapEx budgets. For older properties that will need major work (roof, structural, HVAC, etc.) during your planned hold period, you may want to consider a higher CapEx, around 12%.

For repairs, the same approach applies, except now you would need to consider the interior of the property and what you will be responsible for. Appliances, paint, flooring, and cosmetics are typically the landlord's responsibility.

Hi Wilfred,

Investing is all about timing and getting a great deal. "Deals" may start to pop up here and there as consumer confidence rides the recovery wave, but the timing just isn't right (in my opinion). 

We don't know what lays ahead after the economy reopens. How many jobs will be recovered, how consumer finances will be affected after stimulus & EDD payments are cut off, etc. The economy could recover, or tank. There's just no clear-cut answer yet and it's worrisome for those of us watching.

Stay motivated, be proactive and start applying in case you need to replace your old job, and preserve your wealth at all costs.

Good luck!

Hi Dion,

The age of a property can be an issue for a variety of reasons, the possibility of lead paint is one of the more common ones you'll hear about.

Old piping, old electrical, plumbing, roofing, structural damage, etc. and more can present an issue when looking at a property that you'll need to consider when buying a property. Typically, investors will put aside more money in CapEx Reserves to offset the rising YoY costs of these major ticket items.

When you go to purchase your first property, make sure you get the necessary inspections performed. A home/commercial property inspector may or may not be enough for the job, but you will need to get one regardless, so make sure you get a good one!

Good luck!

Hey Mitch,

Just added you, thanks!

Hi All,

I'm a real estate associate in Orange County and I'm looking to connect with a couple of commercial lenders that I can refer clients to on future transactions. I mostly dealt with small apartments (quadplexes >) previously while I focused on residential, so I was able to stick with my current lender. However, my own personal interests and client pool has been gradually expanding toward including commercial real estate and I'm looking to continue growing.

Looking forward to connecting with you,

Wyatt 

Hi Sharif,

Please get into contact with a local SF real estate attorney & your insurance company for a question such as this. San Francisco has a unique set of real estate and quarantine laws that anyone outside of the area will more than likely not know about and could very likely give you advice that won't work in your situation and inadvertently cause more problems.

I'm very sorry this happened to you, and I hope you can remediate the situation ASAP.

Good luck.