All Forum Posts by: Steve Vaughan

Private money should be obtainable if the deal is solid enough.  If the asking price is $62,500/unit, the property better be in good condition with rents of over $700/mo per unit in my area (where w/s/g is owner-paid).  Like @Brian Gibbons  states, what are the numbers? What is the seller's motivation?  All rented property is not in itself a good deal.

If buying 4 separate single-families and obtaining separate mortgages on each, no.  I would just buy in the name of the borrower.  Borrowing and insuring sfrs in the name of an entity will cause a lot of extra time, effort and headaches.  I own my multi's over 5 units in LLCs.  The commercial lending and insurance market expects that.  What you might do is establish a mgt co for your properties.  I have mine in an S-Corp. All rents and expenses for your rentals can go into and come out of that acct.  Helps keep the bookkeeping and taxes more manageable.  Good luck @Tyler Haskell !

Even without knowing your market, I would say that is way too low.  Collection loss at .5% and vacancy at .5%?  I guess in their world everybody pays, always,  and there is never more than like 2 days between your perfect paying tenants.  I would put those combined numbers closer to 7%, even in a strong market.  What other expenses are being minimalized and what other revenue numbers are 'optimistic' I wonder?  Check the tax returns and all records for sure on this as part of your due diligence.  

My best guess is YES.  When the victim of the bite seeks compensation they will most likely go after whomever has the best likelihood of having a dime to their name. The property owner would certainly come up!

My exit strategy if I were to utilize convenient yet extremely expensive hard money would involve the phrase "as soon as possible".  If I had no or questionable credit, I would approach a quality mortgage broker and/or bank and ask them some what-if scenarios.  Even with a probable approval from them, it's not a sure thing.   Sure things don't even exist with a w-2 job!

You can pretty much negotiate what the buyer and seller pays in closing costs, up to lender-allowed amounts.  Some lenders don't like to see more than 3% covered or rebated. Most states have 'standard' closing cost breakdowns.  In WA the seller pays the transfer taxes and owner's title insurance policy.  Buyer pays borrowing costs and recording fees.  Taxes and rents are prorated.  The lender will probably require you to pay the hazard insurance and mortgage interest that gets you to the end of the month.  A good realtor should be able to outline all this for you, too.  Good luck and congrats!    

My appIication has a small app fee.  The fee is required to be paid before we can begin processing it, or it isn't yet complete.  No exceptions to observe equal housing/fair housing laws.  This application was not complete. With an incomplete application, you can just send it back to him. I love that he has owned 285 pieces of real estate! Mr Tall Tale can spin a yarn elsewhere, yeah??   Thanks for the laugh @Stanley Okazaki !

@Sam Leon I was referring to purchasing a multi-family with below market rents and month-to-month agreements, yes.  In my area lease renewals aren't that common.  After the initial lease, things go automatically to m-m.  So I would say, all looks well Mr Seller.  According to your rent rolls, units A & B are on a m-m agreement, paying about $75 below market rent per month.  We have ourselves a deal after you have given them notice of a $25/mo rent raise, effective in (40-60 days).  No inherited tenants have vacated yet because of that. My guess is they may look for a new apt but find they are still getting a good deal staying.  

In this situation I have done both  what @Marcia Maynard   and @Arlen Chou    have done.  Meet with the folks.  Add value. Make sure their expectations are aware of your conducting a rent assessment.  Coming in with rent raises first thing is not advisable,  to me.    What I always try to when purchasing a property with below market rents is negotiate with the seller to raise rents on their way out.  Make them the bad guy! 

Most of the dramatic heat of the moment texts I receive solve themselves after a little while. All the sudden you'll get a 'NVM'. (didn't  know what that was until it happened  last week)  I would let things cool a little. I am not discounting her situation.  If I were her, I would be getting out!  I had a couple divorce last year.  After she vacated, I went over and met with them, and released her.  I didn't do anything until she fully vacated. If she does that, I would!