All Forum Posts by: Anthony Barbato

Another issue regarding lenders: Make sure you find one with a 6 month seasoning period (or no seasoning at all if you're good ;) ). A lot of lenders will not refinance until you've held the property for a year.

Wow Joseph Druther thank you very much for all the information and for the words of encouragement! Where's the best place for me to get a standard contract? Are there places online that they can be purchased from, or is that something I can have my attorney draw up for me?

Thank you for the info Antoine Martel

Hello all. Curious how you close deals after you find something while Driving 4 Dollars? Do most of you get a realtor involved, or just use attorneys to execute the purchase? How about inspections to find major flaws?

This is what most people do. Getting financing through your LLC is next to impossibly. Buy the property in your name, wait a month or two, and transfer it over to your LLC. Please keep in mind that most mortgages have a "due on sale" clause. When you transfer the property, the bank has the right to call your note due, but the likelihood of that happening (assuming you are making your payment on time, etc.) is slim to none.

Thank you Matt R. and Jim Shepard for the information. I'd hate to dig in and start removing tiles only to find out that they're asbestos. Not to mention, the tenants are already in place, so I'd really like to minimize the amount of repair and inconvenience to the tenants. Maybe my best bet now is to go the route of mold/water block as Jim Shepard suggested and then repaint the ceiling for the tenants. Anyone else have any input?

I acquired a new duplex back in March and just had the second tenant move in last week. 

When I purchased the property, there was a small amount of pervious water damage to the ceiling in the kitchen, directly under the bathroom. I flushed the toilet multiple times, ran the water in the sink and tub, and everything seems dry, so I assumed it was an old leak that had been repaired. I went ahead with the minor rehab to the unit and moves the new tenants in. They questioned the spot on the ceiling, and I assured them that we looked at it and it was all old damage. 

Well of course (Murphy's Law), their second day in the apartment, I get an email stating that there is water coming from under the toilet and not a fresh water spot on the kitchen ceiling. I hate having issues so early on, I feel as though I lose all credibility and I leave a bad taste in the tenants mouth for the duration of the lease. 

I went ahead and replaced the wax ring on the toilet, which stopped the leak, but now I have the ceiling to worry about. I want to replace the "tiles" or whatever they are, but I'm not sure how to go about doing so. I am very familiar with normal ceiling tiles and grid (drop-ceiling) but these are different and I have never come across these before. I don't know how to find out what these tiles are, and if I am able to still get them. I would take to have to remove all of them and install a new drop-ceiling.

Can anyone give me any advise or opinions on how to proceed from here?

Let's see the numbers...

Omar Cantu Good morning sir. So I have seen this post at the top lately, and haven't really looked at it until this morning. I also don't have time to read through the entire thread, so I am sure what I have to say has already need said, but I'd like to offer my advise anyway. If something that I say sticks, hopefully it will help lead you in the right direction. And please don't take offense to anything I have to say. When I was younger, I was in the same boat as you. I had a great job when I was 21 (family business) and was making excellent money, all while living with my parents with next to no expenses. The downside was that I was really into cars. Throughout my younger years, I owned a Corvette Z06, Chrysler 300C, Audi A4, and a few more. And to make matters worse, none of them were stock. I dumped money into every single one of them, over $25k into the motor alone on the Z06. All so I could have the hottest car in the neighborhood and make people envious when I pulled into the gas station. What did all of that get me? $0 in my bank account and $32k in credit card debt. Now, I'm sure a lot of that doesn't relate to you, but I want to make a point. At some point in your life, you have to ask yourself, is owning a nice car, or anything else that's a "waste" of money, really going to better your life and your family. You have to be mature enough to make a decision based on your future. The fact that you are interested in real estate means you're starting to think the right way. But don't stop there. I know you love your truck, I get that. But if you can lose the $5XX/mo. payment and maybe pick something up for $1XX/mo. then you have $400 instantly to put towards real estate. Why not better your life now, and buy a better truck 10 years from now that's better than what you have? Use that as motivation and set huge goals. Anyway, I'm off on a tangent. Just wanted to give you some advise since I experienced a similar thing when I was your age. Feel free to PM me if you'd like to chat sometime.

CJ Witmer I feel the same way about partnerships. I understand completely that they can be extremely beneficial, but I have never been the type to work closely with people and not have my hands on everything, especially when it comes to money and financials. First off, if your bank "recommends" that you wait before purchasing a second deal, find a new bank. Look for a smaller local bank or credit union that gets to know you as a person and start a relationship. But do keep in mind, you can't count rental income as income until the property has been in your possession for a year or two. Now, since you don't have money for a down payment on a second property at the moment, don't stop looking at deals. A couple of reasons why: 1. Looking at deals and analyzing numbers is great experience to get more comfortable with properties that you are interested in. Even if you have no intention of buying, run the numbers. Maybe create a spreadsheet that you can use to analyze the deals and determine if they are good or bad. 2. It's rare, but there are options to purchase deals with no or little money down. You may stumble upon a seller financed deal, where the owner may cover a very large percentage of the loan in return for a higher interest rate. You can always refinance once you are in a stronger financial position. In the meantime, save like hell. Be very frugal with your expenses and always remember to save first. Before you know it, and if you can get really creative, you'll have a substantial amount for a down payment (10%, 20%, 25%) on another normal purchase.