All Forum Posts by: Alan G.

Justin, In Pennsylvania, at least the area in which I am in is just outside of Philadelphia , the assessed value means absolutely nothing in relation to the true value of the property. I actually want a lower number since that is what determines my taxes. Go with simple comps since that will be the most accurate to the true value.

David, I started using payyourrent.com about 2 months ago and love it. ACH debits are done in 1 day and they have amazing phone support. Alan

John,

The first thing I'll say is, since its an investment, as long as the numbers work. Doesn't seem like this owner would be motivated but you should def try. In the neighborhoods I invest in, this is my total strategy.  When I see homes that are not taken care of, used for selling drugs, or boarded up, I buy them. The more on the same block the better. I now control who lives there. Those dozens of  homes that looked horrible on the next block over? I own all of them now and all look beautiful and have great tenants in them. I found that by doing this, the neighbors started taking care of there own properties better. 

Make an offer, talk to the owners, it doesn't cost anything to have a conversation.

Justine,

Its really up to you to structure the agreement. How long do you need the money for? Are you giving up equity? 

I use private money for short periods only until I do a refinance of a specific project. My agreement is written up with a 1 year max, but without any prepayment penalties.  I know I'll be paying them back in 5-6 months but I write it up for 1 year just in case. I do interest only payments and 1 point on the back end when loan is repaid in full. Also, in the case I should go over the 1 year mark, I have an additional point built in for the lender. 

This is just the terms I have come up with. I want to make it attractive for my investors but I also don't want to pay more than I have to for the money. Its really up to you to be creative.

Charles, Sorry kept hitting enter today. Upen is right in his definition. When i refer to a portfolio loan, i generally mean a package of properties under 1 loan.

Charles, Drive down the road close go where your investments will be and stop into every small bank and credit union and just have an honest conversation with them. I'm not kidding when I tell you I did it over 15 times before I came up with my lender. We now have a great relationship including me taking him to dinner every once in a while. Hey have specific guidelines that we meet but good terms, competitive rates, and NO seasoning. Hope this helps

Charles, We do portfolio loans all the time and yes, I have over 10. It's a correct statement that most of the time they will hold onto your loan and not sell them. Generally you are going to find smaller banks and credit unions will do them. A local credit union has done everyone of my loans and I'm well into 7 figures. You will wind up speaking to the commercial loan department so whether it's through your LLC like I do or wether it's in your personal name it won't matter

Taija, Why do you feel quickbooks is not working ? Are you using the class feature ? I currently own 40 properties , and am in the middle of renovating 5 at this time, and have several more under contract. I'm not sure how I would do it without quickbooks. What specifically do you think you are missing ?

Jarrod, My rent is due on the first and late on the 5th. I impose 5 percent late fee starting on the 6th. Rent must be paid in full. if a tenant pays 1100 out of 1200 I still impose the late fee so instead of them owing 100 they owe 160. I don't care if they underpay by 10.00 the rent is not paid until it's FULLY paid. Also, if rent is not fully paid by the end of the month, future payments always go towards unpaid rent and late fees. It is def possible that October late fees will be assessed before September rents are paid. This being said, I am strict when it comes to all of this so it's a rare occasion.

Collin, Additional education can NEVER hurt. I took the CCIM 101 course and it was the best money I'd ever spent. Four and a half days of classroom with an amazing instructor learning everything from time value of money , to valuations, to cap rates, to internal rate of returns. Although I've been investing for several years and have a mid size portfolio of sfr's it def gave me more confidence that I can analyze deals with the best of them.