All Forum Posts by: Al D.

1. To get a HELOC, you have to own real estate. This is a must. 2. Your real estate has to be able to appraise for high enough over any currently outstanding debt(s) on/against it (that is called your “equity.”) That equity typically needs to be 20% (maybe 25% - this depends on whether this is your primary residence, condo, etc., and varies by lender) over the total debt - including the planned HELOC maximum. 3. Once approved, you should get a checkbook. You can also withdraw cash directly from a teller. You may be able to do a wire. 4. Assuming you have (1) and (2), why would you want to risk investing in the stock market when it is at its historic peak? This is your choice, of course. 5. If you have a “sure bet,” please PM, Gordon Gekko.

Does anyone have any experience with them?

I absolutely cannot stand tenants who do not reply when they are late. I stress this point during the approval process. Most get it, and proactively reach out to me if they are to be late. I don’t start tripping until the morning of the 6th - all my leases have the due date on the 1st, with the additional four days before the rent is considered late and any late fees may be charged, as well as potential eviction process started. (I have one lease, where, after a year of almost-on-time payments, I realized that the tenants, two sisters, simply needed an adjustment for their work paydays - their rent is now due by the 10th. But they are otherwise good tenants.) You did not mention a grace period for this tenant - as I presume would be outlined in your lease agreement. I don’t think grace periods are mandatory in WI, so you may not have one. Personally, giving your winters and 3-4 month of on-time payments, I would accept the partial payment today on the promise of the full payment and the late fee later in the month. If they break that, then it’s on. But document everything with them in writing, including how this is a good-faith exception to the lease terms, and does not change the Lease.

Thank you, @Brad Larsen. GKhouses is at the top of my list. They are definitely different. I consider them hipsters (with a positive connotation of the word) of the PM world. I was hoping someone may have personal experience as a customer either with them or another local PM.

No experience with Tenant Background Search. I like Cozy. For my out of state properties that I self-manage, I have the prospective tenant fill out an application with my local “agent.” That application asks all the questions you listed you’d like to have answered - standard application. The agent emails me the app. I then get on the phone with the prospect, confirm the info in the application, advise them that I’ll be following up with their current landlord, job, etc (this is in essence me “warning” them of what’s to come - and I meet it, politely, of course. At this point, some start to spill out the truth about what’s really in their credit report/how they are facing an eviction at that moment, etc. - so we don’t even get to the credit check step. And I never need to deal with “denial of credit” letter.) I then tell them about Cozy, how they will (not I) shell out $40 for me to get their credit and criminal background information - that they could still provide to the next potential landlord (I tell them that that landlord may need some education about Cozy from them - so no guarantees that they could use it again in the near future) if I should turn them down after getting the credit and criminal report. So, for practical purposes, they still control access to their credit report; and they are also happy to immediately be able to see what you see. And you do not need to charge them a fee that you then list as part of your income (because you should,) and then count your cost as an expense - unless you make money on the arbitrage. (I never did.)

(Sorry, got away from me)... get a conforming loan (Freddie/Fannie) under an LLC. If you are planning to invest in SFRs, it sounds like conforming is the loan option you’d probably want to choose. You can potentially put your property into an LLC after closing a conforming loan - but you may trigger the “due on sale” clause. If you go with hard money or commercial loans or all-cash (especially) then LLCs are fine. There is no one way to do this. It’s your choice - now that you’ve got some comments here. Please don’t get hung up on such things as “do I get an LLC first?” I’d make sure you have credit lined up if you don’t already. Then ask that lender if you can get the loan through an LLC. If it’s your first few properties, you should have no problem getting a reasonable umbrella policy on top of regular policies for each property. You should go that route in any case, LLC or not.

It is my understanding that one cannot get

Hello, BPers. I am looking for recommendations on your favorite property management company(ies) in Birmingham. My property, an SFR, is in Calera, 35 miles south of the center of Birmingham. It would be great if your recommendation was already serving areas south of the city - I am concerned with the PM having to “go out of the way” for me. If you have someone you’ve done business with for a number of years, especially “through thick and thin,” it’d be totally great to hear that type of recommendation. If you only have someone you’ve met and liked - with little else - no need to comment, please. I’ve met and liked many people - but would only do business with few. Unfortunately, I can’t always tell until something out of the ordinary happens. Thank you.

Nick Poe I don’t know anything about you, your experience. But, only judging by the number of posts in your profile, I assume that you are new to investing. I don’t know the specifics of the deal beyond what you just stated. In any case, I am not interested. Just a word of warning in case you are just starting out and no one else chimes in here: Look at the “appraisal” report. See whether it’s a real (licensed appraiser’s) report. Look at the comps used in the report: are the comps really similar to the property you are considering? (I had a licensed appraiser use a comp from a block away as bird flies - but it was of a different “class.” That report was given to me by the seller. Just from Google StreetView, it was clear that that comp did not “belong.” My hired appraiser specifically excluded that comp, even after the seller challenged him.) Make sure that the property you intend to buy is in similar condition to the comps - no deferred maintenance, etc. No offense if you are experienced. Better safe than sorry.

I’m sure the books I will win in this contest will make me super rich. We can partner up and buy Hooters, @Jim Shepard (yes, yes - before anyone tells us here that OPM is best - we’ll leverage the buy-out and all that.) I just think it’s unfair that my grandma - with over 50 years of waitressing - can’t get a job there. We can change that. Together. (Mindy Jensen , your name came up - Jim’s did not. Happens a lot. I know you’ve addressed the procedure elsewhere. I’m using the iOS app. Just info for your devs.)