All Forum Posts by: Alex Verdugo

There's a meet up on Thurs the 6th at Ten55 downtown at 6. I'll be there along with a lot of other investors.

@Dwight Cook What if you were to increase rents incrementally over several months. You could increase rent $50 a month every other month until the properties until the units are at market rate. This would probably give them the time to adjust to the increases and make living choices that will help them make the transition easier.

If it barely works the way the rents are now, you could use the extra cash flow to make improvements to each unit over time. Let the tenants know that improvements are coming on a priority basis but that they are coming. If after 6 months of paying an increase rent the tenant finally gets a new refrigerator that might make the increased rent a little less of a burden.

My understanding of how LLCs work is that they keep personal things personal and business things business. So should something horribly bad happen and your tenant sues you, they can only sue the LLC. So your personal possessions will be protected but all the properties in the LLC are in danger. If you have one LLC for each property, they can only seek damages for the one property as opposed to taking all three properties.

 I know this is a bit off topic but how are you able to use security deposits for closing costs?  My understanding is that the deposits are still the tenents money and that that money is to be kept in a separate account and returned to the tenent at the end of their lease.  As the new owner of the property, wouldn't you have to come up with their deposit when they finally move out anyways?  This doesn't seem exactly legal because what if you can't return their deposit, do they now technically own a portion of the property and have become an unknowing partner?  

I'm 45 and ready for my first deal. I dont think that age has anything to do with how far you can go in this industry. Its about your abilities and where you want to go.

@Wayne Brooks

Thank you, I'll look into the county clerk.

Do you know where to search online for that information?  I can see what the property last sold for and the current value through the county website but where do I find info about leins, mortgages, etc?

@Alex Verdugo This is a copy of the email I received. Does this seem right?

You are responsible for the payment of $1,600 needed for the preparation of your Loan Agreement contract/paperwork and for the binding of your loan documents.

IF THERE SHOULD BE ANY MISUNDERSTANDING, BELOW ARE SOME BASIC REASONS WHY THE FEE IS TO BE MADE.

Over the years, loan fees were deducted from the principle so as to favor borrowers and to secure their interest. But in the recent, this privilege has been misused in the following areas.

(a). Abandoning of the loan process at the verge of closing.

(b). Some clients tend to delay the payment of the fee after their loan has been fully deposited in their account.

(c) In most cases of scam(borrowers who contact us and steal money from us with fake identity) escrows are used as a medium to defraud by cloning fake escrow websites/Accounts.

(d). To establish a level of commitment from the borrower.

(e). To be totally convinced that I (lender) am dealing with a business minded client.

For the past months, we have not recorded any of the above mentioned cases due to the implementation of this.

NOTE: The payment MUST be made with the same name used during the loan process so as to check the existence and legitimacy of the borrower.

Let me know if you are in agreement so as to proceed with your loan funding process.

Thank you for your understanding

How common is it for lenders to ask for $1600 payment from me before I receive the fund distribution? This seems like a scam but ive never had a home loan before. Is this basically the down payment for the loan?

@Zevi Katz

Maybe look at houses on the MLS to find the type of peoperties you want, dont want, can afford now, would like to afford someday and those you wouldnt give to your worst enemy. Analyse some of the ones you can afford to see how the numbers look and do the same with the onea you dont want. Figure out what works for you and then maybe the directuon you need to go will reveal itself.