All Forum Posts by: William Bannister

And they wonder why banks do so well .We wont even talk about the whole bails out or any of that cheap money they get.
I paid 9% on my first loan and I thought I was lucky. It was of course over 20 years ago.
3 years later I was able to refinance it into 6%.
The financing is part of the game but your purchase price is really the key in making money or getting spread,equity.
Everyone above is correct your owner occupied house its not even an asset to you if you live there its a liability.
Although I will argue with Robert Kiyosaki on this point about asset/liability.. It would be hard for me to produce the way I do if I didnt have a roof over my head and electricity to make sure I was able to get a hot shower in the morning so I could actually be a productive person.
Yes it can be surprising to find out your paying 2.5 times what your purchase price. It then comes down to it, will the home create any problems in the future for your career advancement and or ability to get more assets or greater net worth. Some people once they buy its a ball and chain. For other people if they got a great deal that means they can make money if they sell.
The bible say borrower is servant to the lender..Thats a powerful statement.

Will you have a 3rd party under contract to purchase deal when you start project? This can affect a lot of things for example you could have them put up 20% to obtain financing and it might make things move towards getting a loan easier.

Amie what really worries me in this matter is he has a full voice mail!
What if he was running an add on your unit and a potential client wanted to rent you lost that client. I would probably be done with this guy as soon as I found another manager. I never tell managers they are going to get fired until the day it happens so its easier to reduce potential fallout.
If he isnt responding to communication he will not likely respond to broken pipes and or other bad situation as they arise. If he is too busy then he cant handle this. If he is blowing you off because your a smaller client then get rid of him as well as he will not treat u better moving forward and might look at a smaller acct with lack of attention.
He has had 2 years and if your happy with everything else you might say if the communication improves we will have a good business relationship otherwise I feel like your not managing my property I have to go in a second direction? Can we get faster response in communication? Even if the response is a email or text saying got message will talk more about it later.
Lack of communication sends me a message that the other party does not care about the client or take them for granted.
I would look for a new property manager before you end relationship with this manager but I would begin looking tomorrow. Lot of times 2 years is about as long as you get. Smaller accts often dont motivate managers and you might try this.
Explain the numerous times you asked about having better communication and would it get him to respond faster and would he treat your need for quick response if the price was 10% instead of 8%.
Explain you would pay 10% but he must show you 3 months of communication that meet your standards first.
Personally In my opinion I would be looking for the next guy.
I have had over 200 units in the past and am down to less then 100 now but I really cant deal with a manager that doesnt call me back within 24 hours. Unless they are on there 2 to 4 weeks per year vacation. Then I expect whom ever is on duty on that property standing in to call if they plan to have a job the following week.
i let em know when I hire em not calling me is the one thing that will get you terminated. Im pretty respectful about calling during business hours unless its an emergency of epic proportion.
Tact in communication is important since you have so much distance separating you from your manager and how you communicate can also be a reason why response changes but patterns are obvious and you would know that.
I have always tried to end business calls on a light note like have a great day and things like hope all is well out there. Most people in business know this though and not trying to tell you what you dont already know;)

One of my property managers does book work for me once per month has helped me out a lot I just pay her what her hourly rate is with over time. She is salary at less then 40k per year with a free vehicle.
Of course you have to have income property to be able to do this and she is not a cpa. How ever most "good" property managers understand how taxes work in regards to real estate. The documents and receipts she puts together for the cpa firm that send out k-1's to partners have never been problematic.
Can you pay a part time employee to organize documents then have cpa firm handle it from there? Just a thought to reduce the 50 to 200 dollar per hour labor we are speaking of.
If you can find someone for 17 to 20 per hour that is good, thats worth it in my opinion.

Im sorry I meant dead beat previous owner and I am sorry I didnt read rest of posts before replying. Doesnt the title company have any responsibility here? I guess it seems if she is able to sell ? doesnt she sign something in there showing she is only owner.
Then if either selling party says they were married and were not legally married? Would not her representation of a seller being the only party that has interest in property be a potential case involving her in Fraud trying to sell something that isnt hers? Or if you say your married but your not then isnt this perjury if its done on a stand in court? Maybe she or he has already perjured themselves on the stand with this phony marriage crap. Have you discussed these strategies with your attorney? There maybe be somewhere in court documents and ect that the defendants or sellers previous owners what ever u call them have broken the law with this marriage sham they are pulling. Sometimes faced with criminal charges people give up?
Just trying to see what your attorney might think about these ideas?

Will, If you want to screw with your dead beat tenant here is an idea they will hate. The disability he or she is one often you can lose that disability if you are living with someone that has income and they bring income into that home or.
To report that would not be too difficult. Also if he is staying at property free!!!! He is receiving untaxed benefits, that is a 1099 event at end of year and I would strongly suggest you 1099 him and send a copy to his disability people which is usually the local social security office. the other copy to your rental place and maybe another copy to there bankruptcy. Dont do this until they are out of your property though!!
I like what J Scott said about your ac unit cut the line but I hate to get in trouble with the judge over taking out utilities illegally even though these people throughly deserve it.
If I have there information Will I am doing the following. Get eviction not money judgment I wonder if courts would have moved your case faster if you had done an eviction without a money action event? In some states you can do an eviction that evicts all human being on the property no matter what there names are if you dont know the names? Is this not possible in Calif?
All this is hind sight and I guess anyone can see what a mess your situation is when they played the BK card on you. I know this if there was a tree on that property I would be sending over maintenance crew to trim trees at 8 am ever morning a couple days in a row then maybe other issues on property you could deal with 2. The key is just notify em before entering property. Once inspection is made any damage occur to unit you may be able to press court to have them out faster claiming vandalism. Getting into unit just to look around with a officer of the law to get a complete condition report would be a good idea so they cant do any more damage without your filing criminal damage to property charges on them.
I had one group of tenants I hired a policeman off duty to accompany me in uniform 7 times to a property to do inspections and maintenance. The power of the uniform caused tenants to get out before court date and that was worth the 200 bucks cash I gave to the officer. I have ever since always used the law to help in these issues of evictions. I learned this on a ghetto complex I used to own.
I moved a police man onto property gave him free rent and it drove off my drug dealers! Was a large complex in Memphis down town. We made some money on that deal. The key is buy the problem solve the problem then make some money. To me dead beat tenants are money. The BK is a tough one hang in there;)

I do both. I do homes building up a portfolio of 4 to 6 homes and sell them with the goal to buy an apt building once I get 150k saved up. It may take 2 to 3 years flipping several homes. Its a rinse wash repeat.. Then put the money away in silver and gold.
Then after several years of cash build up I liquidate metals and pay cash for an income producing 4 or 8 unit. I am now soon within the next year saving to buy another large apt building around 50 unit+ This time around depending on what deals present themselves that have fat equity. I might wait a little longer to buy this next one depending on what the silver market does if it begins to go up fast I will ride out silver bull market before I pull the trigger to sell and move money back into apt building.
With homes : I try to take a 25k or less building and turn it into a 60k to 70k sale. I try to do 3 or 4 of these if possible. i dont use any capital to live on out of these small house deals, since I have apts that already that support me.
Im now in the phase of building up a college fund for son. My next phase will be for a boat and condo in Florida.
So Each group of small investments gets changed into a larger investment and the larger investment is commercial apt building not as difficult to sell as you would think as long as you buy a nice apt building. how ever Im not selling my apt buildings ever... that going to be my legacy to my boy. 1/2 dozen apt complexes at 50 to 100 units.
I might buy B- or C homes but I try to buy A- to B+ apt buildings. I also have a plan that with the sfh's some times I might cash one out just for extra spending money if our business needs a car or ect. I put a lot of miles on cars I burn them up really fast checking on my apts, to make sure managers are doing there job. I dont like flying it feels like Im being tyrannized so I avoid airports when I go to see my property in other places.
when I have a lot of cash in place the last house I sell I might do a 1031 exchange and put that money in the large apt building with my cash savings.
It reduced the hit on taxes a little bit.
I agree with Dennis the bigger apt buildings under management are easier to run I just have a meeting with my manager weekly and its hardly any time at all. I still do smaller deals just to build capital to do a larger deal.
Have a profitable day everyone, time for sleep.

Most of my deals arent high end homes and probably are middle of the road middle class 60k to 90k income types. 80k to 150k homes.
I guess I see why I am closing lower %. Its obvious the wealthier someone is the more options they have when it comes to buying real estate whether they borrow or pile up cash to buy.
I have been so focused on adding income properties to my portfolio and doing things without leverage I have over looked these more expensive homes that are out there.

I consider myself a master at bottom feeding in real estate;)
60 days ago I paid 1200 dollars for at tax deed auction. a 2500 sqft craftsman bungalow needs 9k in fix and repair. It will ARV at 80k give or take 5k. This project is 1/2 done Im working on it now, Although honestly I toke a break during holidays for 10 days and just toke another 7 day break to spend time with family. i should finish this project by may 1st. It will rent for somewhere between 750 and 800.
At that same auction I picked up another lot 35x135 for 220 dollar all cash.
The plan for this lot is to add to my pear and apple orchard plant 60 trees and wait a decade. The lots I buy are fun money. These 2 deals in Indiana/Ky Ohio river valley.
In West VA I put up money for my partner and he finds us 20 lots at 1 dollar a per. We buy them from the state auditor. They cost 30 dollars filing fees and another 61 dollar deed fee. For 91 dollar 1/4 acre buildable lots! these are lots bought as a result of being stricken off the tax records. The sell them cheap to get the lots producing taxes again. we eBay the lots from between 750 dollars to 1500..but first always offer them to neighbors:)
Those are a few deals but how about this one...Back in 2009 I did an assignment of contract on a 100 unit apt building total rehab 6k per door at least. I put it under contract for 450k. I then assigned my contract 35 days later to a New York investor who gave me 50k for my contract. My earnest money was 7k in this deal. for reference I was lining up a construction loan on the deal with 3 other partners If didnt hustle it myself. Since it was my deal It was my 50k!:) This one happened in Memphis Tenn. You see the power in partnerships is this ...Get 3 heavy hitters that want to do a deal and explain to them it goes 4 ways. If all 4 partners have 10k a pop to play with all 4 of you can search for nice size assignments having 40k cash and 4 bodies to qualify on a large apt building loan if you cant hustle your deal fast enough. you might assign a few deals before you actually close a building increasing your potential down pmt on a project you finally keep.
I used flipping homes and assignments of contracts to eventually put up 135k cash down pmt to buy my 74 unit building I have owned for 12 years now. Its the small deals that got me there! Now its just a sickness doing real estate. Il never quit no matter how old I get.
To young investors starting out you have never had it better! Just remember take off the blinders because all of America is your back yard.
whats above is motivational but dont get me wrong I have done some stupid things in this business. When I 1st started out and gained experience everything turned around for me.

Wow John thats impressive 45 deals a year! Kudos to you! Tell me, off subject what % of your LO tenants cash you out at end of 1- 2 or 3 years period you option them... cash you out.
I have only been able to get about 40% of them to follow through.
I seem to have to extend option periods and ask for more money down for right to extend when they cant refinance me out. I try to keep the buyer on a path to qualify but it seems many just dont follow through or listen to what they need to do to get financing. This isnt the end of the world it just turns some of my fast money deals into cslow money.
I would like to hear your opinion since your doing a lot more deals then I do. What your %'s considering you have a large enough pool of deals annually to make a better case then I do using your portfolio as a case study. Also I agree I turn down most applicants to buy my property on lease option even though they have down pmt money based on poor credit.