All Forum Posts by: JR T.

Anytime they overpay you have to re-amortize in your system the "balloon" in month 36 will be whatever the balance is after month 35's payment. This sounds like a borrower who will pay off early, I'd be shocked if this note went to term.

Johnny, I don't think you should consider multi-family. You have found a strategy that you are comfortable with, have strong processes for and is producing a nice return for you. Stay the course unless and until you can't find enough deal-flow for you capital, then consider other options.

Nice work with your investments to date!

How much total equity do you have now and how much did you cash in when you started?

That's the only way you can get an answer to this question.

Moral of this story is don't buy real estate off a webinar.

@Guillaume D.

That's a very solid deal. Thank you for providing the details. It's very useful for everyone to understand what it takes for the numbers to make sense. I'm sure you had to pass on a lot of deals to get to that one. Keep up the nice work.

$200 a month is not worth your time. One repair or vacancy each year puts you negative or close to it. Get out!

Provide more details on this flip transaction where you improved price so significantly.

What sort of property? Did you use a realtor on the buy or sell? What things did you do to increase the value? Who managed the property while it was being rehabbed/ubgraded? Who managed the work?

Thank you.

You shouldn't make an offer on this type of property until you have examined their rent roll, P&L and other financials for the past 3-5 years, minimum. If you are still in a study period make sure you review this information carefully as it is the basis for your investment. You should be paying only for what the property has done, not what you think it will do someday.

If you wind up closing make sure you get credit for the pro-rated rents and security deposits on occupied units. You'll need to review the tenants leases carefully as you are now bound by them. Post and mail notices advising tenants where to pay rent and who to contact for maintenance issues the day after closing. 

In my experience closing costs are split between buyer and seller. If your seller is offering to pay 100% of closing costs I'd say your offer price is too high.

Good luck!

I'd first go over the meter read dates and readings with the water department to determine whether this bill is even abnormal. You may average everything out and find that you just got billed for more days and/or that prior readings were estimated.

Sixty days out we send an option letter 60 days prior to expiration giving rates for a 12 month, 6 month and month-to-month renewal. Obviously the rents get very high on the month-to-month option. Tenant must sign a new lease and provide an update COI to avoid holdover rent at 150% of last month's lease rental rate.