All Forum Posts by: JR T.

@Steve Vaughan There is no secret sauce to finding short sale clients, just get a REALTOR license and start some local advertising. The hard part is finding buyers willing to participate in a 90 fishing expedition while the listing agent tries to figure out what the bank is going to take for the property.

In Maryland late fees are capped at 5% of the current rent amount, but we can accept partial payments without it meaning a thing with respect to the tenant's obligations. I've had courts both agree and disagree with me about the grace period being the "landlord's option" because the lease I inherited would say the rent was both due on the first and there was a grace period until the 5th.

I tell tenants your grace period starts on the 25th of the preceding month whenever they ask about it.

@Steve Vaughan Thanks for that little dose of rainbows and sunshine! If you'd read the posts you'd know that thanks to the thread I learned about stand alone liability policies. I have several quote requests out. Hopefully this, coupled with making my tenants carry a renter's policy will help take some of the risk off of the portfolio. The reason for the cars is I live 1-2 weeks a month in Atlanta where my call center is based and it's not practical to drive back and forth every time.

@Paul Choate I'm a debt buyer. Small world - we try our best to keep you guys busy, just not too busy :). Can't believe you can get professional liability insurance at those premiums. What's your E&O like? Our E&O is horrendous and goes up every year. Of course you do get some of the premiums back through your claims each year but it's a painful check to write.

Yes, these lease terms are essential to making tenants better stewards of my money. The fact is rent is due on the first. Landlording is the business of time. Every day I give up to "be nice" or understand why a tenant cannot predict their rent payment obligations when they receive a paycheck in the middle of a month is a day of rent I will never get back. Getting tenants to break their bad habits and accelerate their rent payments is always the end result. Nobody moves to get a 5 day grace period on their rent.

There are hard money lenders that can put those types of deals together. The rates are outrageous. You'd do better to get involved with a community bank interested in aggressive real estate lending. If you take out multiple loans or loans for the down make sure every lender involved knows of the other lenders and where all of the loan proceeds are going. NEVER lie to obtain financing - if the flip deal goes bad the lender will view your misstatements as fraud.

I had reviewed some leases from some of the big multifamily operators (multi-state) and they all said "additional insured. I'm certain if the tenant wants to comply with the lease language and our lease is what sent them to the insurer they're not going to look a gift horse in the mouth and refuse a simple COI. What would be their logic?

Yes you could lose some of the money you put into the property. Also you're not going to amortize even your closing costs out of the loan. You'll basically be doing a shitton of work so a bank can make a lot of interest off a tenant you find and will probably lose a grand or two in the process.

@Derek Caffe You're going to have more hardware, appliance that sort of thing. Four kitchens, more bathrooms, more showers, more electrical wiring since it is all likely metered separate and thus more breaker boxes and so on and so forth. 

Read the book man. It's a starting point that will give you enough knowledge to figure out 95% and then we are all here to help you out with the complicated 5%.

Happy investing!

I'm in 100% agreement with you at those numbers. $100 or so per unit is reasonable to protect against what could be unlimited liability. The problem is the policies I've been shown to date are more like $6-800 per unit. At that point the numbers work out to argue against insurance.

What I think has happened is I am not getting offered coverages based on my needs. I'm just getting the same thing they sell to everyone. I think people far wealthier than me have been insurance people to get the specific products they need to fit their unique financial circumstances.

@jd 

@JD Martinundefined

@Brad Chandler I am not far from you in Frederick, MD. I'd be honored to meet up most of the way to you around say Rockville to buy you lunch or dinner and get the chance to learn about the legitimate side of wholesaling. I know there is a legitimate side to it, pretty rare to see it but it's out there.

I'd never recommend somebody trade in their real estate broker's license to become a wholesaler. The confusion in the language comes from the fact that what I see wholesalers doing is in every sense brokering a sales contract. Of course they can't call themselves brokers because they're unlicensed and it would definitely be illegal then. The wholesaling work I know of all pretty much resembles the definition of "broker."