All Forum Posts by: Billy Rogers

That looks really nice.  

Don,

I'll send you a colleague request.

One more thing to note - Prosper has loans up to 5 year terms. Lending Club and Prosper both take big fees upfront out of the loan, so even thought they may say it's a 9% loan the APR ends up being over 14% and you don't get the full amount that you borrowed up front.

Still they are much quicker to fund (1-2 weeks) and a lot less hassle than getting a mortgage.

Don,

I've had the same issue as you.  I invest in the Midwest where there are a lot of houses under 50k.  I've used savings, 401k loans, LendingClub and Prosper.  All of these are personal loans, not mortgages.   I plan on talking to one of the local credit unions to see what rate I could get on a personal loan as I'm getting ready to buy a couple more rentals soon.  

I did talk to AIMLoans.  They said they really don't want anything under 30k and all the loan fees are the same as any mortgage or even higher so you can expect to pay 3k in fees if I remember right which is pretty steep if your buying a 25-30k house.

Octavia,

I would suggest talking to a mortgage broker see if you could qualify for a loan for this property and also find out if the owner of the property would be willing to do any owner financing on the property.   If the property needs repairs you might be able to get a 203k loan that includes the repair money.  If you do get this property be sure to read up on some books about land lording.

Welcome to site Octavia.   It's a great place to learn and connect with people.

The seller could be motivated or not regardless of the form of ownership. 

 It just depends on their situation.    

Bienvenue à BP!  

Ce site est un endroit idéal pour en apprendre davantage sur l'immobilier.

Welcome to BP!

I like the advice @Elizabeth Colegrove gave you.

Just a short explanation about accepting less than full rent.  You have a contract - the lease - stating the rent amount.  If you accept less than the full amount you are nullifying your lease because you aren't following the terms of the lease.  If you go to court to kick them out, you can't point to the lease and say they aren't following it, because you aren't either.  They could say you have a verbal agreement that allows them to pay less or pay when they have the money or any other bs story they feed the judge.   This is one of the basic rules of landlording - only accept full rent payment.   

Also as a side note - Don't feel bad.  You haven't done anything wrong.  This is all the tenant's fault and they are trying to push you around and see what they can get away with.  Keep your communication firm but professional.  You can reimburse them or not, but don't let them deduct anything from the rent.  Don't give them that kind of control.

You don't ever allow the tenant to deduct anything from the rent.   Don't accept a check for less than the full amount of the lease or you will be invalidating your lease.  If that happens you could have difficult time in court if you need to evict them.

  Whether you decide to pay for this repair or not is a separate issue from them paying the rent in full as agreed to in the lease.