All Forum Posts by: BJ Everson

Try a hard money lender if traditional banks are giving you the cold shoulder. There is a lot of money out there wanting back in real estate in one form or another. You could also look into drawing on your retirement funds to purchase real estate as well without penalties. But ask a professional how to go about doing that. Then you wont need a bank at all. 

@Sachin Amin to answer your question on your approach would determine on how these are financed? Do you have a loan on the property or are you earning the $1,950 ($650 each) a month and it's a free and clear property? If free and clear you can look to leverage the property to take out equity and finish the 4th unit. And you can do this at any level of leverage, doesnt have to be the full 70-75% LTV so you are still cash flowing strong.

If you already have a loan on the property I would ask to what extent was your rehab? If it was sizable and perhaps you bought the property distressed then I would look into the current valuation and consider a refi (need 6 months of seasoning though) as a means to again pull equity out to finish the last unit. 

Your approach isnt bad, just be sure to learn from each project and grow from them. Maybe on this one you could of spread the rehab funds out a lil more to get all units occupied first then go back in a year later to get the units where you wanted. 

@Sam Cerreta There are 2 parts to Franklinton; East Franklinton and Franklinton. East Franklinton is basically from the river to 315 and has pretty much been bought up by all the big developers in town. Huge plans for this area that will change it completely and will be like a new Short North with retail and apartments and bars/restaurants. West of 315 is Franklinton and is still a rough area. Mt Carmel West sits right up against 315 and they have released plans to change their campus as most of it is going down to their Grove City location that is almost complete. So I would tell your investors to stay as close to the hospital and as East as they can for the next couple of years. Most would think with all that is happening in East Franklinton, Franklinton would also benefit, but the fact that a highway is dividing the two, who knows. 

Agreed with @Matt Stewart on his specific areas and @John Horner for his price points for the most part. Another step you can take is to turn on the School and Crime heat maps on Realtor.com or Trulia.com and that will give you a good idea of the areas at the same time as the average price range of the neighborhood. I would add Whitehall, Obetz, Groveport to the C rated areas. 

That is a hell of a situation. At this point if tenants aren't willing to sign new leases or are month to month then the power is on you to get them out. Remember, they aren't doing you any favors staying in the place. Sounds like new tenants is what you need and it will be great if all your financing stays in place for this this to happen. So I would remove all or at least make that clear and see what they do. 

It's all about what your time is worth. If this is the type of tenant who makes excuses for non payment of rent for a few months and even has a plan to buy himself a few more months by involving his gf, then do you think this is also the type of guy who will show up to the eviction trial? You will pay attorney fees (if you don't have in-house) and then most likely servicer fees to get the notice to him, all for him not to show up. It will all still get processed and maybe even a warrant for his arrest for skipping trail, but what are you actually getting for all this time spent?

Things to consider; how much in rental income are you losing each month/day he is in the unit? Versus the time/money spent with eviction as well as is this the type of person that will trash the unit or leave all of his junk there for you to clean out/pay to clean out? I have had this happen where we posted the eviction notice and they left before the 3-5 days with all of their junk still in the house. Was a big effort to get that house back on the market. Still filed the eviction so ppl like @Federico Gutierrez is still getting it on record for the next guy (which we're all on here to help each other, this way included) but had to deal with a heavy fall out. Where $300 to move out would of got me a rental closer to re-market. 

Overall, have tighter rent payment standards where you are filing for (or at least telling the tenant you are) eviction after the 10th day of non-payment. That way you're not already in a few month hole to start this consideration. 

Can you please let me know the next time you create an event in Columbus?

I can recommend mine. Direct message me to let me know specifically what you are looking to do. 

@LeArcashei Moore The LLC will protect all of your personal possessions from anything that could happen at an investment property. So if your renter sues you for any reason based on the condition of the property, they will effectively be suing the LLC and not you personally. Thus, your personal items (house/car/etc) arent at risk of being included in any damages the suit names.

This can also go the other way; if you injured someone in a car accident and the prosecutor came after you for claimable assets he/she would conduct an asset search. But if the investment property is not in your name and in the LLCs they will not find it (this assumes you setup the LLC correctly).

If you want to hold your investments in an LLC (I do with all of mine) you can either setup one and then purchase or purchase and close in your name and do a deed affidavit to switch who is on the deed. It is easier to buy real estate in your own name and then deed over b/c there are few lenders that will allow to put the loan in the LLCs name.

Hope this helps, let me know if you have any further questions.