All Forum Posts by: Mark Yuschak

Do you have a clause in your lease that indicates the tenant will forfeit their deposit if they move out prior to the lease expiration? If so, that is grounds for keeping the deposit.

To expand on what what Kevin said...

Go to your local REIA to meet and network with other like minded investors. During the course of your conversations, ask to see a contract with they use. You might be surprised that they'll give you one! Since the person is local, it likely is more accurate to your state laws, etc.

While you're likely in competition with REIA members, they could also be your end buyers. Add them to your buyer's list!

This question comes up from time to time around the forums and it seems that personal comfort level for each person's situation is what reigns. By and large, no two people have the exact same views about debt and leverage.

I'm in the same camp as the original poster and really dislike debt. I respect your decision to stay debt free. Sure, the growth is much slower, but if there were a job loss tomorrow or some other catastrophe, I really have nothing to worry about since I have a decent portfolio free and clear. Granted it's no where near the size of many others who leveraged and bought up a ton of REOs in the past couple of years, but I feel safer and more secure by using my model.

I'm with the rest of the pack. I refuse to buy a new car and only buy cheap, domestic cars that are easy to work on myself, or have a shop work on. In my area, GM dominates and parts/labor are easy to come by for GM cars.

I would go for a vehicle with the fewest options since it'll be less stuff to break. For example, I have a 2005 base model Silverado (work truck). It has 193,000 miles and has needed nothing more than an alternator replaced. The old girl still runs great and the v6 offers decent gas mileage. My "professional car" is a 2000 Pontiac Bonneville with 210,000 miles and it, too, still runs very well. Combined, I have a little less than $6,000 into these two vehicles.

Bear in mind, if you buy something older you likely won't put full coverage on it since it's not worth it to do so. Self insuring is the cheapest! And, it's not a huge loss if you crash a $2,000 car/truck. Just buy another one! Any car which is financed will need to have the lien holder as a loss payee on a full coverage policy.

Mark is absolutely right. And, as far as I understand it, they stay with the property/case number for four months.

I wouldn't bother appealing the "bad" appraisal since the process is lengthy and the burden of proof is on the appeal-er. Since the market is heating up, you'll likely find a cash or conventional offer quicker than working through the appeal process.

I'm definitely with the "sell ASAP" crowd as well.

Whenever I'm asked the question about which formula I use, I'm really stumped. It's not because I don't know what I'm doing or not willing to share any "secrets".

Everything I do with rehabs hinges on my comfort level with the deal. Not only would this include the numbers, but also the resale time, extent of repairs, location of the property (this is a major one), potential end buyer financing restrictions, etc. All of these things are equally important in my opinion. The thinnest flip I ever did had a margin of only $2K, but I was in and out the same day.

If a wholesaler ever asks me my criteria I put it in their terms by saying 65% of ARV - costs. This is a quick and dirty test to get them looking for me. I can't help myself but to laugh whenever they ask me about "paint and carpet" flips. I'm yet to see one of those....

This is awesome! I can't wait to hear the details, too!

This is really a question about what's acceptable in the region where you rehab.

In my area, knockdown is acceptable on the ceiling, but not overly common. Popcorn ceilings are out of style and buyers don't like them. 90% of the time, ceilings are smooth. Walls are always smooth as well.

I've only done four rehabs which had knock down. A few had popcorn that we either scraped off, or hung new board over top of the existing.

Good work, Jake Kucheck. It was a pleasure to have met you this past week and get you familiarized with the area. I look forward to helping you grow your Mid-Michigan portfolio. More great things to come!