All Forum Posts by: Terri Pour-Rastegar

I usually have success with tax records and help from neighbors. But right now, I have a very frustrating situation right here in my own neighborhood. There is a house around the corner that's been vacant for nearly 10 years, that I know of. It's covered in vines, gutters falling down, yard full of crap, grass out of control, etc. I've done everything I could to find the idiot who owns this place. First, I looked up the tax records, which said the owner's address is the house! I tried finding phone numbers, but it's like the guy doesn't exist. When that didn't work, I sent post cards, letters, etc.. No answer. Then I chatted up the neighbors to see what they know. They've been mowing the lawn out of frustration. They said he lives a couple miles from here--didn't know the address, but gave me an idea how to get there. I have since personally knocked on the door of every house within 1/2 mile of where the neighbors told me to go, but no one knows this guy. Supposedly.

I've tried getting the county to get on his case, to no avail. At this point, I don't even care if he sells his house to me or not--I'm sick of the eyesore that his house has become over so much time.

Anyone got any ideas?

Jonathan, you have earthquake coverage in Missouri?

Yeah, Jon, I guess you do get reminders from mortgages and such. I've had my mortgages and car loans direct-debited for so long, that I didn't even think about it. :)

I just choose to "train" my tenants from day one to get the rent to me on time every month. It has been incredibly helpful that I've set up all of my tenants so rent is direct-drafted from their account and deposited into mine. All, except one tenant--and he's late every month.

I just don't agree that bank financing should be avoided at all costs. Without the equity lines obtained on our first few properties, we wouldn't be able to buy anything today. Our equity lines are set right at prime (one is LESS than prime) and based on a 20-year amortization. They cost us absolutely nothing to obtain (At the time, Wachovia seemed to be giving them away). They are secured by the property they're tied to, of course, but who cares? These are long-term rentals.

When we want to buy a property, we do so with those funds. We make double and triple payments to pay them down quickly. When we flip a property, we use the proceeds to pay off the equity line. Zero debt service sounds like a good idea to me.

If we had used hard money, our profit margin would have been reduced due to the higher interest. If we'd used seller financing, we would have had to pay more for the property. I don't like either scenario. Of course, access to private/hard money is great to have when you need it.

As soon as we get our new personal residence re-financed, I'm going after as much bank money as I can get my hands on.

Bank financing is NOT what got investors in trouble lately. I don't know about anyone else, but before I sign my name to any financing docs, I actually read them. Well before even that, I make sure that I know my finances and my ability to pay back the debt, and I consider all the risks involved. I never over-extend myself or take unnecessary risks. I do everything on a worst-case-scenario basis (i.e., if the market tanks, if I can't find a tenant for 6 months, if I can't sell it and must rent it, will I still be OK? If the answer is no, I do not sign). And I do not do speculative investing. I watched too many people drown because of speculating on the market. Nobody forced anybody to sign loan docs for ridiculous ARMs that would jeopardize a person's finances.

As for Mark's initial question, if you're really new, it's likely to be hard to get funding in the name of your LLC. That doesn't mean you shouldn't try. Just don't let it discourage you. Work VERY hard to establish a great relationship with a local bank. Make it known that your goal is to earn their respect and obtain financing. Be loyal to them--do all your banking there, go into the bank in person whenever humanly possible so they get to know you personally, etc. Eventually, they will open their hand to you.

I'm grateful for this thread, as I am involved in a related situation. Many many years ago we did our first flip. Great little 3/2 bungalow. Structurally sound--needed only a major cosmetic up-fit.

We renovated the master suite's bathroom and closet, which was clearly an old addition (looked like it had been done in the 70s or 80s). Didn't think anything of it. Sold the house to a nice young man who has been very happy with his home for many years now.

Well, our buyer contacted us recently. He's selling due to relocation. He's got a buyer, but the buyer is hesitating because that old addition was never permitted. His buyer is concerned it wasn't done right, simply because there's no permit. Our buyer was asking if we had any info about this addition. I told him everything I knew. I suggested he contact the city and request a variance or waiver, since this addition was done long before even we purchased the house. He's getting nowhere with the city.

He's understandably frustrated, but I just don't know how else to adivse him. As an aside, I'm wondering why his realtor isn't helping him with this problem.

BTW, I know better now--before I buy anything, I always research the permit history and the tax record to verify that everything is legit. If it's not, I proceed with caution, if at all.

I give major props to all of you who took the plunge all alone. My situation was a little cushy.

My husband has a very good job, and I had a pretty good one too. But, face it, secretaries don't go too far. And I was spread thin, juggling a full-time job, managing a household, taking care of aging in-laws who live with us, and managing our fledgling investment business. But I managed. Sort of. Honestly, I was doing everything, but I wasn't able to do all of it well.

I was, of course, chomping at the bit to quit the J.O.B. and focus on the important things. We ran the numbers regularly to see if it was safe to jump ship. I could just taste it!

One day, my sweet hubby took one look at frazzled me and said it was time. It was a little too early--things were a little tight for a few months--but then we settled into our new situation and did fine.

Of course, if we didn't have my husband's job, I would have had to keep working until . . . well, until about a month ago. It's only now that we bring in enough money to, not only replace my salary, but always have a good chunk in reserve for repairs, etc.

Cudos and Bravo! to all of you who are taking this exciting step toward securing your own future.

You asked what was better/worse than expected about self-employment. I love just about everything about it. I learned, however, that I work better in a structured environment. At the J.O.B., I had to arrive at a set time and complete a set list of tasks and leave at about the same time, etc. Of course, I hated it. But without that structure, I sometimes find I don't know how to get started some days, and I end up spinning my wheels. That's how I learned that I'm mildly ADD. So, in learning this, I learned that I need to mentally decide that I have a schedule, and I really try to stick to my lists and tasks and such. It's not easy. But I love it.

Our very 1st house was bought from an estate sale. We paid about 75% of value. But that was before we were involved with investing.

2nd house we paid full price. I really don't mind full price for my primary residence. We were there 10 years and made a killing selling it right before (I'm talking 30 days) things really started to plunge.

The house we live in now, we bought at an estate auction--paid about $30K less than it was worth then. We immediately rented it out (all we had to do was clean it), and kept bringing in good rental money for about 4 years. Then we moved into it and renovated it while we lived here. The plan was to flip it. I would still make money on it if I sold it now, but not as much as I'd like.

We're going to rent out our current home for awhile and see how the market goes. I'd like to sell it for a tidy profit before the capital gains grace period runs out (gotta live in it for 2 of the last 5 years or whatever).

We're almost done building our dream home. I can't wait. We bought the land several years ago for a good deal--not a steal, but good. It's still worth at least what we paid, and probably a little more. The builder we used is priced very fairly and does a great job. The house will definitely appraise for significantly more than our investment. But I wouldn't care if it didn't. This is my personal home, not a business investment.

Does your mortgage company or the bank that has your car loan send you reminders?

"Reminders" should come in the form of a late notice (with late fee info attached) sent out by mail, email, text--whatever--as soon as rent is late. It's either due on the 1st or it's not.

Sending reminders sets a bad precedent, and tenants will expect to be coddled well into the future.

I too found that a few of my tenants were having trouble making it on the 1st. Turns out they could never be sure if their last-day-of-the-month paycheck deposit got through in time. So, I gave those tenants the option of paying by the 5th. They were thrilled, and now the rent is no longer late. But I do not remind them. I am too busy for that.

Hi there. We're about to finish construction on our own new house in the Lake Wylie SC area (York County), and we need really great financing to refi this place.

This will be a JUMBO product. We have excellent credit and all the documentation you can stand.

Looking for the highest LTV, lowest rate, lowest points, absolutely NO PMI, will consider a 1st and 2nd.

Contact me at [REMOVED] with the run-down on your terms.

Hello. I have begun to encounter REOs being sold subject to the following: 24 CFR 206.125. I know this clause relates to reverse mortgage and due-on-sale issues.

However, with these same issues, the selling agent will not accept anything less than full-price offers. In fact, it is often so stated in the listing, blamed directly on that particular bit of the code.

What's the deal with this? Why can they not accept anything less than full price simply because a reverse mortgage or due-on-sale issue is at stake?

And, more importantly, how do I play this game so that I can get these houses at the low-ball prices I'm used to getting? :wink: