All Forum Posts by: Pete M.

@Rebecca Beam Was this a conventional loan, or a private money loan?  I typically use private lenders, and they're all pausing closing any long-term loans because there's no liquidity on the backend (no institutions or private buyers are buying the notes from them, so they won't close on them).

If you're talking conventional, they are generally still able to close.  Same for many commercial loans, though with tighter restrictions.

All,

Have some Sec 8 rentals coming up for renewal in the next few months.  Anybody successfully increased the rent through housing?  I know we have to provide non-housing rent comps that support an adjusted price and then wait for approval.  Do those rent comps have to be pulled by an agent, or what's the source for those typically?

TIA

I'm bullish on KC, closing on a property in a couple days, with another under contract.  Midwest cities tend to be more insulated during uncertain economic times (obviously can vary city-to-city).  You won't see the appreciation of other coastal cities, but fundamentals are good and cash-flow isn't too difficult to find.

@Vann Calhoune  We obviously don't know the full history like you do.  Did the non-payment begin before COVID19 kicked off?  I'd be wary of getting much support from a judge right now, unless you can clearly show the non-payment is not related to on-going events.  Even if you can file yourself, I'd suggest finding a good attorney to handle the process; one small slip-up can waste a lot of time and money.

Have you tried cash-for-keys with the tenant?

Now is the time to re-negotiate and get creative.  @Caleb Heimsoth makes some very valid points about narrowing down your comp range and getting more quotes for the work.  You'll be shocked on the range of prices you get for the same work from different contractors, and you need to know what somebody else will quote if your first contractor falls out.  In addition, home prices may (or will likely) be moving from where they are now, so you should plan for lower comps.  You can also ask the seller if they're willing to do some seller financing (if financing right now is an issue).  In either case, I'd go back and ask for money off for repairs plus more because of market risk.  Seller is the one who has to absorb the risk if this sale falls through, so your bargaining position is better than it was before.  With that said, decide now if you want to walk away from the sale if they sour on you... my opinion is that there are always more deals, and you should never "fall in love" with a property.  Build your criteria, quantify and crystalize them, and most importantly, stick to them.

@Alex Olson  Thanks for the feedback.  Still very early in the process and I'm waiting on financials.  I have a rough idea of what the sellers owe on the property, though I also have a feeling it's not worth that based on the actuals.  This property is off of 55th, north of State Ave.

Goal is simple:  buy discounted properties, turn them around through proper management and capital investment, thereby forcing appreciation and creating steady cash-flow.  I plan to sit on these types of properties for 5+ years minimum.

Thanks.

All,

Looking for some candid feedback on the Coronado area of KCK.  Looking at a large multifamily property in the area.  Saw a previous thread from a few months ago, but want to renew the conversation.  Property is right at 55th, which sounds like it's basically on the border of "rough" and "slum".  Crime map doesn't look alarming, but the nearby school ratings (from GreatSchools) aren't wonderful.  Property itself has been poorly managed with lots of deferred maintenance (to put it nicely).  Sounds like serious value-add potential, but can't change location.

Thanks in advance.

May be gov't SBA loan options available as well, but haven't looked closely yet.  Lots of businesses, including grocery stores, are also hiring to help stock, if tenants are looking for a quick job.  May also be local organizations offering rent assistance, which is obviously specific to each market.

@Joe Windsor  Completely agree with @Adrian Fajardo--save the attorney and eviction as the last resort, but also know your options and rights.  Most likely a five minute chat can sort it all out.

@Joe Windsor  It's the nuclear option and I wouldn't suggest starting with it, but if there's no existing lease and they're in the property, then they can be evicted.  I'd keep trying to be reasonable and contact them, make note of all your attempts (in case you do need to evict, to show you made good-faith attempts to be reasonable).  While I prefer using "the carrot" (like others have mentioned above), you should also carry "the stick" in your back pocket in case the carrot isn't working.  An attorney familiar with local laws related to housing, tenant/landlord rights, and the eviction process is a good person to have handy; you hope you never need them, but you inevitably will at some point.

Welcome to real estate investing, hah!  They won't always be this interesting, truly.