All Forum Posts by: Brant Jones

Had our first tenant approach us yesterday, unable to pay April rent due to job loss. I worked with our property manager to establish protocols to deal with this situation because we anticipate more of our tenants being impacted in the coming months. Our goal is to work with tenants impacted by this global pandemic, but at the same time we need to protect ourselves from less scrupulous tenants looking for a free ride.

We explained to the tenant that we are willing to work with him, but needed him act in good faith by upholding his part of our contract (lease agreement), and asked him to a) provide documentation from his employer showing that he was terminated (i.e. he did not quit), b) demonstrate that he had exhausted all options, including borrowing from friends or family, using a credit card, or obtaining a short term loan from a local bank or credit union, and c) pursued applying for federal, state and local assistance programs (we provided links and phone numbers to these programs). If all avenues for assistance were exhausted we would be willing to work with him, but he had to demonstrate effort.

Long story short, tenant was unable to provide documentation of termination (I stalked him on LinkedIn, and it turns out he quit his job in February - but waited until March 31 to contact us), claims he does not have a credit card and is unable to get a credit card or bank loan (his credit was good when he moved in 9 months ago), and he was unable to get through to any of the government agencies for assistance (sent a screenshot to our property manager of one 4 second phone call attempt to local housing authority).

Curious to hear how everyone else is determining which tenants are truly in need of assistance versus those that are simply looking to take advantage of the current situation and skip paying rent.

Has anyone successfully transacted a "subject to existing financing" deal in Wisconsin?

My agent is telling me that it is impossible to deed a property in Wisconsin with existing financing on it, but I do not see why the seller could not quit claim the property to my LLC and I take over payment of the mortgage for 12 months until I can do a cash out re-fi.

Hi @Lee Carlson, yes, this upcoming Monday from 5:30 pm - 7:30 pm. Hope to see you there!

Please join us for our March networking event at Escape Craft Brewery in Redlands.

This event is not sponsored by anyone, and there will be no pitches, fees or presentations. Simply come to meet and greet other real estate investors and real estate professionals from the Inland Empire. Everyone is welcome.

See you all there!

@Lee Carlson yes, we are planning to hold our meet up every 2nd Monday of the month. Looking forward to meeting up next month!

We are hanging out near the merch area in the front room. We can grab a larger table in the back if necessary.

Sharing with others is a great way to build a pipeline of potential investors, but you have to approach the conversation with the right pitch to a) help them understand the risks/rewards, and b) gain their trust and confidence that you know what you are doing so they will invest or partner with you, over investing in something else they feel is less risky. Walking them through a sample deal you have done, or even one you have analyzed, is a solid starting place to educate people on why you are passionate about real estate investing.

Keep at it - practice and persistence are the keys to success!

Please join us for our February networking event at Escape Craft Brewery in Redlands.

This event is not sponsored by anyone, and there will be no pitches, fees or presentations. Simply come to meet and greet other real estate investors and real estate professionals from the Inland Empire. Everyone is welcome.

See you all there!

Thanks @Andrew Postell! So if I understand your article correctly (which was great BTW!), if my LLC "lends" me the $55k in first position, and the owner carries back $15k in second position, a Fannie/Freddie lender can refinance me up to 75% LTV with no waiting period?

Has anyone used delayed financing in combination with a small owner carry, and does it meet the criteria for the six month exception?

I am looking to purchase a property at 70% ARV - mostly cash. Owner owes $55k, but wants $70k for the property. ARV is just north of $100k. My thought is to pay off the owner's existing mortgage, cash, and have them carry back a small note ($15k) for the difference. The numbers definitely work even with the owner carry note in place, but the goal is to refinance, pay off the owner carry note and pull out my cash.

Looking forward to hearing from the community on whether this is possible, and if it sounds like a good idea. Thanks in advance!