All Forum Posts by: Chris Davidson

@Rick Dreyer good options here already. I'd add check out bank statement loans, commercial line of credit, or shifting debt around if you have other assets. 

@Luis Prieto a second as an owner carry should work fine. Just make sure the lender will still fund it. However if she is only approved for 150k will she be able to make the payments on the first and the second? If not will you write it off, or foreclose on her? 

It can be great to help family, but set the expectations up front and get to an agreement in writing prior to closing.

Some escrow companies have a long term department where they can service the loan for yall.

Best of luck!

 Don't forget to check out the tax consequences as well. Reach out to some title/  escrow companies and see if they have a long term escrow department and they likely will have the paper work needed. However it could be worth paying an agent a flat fee to write everything up and making sure both parties are protected and everything is laid out correctly.

 Calculator's are only as good as the information you are putting in. Make sure you are using realistic numbers. Cash flow is correlated to debt service, you will have higher cash flow with a lower debt service. You can adjust purchase price and loan amounts to alter the debt service. Unless you are doing creative finance the terms are going to be what the lender says thus just use what is market.

Most properties are not investments, the largest sector of the market is for owner occupied thus not folks looking at cash flow and returns. Reach out to someone in your market and see what is realistic and how folks are investing.

Best of luck!

@Alex Molina tons of great responses here. There is no standard it depends on the market and where current terms are. Verify what the PM is saying and work on building trust. You can't make tenants pay what they aren't willing to pay. 

Best of luck!

 What does your lease say? If the tenant hasn't given permission and you haven't provided the notice required notice according to the lease I wouldn't allow access. However if you have provided the required notice you should be fine. 

However why does a neighbor have the key? Without knowing the neighbor and your relationship to them this could open up some unique liability. 

@Will Morrison Separate accounts for separate entities, but one(ish) account for properties under that entity for me.

A couple saving and Checking. Sometimes will open new account with a different bank if they have services need, or loans there to make it easier to pay those loans.

At the end of the day do what makes you feel warm and fuzzy. If you are planning on scaling having to keep track of many checking accounts will be a pain. Also moving money between them when larger items hit I imagine would be annoying.

 30 days from the sale or 30 days from notice? 

Has this worked for you in the past where it was more than an arms length transaction? 

 Having a track record helps, but to ease concerns having a plan and being able to show the seller you can refi the property if need be to pay off the note is the best way to ease fear.

@Chris Picciurro updates on applicable laws, and options/ ways to do things differently than have been.