All Forum Posts by: Christopher Pearson

We ask for two months security deposit, that usually covers any damages. We've never had little kids destroy apartments and most people make sure place is in good condition so they can get their security money back. Have a move in and move out check list and have tenants sign before taking possession and before vacating property. Document everything and take pictures before and afte. 

Become aware of fair housing laws so you don't make a costly mistake. They vary by state and sometimes by county so you want to make sure you know who is a protected class and what is considered a violation in your area. Note that there is a fair housing testing program and they send investigators every now and then. 

yes, some rehab we are going to add a boiler, hot water heater a bathroom and living space apartment. I'm paying out of pocket for that expense

We have an offering on a piece of property for $300K. We have a real appraisal for $360K from two years ago. Property has increased in value somewhat, do not know how much. The mortgage company I work with does both conventional mortgage and hard money lending. He would be interested in providing me with a mortgage but only at 75% of purchase price. He is not opposed to lending 100% of purchase price if I can give him the way on how to structure the loan.  We will have two tenants that will cover all monthly expenses and still have some small cash flow. Does anyone have insight to how I can tell the lender others structure their loans for a 100% financing? 

Under federal law, banks have to make the funds you deposit available quickly–usually within one to five days, depending on the type of check. But just because you can withdraw the money doesn’t mean the check is good, even if it’s a cashier’s check. She can ask you for the money back in the interim. It can take weeks for the forgery to be discovered and the check to bounce. When a check bounces, the bank deducts the amount that was originally credited to your account. If there isn’t enough to cover it, the bank may be able to take money from other accounts you have at that institution, or sue you to recover the funds. In some cases, law enforcement authorities could bring charges against the victims because it may look like they were involved in the scam and knew the check was counterfeit.

So short answer is NO. Don't cash that check

Great meeting. Thank you for all the info. See you next month.

I have a property in Farmingdale, NY that has been subdivided. I am planning on demo existing house and building two new houses next to each other. I am considering building both houses simultaneously to lower building cost. 

New construction sales price in this area is around 800K and I've seen current market for new construction has been a little over 6 months.

I have been told that two new houses built at the same time will possible affect the sales price and people perceive two houses built the chances of selling quickly are more likely. Do you have any input or advice regarding building one house at the time or building both houses simultaneously? I will be using hard money for construction. My concerns are: I would have a larger note and if they don't sale right away I will have to be covering the high interest. 

Thank you for your advice.

I've rented to a felon that spent 5 years in jail for aggravated robbery when he was young. He was a great tenant. I spoke to his probation officer and several referrals before accepting him. In your case I would never consider renting to this couple. Just move on, if you are not getting any commitment from better candidates and you need to rent asap, consider lowering the rent a little but don't take a bad tenant because you haven't find the right one yet.