All Forum Posts by: Christopher Reeder

I found a property in my local market that fits some basic criteria for me.  While looking up the owner information, I found the out of state owner passed away June 30, 2020 but is survived by his wife.  I'd like to better understand is his wife plans to continue owning the property or if she would consider selling.

My question is how best, and how much time to give, to reach out to the widow without coming across as a real estate vulture.  Any advice is appreciated.

Chris

@Aaron Cook

I have not had a vacancy since learning of the watermark idea. A quick search online found a Digital Trend article with a variety of options, both mobile and desktop to look into.

https://www.digitaltrends.com/photography/how-to-make-a-watermark/

@Aaron Cook

While attending a local REI meeting, one investor recommended when posting your ad to always add a watermark across your photos. This is a deterrent for scammers taking your photos and creating their own ad of your property.

I have not used FB or CL for any of my listings (mix of SF and small MF).  I have been solely advertising using Zillow Rental Manager.  When Zillow starting charging the weekly listing fees in September 2019, I moved away from them to Apartments.com, Zumper and Realtor.com.  However, the lead generation from those sites were much less than what I had experienced from Zillow. Since then, I've gone back to Zillow and am paying the listing fee.  My units are not sitting vacant and my rental rates are slightly below the my comparable market rates.

@Justine Scheuher

My lease states the tenant(s) who has the financial obligation to pay rent and who I've vetted can support the payment of rent.  In your case, the 94 year old occupant.  The other 2 occupants are separately listed on the lease as occupants.  I do this for all adult occupants not responsible for the financial obligation.  If I get into a scenario where the lessee fails to pay rent, I have the names of all adults occupying the property and can properly file eviction documents on each of them.  Without this information, it is a bit more difficult to process eviction documents and not end up with a squatter who slips through the cracks.

Time to wrap up this BRRRR acquisition. This past week, even with COVID delays, I was able to close on my cash-out refinance for the property. I created $25,000 in forced appreciation allowing me to pull 100% of my downpayment and repair costs out at closing. Dropped my interest rate from 6.5% on a 5yr balloon to 4.5% on a 7yr balloon. Monthly cashflow improved by $150 from the debt restructure. The buildable lot is also not part of the new debt collateral allowing me to start thinking of whether to build or sell as a lot.

Time to move this equity into another property.

@Stephanie Simmons

I'm finishing a home that had septic problems.  The tank was fine, but the drain field was not working correctly.  The installation of a new drain field required a permit before installation, much like a building permit but from the Dept of Health.  The permit process included a soil test.

This is my first home where I've needed to replace the drain field but the process was straightforward from the septic company doing the work.

@Bernard Sanga

I have a tenant on social security who had always paid the prior owner in cash.  I spoke with my local bank who provided me my member # (I use a credit union for this property) so the tenant is not provided my account number.  I require the tenant to make the deposit on their own in accordance with the lease terms.  In 13 months, the tenant has been on time each month without any concerns.

@Greg Todrank Congrats on finding a property to move on.

A question you should ask yourself is if you are willing to accept the current seller as your PM, if he accepts your proposal.  As Mark stated, the seller likely is not interested in continuing the management of the property and is the reason he wishes to sell.  

An alternative option to propose is to inquire if he seller would be open to seller financing.  Some times they are not interested in the management of the property, but also do not have a plan for the windfall of profits that will come from selling.  For the seller, this results in a tax liability they might not be prepared to manage.  In today's financial markets, seller financing can help move a property to close at a reduced cost to the buyer on closing costs.  Terms are also negotiable and can favor the buyer compared to traditional bank financing.

Good luck getting it to contract.

I will add Citizens Bank & Trust. They have offices in Polk County, FL. Will lend on small multifamily inside LLCs and offer cash-out refi options with appraisal @ 70% LTV. 5 year balloon, 20 year amortization starting at 5.25%. 7 year balloon, 20 year amortization starting at 5.50%.

Contact Patrick Fagan

www.citizens-bank.com

My experience is limited to just starting the process of a cash-out refinance on a duplex.

@Chris Lawrence

I require a valid policy from my tenants. Though I haven’t had a tenant who renewed fail to maintain their policy, I have seen the benefits of this requirement.

I had a call last month about a fire started by a tenant. Their renter’s policy accepted liability for damages subsequently covering the full rehab costs associated with the repairs. Without the insurance requirement, I would have been required to file on my own policy and paying the deductible.

Chris