All Forum Posts by: Clifford Paul

All my properties have kwikset smartkey locks. So easy a maintenance man can do it. LOL

I have been with my small town bank for 35 years and have closed over 45 loans to date.  All these loans have  one person that approves them... the commercial banker. All loans are keep in house. 

Since I got back into real estate investing in 2012 I have received more than $3 million in loans... with 5% down. I don't know anyone other than investors that have a relationship with a small bank or credit union that get loans like this. Oh and my bank has never tried to high Jack me on rates or fees. 

So why do I post on BP about finding a small bank or credit union that keeps loans in house. And how important it is to build a relationship with them... because it works. 

Full disclosure: I'm not a guru!

 I once rented an apartment to a guy who spent 25 years in prison for aggravated sexual assault. This was before I discovered using property management. 

In my case it turned out great. Always paid rent on the first of the month and keep my apartment in immaculate shape. 

Would I do it again "no" because my property management company is fantastic at screening tenants. Plus I didn't like my apartment address listed on the states sex offender list. 

With those massive security doors, I would reposition this property into a private prison. Then contract with the county jail to house their overflow.

 My first property was a rental. I lived with my parents until I joined the military at 19. Then I bought  houses everywhere I was stationed except overseas. 

 In high school  I had 3 jobs plus several side gigs. I worked at the local grocery store, my dad's construction company, started my own lawn service company. 

For side gigs I hauled hay, worked one summer in the oil fields on a pulling unit. Worked another summer in a foundry and worked another summer building mobile homes and portable buildings. 

I bought my first rental at 18 with all cash from  my jobs. Join the military at 19 and always worked a second job unless deployed or overseas.  Lived well below my means and built my portfolio to 30 rentals 2 vacation homes and 1 primary home. 

First question I ask inspiring investors when they want to pick my brain is what's your side hustle? I  usually get the deer in the headlights look. I'm finding that everyone one lately I meet wants to be wealthy but doesn't want to put in the work.  

 Hi Victor 

Here's how we have our RE debt structured. 30% of our portfolio 8 STR 11 SFR no mortgage and no more than 60% leveraged. With over 2 years of reserves.

I get beat up all the time from my investor friends about my dead equity. They are all leveraged  80+ % on their  portfolios with little to no reserves. Although we won't crash like the rest of the country on the next down turn. These guys are one vacancy away from bankruptcy.  

My advice is keep your cars... any loan under 3% is free money in my book.  Use your extra money to pay down your portfolio and build your reserves. 

Congratulations! I'm still finding deals on MLS. You just have to be patient and ready to move fast.

Get an attorney because most likely the tenant has also filed a complaint with ADA. That's a $16,000 fine. 

I have been using  Shaw 6.5 mm and so far everyone we have done is holding up great. What brand did you go with?