All Forum Posts by: Dale Stevens

I am in Downers, we are all pretty close. I recently had breakfast with a guy in Hinsdale. He has been investing for 20+ years. I learned more in that 40 minutes or so than I had at any seminar or book. 

I noticed that as well. I am going to one on the north side on the 9th. Lots of game. 

The minute a tenant is late, you post a notice. Every tenant has a "Story" or an "excuse". As if the landlord doesn't have bills to pay themselves. Ask yourself this, if you supplied utilities, water,e tc for the tenant and you didn't pay the bills for it. Would they be ok going without or would they report you?

This isn't about friendship, this is business. FILE THE EVICTION. And in the future, the minute they are late, FILE THE EVICTION. You will be amazed how quickly they come up with the money.

@Brian Gibbons you briefly touch on the subject I want to get into.

But first let's speak to what this guy says. My answer is 'WELL NO DUH!' If you don't realize that "Gurus" aren't investors and are simply peddling their wares. They aren't into real estate at all. They are nothing more than information marketers travelling the country giving you their infomercial type pitch.

I attended a local meeting, and a point was made I agree with. "If their program was so good, so easy, to where they could work from home in their underwear, etc" why are they travelling around, living out of suitcases and hotel rooms pitching their system?". 

Back to Brian's point about regulations. Yes Dodd Frank is here, but each local municipality, city, county, state, et al have their own unique rules, codes, regulations, licensing requirements. From if it is legal, to what kind of materials must be used, to what must be contained in lease documents. A "National" guru that isn't active in your market, can not share that information. If you use their standard "lease template" and it doesn't comply locally, you could be hurting in a bad way. 

You must honor the leases, if they are indeed valid. So get the current leases and review them for terms. IF they are month to month, just give them 30 day notice to vacate. Since you have a few, are all units occupied? You can start renovating the vacant units, then as the current occupants lease comes up, you move to those units after they vacate.

If you do not want to wait ,you can make your offer contingent upon the present owner getting rid of the tenants, or you can buy it, and offer to pay the tenants to move out and have a mutual termination of lease agreement signed.

At $100 positive a month (based on your numbers) you are wanting someone to put in $230k+ in cash, so they can earn $50/month as a partner??? $600/year return on my $230k? 

I think you see the issue there right?

You can't offer on this deal based on 4 unit valuations. It is a 2 unit. If you want to make an offer as a 2 unit, do it, but at 469, it isn't a "deal".

You are making a lower return on your cash in (even with all 4 units), than you would as a simple private lender. As a private lender you wouldn't have to worry about inspections, losing units, getting fined, violations, etc.

So is this a deal.. not in any definition of the word "Deal" I have seen.

Ever think there is a reason some people property managers and have never become owners? Because they make foolish decisions such as "holding" a place.

This thread is full of advice, some good, some down right awful and incorrect. Here is the basics, Most banks do not hold onto the loan they may. They sell off the loan to a loan service company that is backed by Fannie Mae or Freddie Mac. This is why your bank doesn't do the loan to the LLC, because their ability to resell it, make a quick profit then use that money on another loan is drastically reduced.

So instead go to a lender that understands small business, and holds the loan (Portfolio) in house. 

If you do that, you can indeed have both unlike what some people have posted. How do I know this? BEcause I have and continue to PERSONALLY do this!!! 

Here is my question, do you want to invest quickly? cheaply and roll the dice on long term issues/liability? Or do you want to take a little longer time now, ensure you have the right business foundation to build long term legacy wealth?  (FYI Fannie and Freddie cap loans in your own name at 10, so once you hit 10, you are done anyway)

@Hugh Scarlett - my team and I have done several tax sales, and have found some success in it. We also buy properties from those that acquired them through tax deed foreclosure. (If you need an attorney reference let me know privately)

@Larmon Cummings Jr - I met the members of my team at a meeting there in Hammond. We now have over 400 units in NW Indiana as rentals and several more flips. I have gained my peace of mind after many years.