All Forum Posts by: Varinder Kumar

@Balane Frece I have a similar goal my self, in regards to the target number monthly. Here is how I am going to do it. I call it “the mullet”. So I have a SFR already with long term tenants. The backyard has enough room for me to build a 1 bedroom studio, which I am going to Airbnb. So you got a long term tenant in the front and short term rental in the back. Business in the front and party in the back- mullet. Lol. But in all seriousness my goal is to have two “mullets”. Let’s look at the numbers... I purchased my SFR/LTR for $406K. With a balance of $355K remaining. Generating $2700/monthly. Now to build the STR in the back is going to cost roughly $70-80k. Based on my location I am looking to have a vacancy of about 5 days a month, tops. With a per night cost of $99 to start and some nights a higher amount, holidays, weekends etc. So this amounts to about $2500 a month. So I am looking at a ROI of about 2.5 years on $80K. With me so far? Keep reading... Now I am looking to duplicate this process. And by generating $2500 on the STR and $2500 on LTR (front house) I’m looking at $10K a month. With my career I have I should be able to have all of this free and clear in less than 10 years. Of course there are other factors involved and thIngs can go south in cwrtaIn ways. But to be honest thIs Is the best way in my professional opinion. MINIMUM INPUT AND MAXIMUM OUTPUT. Feel free to PM me to discuss other details. Hope this brings some clarity and good luck!

Depending on the contract it would determine whether or not there is a "due on sale clause" But honestly it really depends on the lender. Like @Account Closed said "banks are not in the business of calling a performing note due" their business is investing in debt and collecting interest, "velocity of money" etc. I would not bring attention to myself, just leave it the way it is until it comes up otherwise. 

@David Smit Contended poverty is an honorable estate, but if indeed it is contended it’s not poverty at all. It’s not the man that has to little, but the man who craves more that is poor. 🙏🏼

Hello,

So I wanted to know what exactly I can ask for the tenants to pay for as for as maintenance is concerned. I would like to have them pay for gardening, pool maintenance, and plumbing. Is there any issues I may face if I ask of this or am I entitled to add this to the contract so long as they agree to it? Please advise thanks!

@Colin Leach

Do you have any equity built up in the home? cash our refinance would be a good option to come up for a down payment o your next property. So you would want to do a washout refi however you have to make sure that the next property is able to pay for increase on your payment on the first one. So the next thing you buy would have to cashflow very well. 

I am looking to do a HELOC on my current rental and using that money as a down payment on my next investment. But I am keeping in mind that the next property would cash flow enough to give me a ROI in less than 3 years.

Let me know if you have any questions or if I missed anything here. 

Good luck!

@Zach Crawford

Generally when you are given a tape. The process goes as such. 

You find something you like and you submit an availability check. 

If available you submit your bid price according to the pricing guidance provided by the note seller, eg. it can be 50% of UPB but you may submit a little less than that, i usually do.

Once bid is accepted you should have a purchase contract between you and the note seller. 

You should then receive a physical collateral file if not already an electronic one - Collateral file is a a file which contains all of the previous mortgage paper work including things like alonges, deeds, borrower personal information such as bank accounts and credit scores at the time of the sale, pretty much all the paperwork submitted, required at the time of the sale. 

Once you receive collateral file you can go through it to make sure all paper work is valid and there (chain of title etc). I would board the loan with a servicer immediately if there is a borrower, If there is no borrower then you do NOT need to board the loan. 

You would want to get deed recorded under your company name if not already. There are title companies in the state of purchase that can facilitate this for you. 

You can always call the city and ask questions on what is  required for recording of the deed etc. 

You would need to get insurance, generally enough to cover the note price at least. 

If there is borrower i would have attorney send out a foreclosure notice right away, no need to deal with trying to do a work out etc. Just go straight to foreclosure, if they want to work it out they will come to you, trust me.

Pretty much at this point your attorney will handle everything for you and guide you, thats what they get paid for. 

Then you take over the property and utilize what ever exit strategy fits best to you. 

I may have missed somethings on here, but feel free to reach out for questions. Honestly this is not hard to do. Its a very simple business. Its just the analyzing the initial deal to being able to predict the outcome you want in your favor, which goes with any investment. 

Good luck!

Just wondering if anyone knows Toledo, OH well enough to know what areas of it are good areas. Also if you know in general what Toledos housing market looks like? Zillow says its a hot market. But is it a value appreciation market? Good for buy and hold? Any info would be great, Thanks!

Update:

I have submitted a rough idea to the city as to what i want to build. By glance they are saying it should NOT be a problem. How ever the city is yet to draft out their own regulations in accordance with the law since it is something that just past the beginning of this year. From what i remember they said the ADU cannot be more than 30% of the total lot size and more than 20% of the existing- dont quote me because i did not write it down when i was talking to them but i believe it was something along those lines.

So in a couple of months they should have their laws and regulations drafted out and i should be on my way. In the mean time i am doing my researching as to how to go about the best way of utilizing financing for this. I am considering a HELOC. Any other financial techniques or advise and input on this would be great. Thanks!

I have US Bank for my note business checking account, and during the setup process at the bank they asked what type of real estate business is it and it fell under renting, buying and selling real estate. I wouldnt go into to much detail of the business if you dont have to. But yeah in a nut shell they dont care what it is.

Shane Miller PM me I might have something of your interest 👍