All Forum Posts by: David Zheng

recently I was in the process of closing 3 properties at the same time. It was a freaking nightmare.

the banks needed info from each other, I needed to give future rent schedules, insurance companies got mixed up. Everyone was getting my mailing addresses wrong.

Just make sure if you want to close simultaneously that you explain to the bank your intentions. Your DTI is going to be the main concern considering you're taking on 5 mortgages at once and more often than not, any future rent payments won't be considered until after you report them in your taxes.

you're on the right path. The first step is admitting there's a problem. Like you said, you will need to start associating yourself with likeminded people if you want to really succeed. Your friend will have to discover that on his own at some point. But don't waste too much time babying and pushing him to fit your standards. just do you even if it means cutting him mostly out of your life. I've followed this philosophy with a lot of ex's and guess what, I'm at 7 units at 25 years old (working on an apartment building right now) with a full time @ wells fargo and I just started investing this year. I'm also a raver with a lot of "raver friends" but as long as I don't let them control me or waste my time trying to change them, I'll be where I want to be.

would definitely not look at a forum to get your crash predictions...people are generally pretty clueless and will post nonsense if its free to post. Just cause someone wants to buy a house doesn't mean they can. banks and investors know that too and will not just lend to anyone who 1. doesn't have money 2. doesn't have experience.

Forget about the past. look at this place as if it's the first time you're seeing it. Run your numbers and analysis as you would any other place and if it makes sense go for it.

Just cause a deal was great before doesn't mean it can't still be good now. good luck!

I usually have a 5 day grace period for payments. So if it's due on the 1st, I give them5 business days to pay. After that, the next 3 days they have to pay a late fee. After that, I file for eviction.

whats the reasoning for their late payment? If it's an issue where income is not at least 3x rent, I would get rid of them.

If this is your first deal, I would get an attorney involved. if not, you can always just grab a title company and they will give you some pointers. I'm doing my first sell by owner deal right now.

Amazing!!! Love these kinds of posts. Very very inspiration to young investors like myself :)

Keep up the great work!!!!!!

As everyone else said, the purchase price of all your places is a little high. I rarely assume property values will rise just to be extremely conservative. I usually have to satisfy a majority of the following criteria before I purchase a place: at least 1.25% rent/value, 10% cash on cash, 10% CAP Rate, net income of $100/renter.

You never know when the market will decide to screw you over and significantly kill your value, so try to make more of an effort to get the properties at a discount. Other than that, congrats and good job!

I am 25 years old, started this year, and am working on purchasing my 7th rental. We are in the same boat for sure! 

I would definitely have a 3-5 day grace period. Stuff happens so that you may not always be able to pay on exactly one day.

Personally I give my tenants a 5 day grace period. I also send a mass email/facebook message the day before as a reminder.

Exactly what everyone else said. Check background, credit, income, etc. first and foremost.

After that, I would personally ask for a free dance from her/or friend once a month as part of rent :p

(kidding)