All Forum Posts by: Eddie Sorrell

Hi @Jeff Piscioniere I am basically trying to find out the very same thing. I personally think that it would make a lot of sense to draw up a professional agreement with all of the terms so everyone understands what their responsibilities are in the process. I am reaching out to the group to see if anyone is able to share a template they have used to cover this very topic vs. recreating from scratch.

Hi All,

I am starting to get some interest from family with respect to leveraging some of their cash on deals to increase the rate of return they are seeing with their other investments. That being said, does anyone have some sample term sheets they have created for this situation that would include the responsibilities of the borrower and lender, the amount of interest for the term, time period and payback terms. I would like to draw something up so this conversation can get more serious. What I am looking to do is leverage their investment for just one deal at a time allowing them to be first lien holder on the property and then prove the value and work towards a relationship that will allow me to use the funds for say 6-12 months, with payback terms and interests allowing me to turn that money over a few times vs. just one property at a time. 

I appreciate any advice, this is such an opportunity!

After a recent close on a property, I have been working to collect rent from my tenants and for the most part this has not been a problem, but there is that one... Situation: current lease expires end of April with rent due by the first of every month. The tenant has shared intention of moving out and vacating unit, will be out by EOD April 1st, asked to not pay last month rent as he experienced issues with items in unit not working. We have no reports of this from him and issues are not noted in the home inspection report completed 1 month prior to closing. I responded that it is the duty of the company to manage to the lease terms and the April rent cannot be waived. That our company would take into consideration any defects as part of the walk through and this walk through needs to be scheduled for this weekend, April 1st. My intention is to collect the April rent when meeting the tenant for the walk through on April 1st, the tenant has not been responsive and I think that I will have some problems collecting the rent. I understand that the security deposit cannot be used in place of the rent and is due back to tenant so long as the condition of the unit does not require repairs beyond normal wear and tear. Advice as to how you would handle this situation?

Thanks all for the feedback and suggestions. This is very helpful. I am going to test the market increase with only one unit. The other 3 tenants have rented the units for over 2 years and interested in staying longer term. I will screen them, convert to our new lease agreement and approach the rent increase conservatively and on a case by case basis. I want to establish a good LL relationship and provide value for any increase that takes place.  After all, I am new to this and easing into a fully rented four-plex is a good start! Thanks again!

Hi All,

We just closed on our first buy and hold property, a four-plex. The units are currently rented, but way under the market price. I reached out to each of the tenants, confirmed they are interested in renewing for another year and let them know we will have a new lease agreement and rent increase considerations. I really need to increase the rent by 18% in order to meet my ROI numbers and to get closer to the market. Any suggestions as to how any of you have approached this in the past. I realize that is a large increase ($100) just to kick-off our landlord/tenant relationship, but this is a business after all. Suggestions?

@Account Closed Zillow and Trulia have some posts regarding averages, but I would recommend that you simply call the utility company to get some sort of idea and average for the property. Put a little sugar with your phone call let them know why you are asking and you are likely to get some helpful information. It has always worked for us. Best of luck!

@Ramzi Nuseibeh I actually like to hold each property security deposits in a separate account. Not every unit, but every property just to keep things separated. 

Tony Schreiner I would think you would want to coordinate with your closing attorney. They can hold the earnest money in escrow until closing and that would be my recommendation.

Thanks Thomas S. I am nowhere near $3k monthly rent roll on this property. The max the market will allow is around $2800.

@Account Closed thanks for the reply.