All Forum Posts by: Eli Kallison

It is insured as a rental. The problem is, I don't have purchase receipts for the contents in the home and everything is considered 'borrowed' instead of personal property. Borrowed property isn't covered under the agreement.

Hey BP,

I'm currently selling a rental property of mine in Los Angeles. The staging contract outlines that I (the seller) is 100% responsible for any loss or damage to the staged property at full retail price.

I called my insurance company and because the property was a rental property (and is now vacant), they have no options for coverage of the staging material. 

Does anyone have any experience getting insurance for staged furniture or suggestions about how to be protected in case of a loss?

-Eli

Hey BP,

I’m looking to purchase my first performing note. While there are plenty of resources related to non-performing notes, I’m having trouble finding anything that can give me guidance on 1st position performing notes. There seem to be the following areas that I need some help with:

Financial Analysis

Local market conditions and the property notwithstanding, analysis of the mathematics of a note seems relatively straight-forward. I’m not looking for risk analysis here, just black-and-white analysis of the financials assuming all risk is equal.

It seems that you want to buy an unpaid balance with as high an interest rate as possible, at as much of a discount as possible. What else do I need to consider? Assuming I want long-term cash flow (primary goal) and to protect/grow capital in the process (secondary goal), what benefits or drawbacks do balloon payments have? Are there other repayment factors I need to consider?

I need guidance here.

Risk Analysis

This is something I’m more familiar with. Analyze borrow’s ability to repay, credit score, seasoning of the note, property condition, value, location, market trends, etc. I feel more comfortable with this.

Logistics of Buying a Note

When you buy a note either from a broker or a seller, what documents do you need to ask for? What is the primary thing to look for on each document? Does the borrower need to provide anything like insurance documents, etc that would be important for me to look at?

When you’re ready to purchase, what legal resources or paperwork do you need drafted? Who does this and how much does it cost?

On-going Upkeep

How do you make changes/amendments to the note assuming something happens like property taxes or insurance goes up or down. Or, the borrower and myself agree to make amendments. Is this done through a RE attorney?

What do I need to look out for if payments are being made on time?

To what extend do companies who service loans get involved in collecting late payments, etc? How much does it run to have a loan servicing company collecting rents, and is this recommended?

Any information would be much appreciated!

Thanks Jeff, I appreciate the information!

Hey Hans Wold I'm looking to make similar moves to you. Shoot me a message if you're interested in a partner with capital.

Hey BP,

I'm interested in getting involved in private lending (and the purchase of performing notes). Much of what I have read regarding both private lending and note purchases is that to start out, one should work with established partners who are looking for additional capital and/or a partner in these types of dealings.

In my research, I'm having trouble finding the best types of people to reach out to to inquire about how I might get involved. What types of private lenders or organizations would be best to contact? Are there any podcasts or online resources to learn more about these types of practical details that you would recommend?

Thank you,

Eli

Are you guys worried about flooding and sea level rise long-term?

Hey guys,

As I get more serious about bigger (and more complicated) investment opportunities, I'm trying to figure out how to structure my team. Most investors seem to have a reliable attorney and CPA - anyone else on your roster?

How and when do you (or other investors you know) consult an attorney or CPA? What does each review for you? Are either particularly cost efficient for specific tasks? Will any gut check projections or financials?

Finally, does anyone have any recommendations for an attorney and a CPA? I live in Los Angeles, but I'm considering deals outside of California as well.

Any advice is much appreciated.

Best,

Eli Kallison 

@Jean Taveras @David McBrayer just sent you guys messages individually.

Hey @Taylor L, great questions thanks. Here are my answers, hopefully this will help:

What do you need out of a partner in order to close this first multi?

What I need most is some experience with multis or at least a willingness to dive in to research and analysis with me. I've got limited knowledge about rehabbing, construction, and repair costs so this knowledge would be valuable.

Do you have a specific geography in mind, such that boots on the ground would be helpful?

I've been taken most with some markets in Texas, Florida and Colorado. I'm open to investing in any promising markets, though.

How many investor dollars are you able to get through your own network, i.e. will you need your partner to do a significant portion of the raise?

I have significant capital to invest, and income to get a loan. I would expect a partner to invest capital as well.

To be bold, what value do you bring to the table, why would someone want to partner with you?

Here is where I bring value, and it's in a number of ways.

1. I worked as a data analyst + strategist, and can use available market data to spot trends and opportunities.
2. I work in marketing + advertising, and my primary background is in social/digital media which works wonders to market properties (I usually rent the properties I've managed within 2 days) AND it works to find and build networks of professionals in markets
3. I have successful experience land lording and property managing
4. I have knowledge of the SoCal markets and am familiar with much of the West Coast. While these aren't markets I'd consider to be first choice, I have contacts or people who are familiar with many major US markets.
5. I'm great with finances, from an accounting standpoint and in finding and minimizing expenses. I also bring $, and ability to acquire financing.
6. Most of all, I'm a hustler, I'm resourceful, and I'm reliable. If a job needs to get done, I'll find a way to do it and I'll do it quickly and effectively. This includes finding deals.

@Taylor L.undefined