All Forum Posts by: Sam Erickson

 Same to the north in Milwaukee. I get more people reaching out to me from across the country then I do in my backyard.  I'm sure your seeing the same thing there.

Seems like the Midwest is the place to invest these days, rightfully so though with some of the deals that can be had.

Great job!  Those wood floors are awesome. 

See if you can get the seller to extend the closing date a couple months, and get the cash into the bank so it can become "seasoned".

Unless you can purchase all cash or like @Andy Tomlinson suggested and can find private money, you will need to get the cash into an account.

Last option and unlikely would be to try to prove where the funds came from and hope the bank agrees to use them.

Just wanted to jump in and tweak the 50% rule that @Account Closed listed above.

50% is usually used to figure out what the max mortgage can be on a property (max Purchase price)

Example:  Gross rent $1200/month.  You then assume half (50% rule) goes to expenses.  Your then left with $600.  Assuming you want to make $100 per door per month your left with $500 for a mortgage payment. Based on the terms you can get from a bank then work backwards to a purchase price.

Its very important when using the 50% rule to pull the expenses out first, and then the mortgage.

Hope this helps!

The way we do it is we enter into the JV with our LLC. Our partners in the deal also have their own LLC set up so the actually JV agreement is between the two LLCs.

Like @Princess Henderson said though I might thinkk about creating a separate one if you own properties under your current LLC. I would think by adding them to your current LLC it would defeat the point of the JV and all you would need then is an operating agreement calling out the duties of each member of the LLC.

Also like @Steve Vaughan said wouldn't hurt to talk to an attorney. We have one draft our JV agreements.

@Kizzy Robb for that amount I would think peer to peer would be your best option.  Be prepared though, depending on your credit and how risky they determine the investment to be you could pay as little as 6% all the way up 36%.

Yeah, lots of guys do that. My properties are single family so all the utilities are either put in the tenants name or I bill it back to them so water isn't a concern of mine. But I think alot buildings that have a shared laundry area have coin operated machines.

There first rent payment is due in August and is for the fall semester the amount is $6,000. In January their second rent payment Is due for spring semester and is $6,000. Their final paymen is due In May and is for the summer and is $2,400.

It's a one year lease but they only make 3 payments.  I don't why it's done like that but that was the norm when we bought our first place. 

If you break it down its $1200 a month. It looks like they are getting a deal for summer which they like though because a lot of times they don't even live there the whole summer. I'll we care about is it breaks out to the 1200 a month.

We pay for the lawn to be taken care of. At first we had the students do it but they didn't do a good job and it wasn't worth the letters from the city and the compliants from the neighbors.

We don't furnish, the norm in the area is that the houses are not furnished.  They have use of the yard as part of their rent. 

I Usually don't get Co signers.  My are us unique though as the students only pay rent 3 times a year. (Fall semester rent,  spring semester and summer rent). They also pay a month or so in advance before reach semester. 

Been renting to college students for 7 years. The cash flow is great as they pay top dollar. 

For most of them signing a lease is their first action as an "adult" and are on there own. They think they know everything but really know nothing. Make sure you explain how the lease works, can't tell you how many times one of their roommates don't pay their share and then the other tenants get mad at me because I send a late notice to all of them.

Like someone said above though most of the time getting rent is no issue. 90% of them their rent is either paid by mom and dad or through their fincial add.

Slight more wear and tear on units but nothing extreme.