All Forum Posts by: Greg Grant

So I own two properties currently (free and clear) and may be picking up a third soon, which I plan on paying for in full at closing.

One of these properties I currently own is our house, the second is a warehouse (w/ 2 bays as a rental) and the very likely third property will also be a 2 bay warehouse rental.

My wife and I would like to move into a new home somewhat soon, but this potential property came up all of a sudden and I can't see a reason to turn it down.

So hypothetically, let's say we get this third property in a month and in 8 months we decide to go for the new home. What would be the best method of a loan in order to secure the down payment for the new home? Should I do a Line of Credit on one of the warehouses?

For this scenario, let's say the home we currently live in is worth $240k, the current warehouse rental is worth $350k, and the upcoming warehouse will be worth $300k.

The new home price would be somewhere around $400k so I would like to have around $100k to use towards a deposit, and then once we get in, then we sell our current home and take that $240k and put it towards the new home (probably as a refinance to get the best rate/payment).

I currently don't have a loan on the current warehouse mainly because I wasn't sure of any loan programs that I would qualify for at the time I bought it. I do have a 785 credit score, so I'm not worried about that. My issue is I am a self employed person and not sure if they still have no income verification loans (since the mortgage bubble), like they did when I bought my current home.

And I'm not very keen on the idea of buying this upcoming property with a loan when I have the funds available to purchase it outright, why pay the interest on a loan I don't really need. Is that the wrong way to think of things?

So I own two properties currently (free and clear) and may be picking up a third soon, which I plan on paying for in full at closing.

One of these properties I currently own is our house, the second is a warehouse (w/ 2 bays as a rental) and the very likely third property will also be a 2 bay warehouse rental.

My wife and I would like to move into a new home somewhat soon, but this potential property came up all of a sudden and I can't see a reason to turn it down.

So hypothetically, let's say we get this third property in a month and in 8 months we decide to go for the new home.  What would be the best method of a loan in order to secure the down payment for the new home?  Should I do a Line of Credit on one of the warehouses?

For this scenario, let's say the home we currently live in is worth $240k, the current warehouse rental is worth $350k, and the upcoming warehouse will be worth $300k.

The new home price would be somewhere around $400k so I would like to have around $100k to use towards a deposit, and then once we get in, then we sell our current home and take that $240k and put it towards the new home (probably as a refinance to get the best rate/payment).

I currently don't have a loan on the current warehouse mainly because I wasn't sure of any loan programs that I would qualify for at the time I bought it.  I do have a 785 credit score, so I'm not worried about that.  My issue is I am a self employed person and not sure if they still have no income verification loans (since the mortgage bubble), like they did when I bought my current home.

And I'm not very keen on the idea of buying this upcoming property with a loan when I have the funds available to purchase it outright, why pay the interest on a loan I don't really need.  Is that the wrong way to think of things?

Yeah, don't beat yourself up over that.  Just consider it a learning experience.

As others mentioned, you'd really be kicking yourself if you got in over your head, either by buying both and running out of funds or by buying the first one and uncovering a massive renovation problem you couldn't see beforehand.  

I myself experienced the same situation but I just went by and looked at what the investor did to the house (once it was finished and on the market) and it opened my eyes to some ideas I never even considered.

You'll come across other deals.  Just keep "your" goals in check and take it one step at a time, it's easy to get in over your head.

Thanks for the info everyone.  I've had a couple bad tenants, but I can tell this one has a brain and knows how to run his business.

So I have a commercial warehouse (2 bays), I occupy one and I have a tenant next door.

This tenant has been here for 6 months and has been on time without any issues.  And he's month to month

But he came in this morning to pay his rent and asked if I'd be willing to give him a discount if he paid for the whole year upfront.

My initial thoughts are to give him some kind of discount (I was thinking of 5% off), (1) to keep him happy and (2) to have the peace of mind the unit is occupied and paid for the whole year.

So I figured I would come here and see what kind of suggestions/ideas you guys have in regards to how much of a discount to give him.

Have any of you ever been approached by a tenant with this kind of idea?

If so how did you handle it, did you give a discount?

If so, how much?

How did it turn out?

I've been in South Florida since the early 1980's and from what they were saying back then, we should already be under water by now.

@Brent Coombs

Originally posted by Brent Coombs:

Nope. As Judge Judy is fond of saying: "if it's not written down on the contract, it never happened"! Why should "arrogance" have to do with whether it's a deal or not?

@Brent Coombs

@Brent Coombs   ?? - Maybe you should re-read what I wrote.   Because that's exactly what I said.  A contract is not a contract until both parties sign it.  Meaning, you can add or remove whatever conditions/terms you want before both people sign it, then once both people sign it - that means both people agree to it.  And in your case, it would make Judge Judy happy.  Changing a contract is very common, it helps make both parties feel they are getting the fairest deal.

What I meant in regards to "the arrogance of the wholesaler" is that it seems many of them feel that they can ask for whatever they want in regards to terms and investors "have to" agree to it.  

@Brent Coombs what you said its partially true, but keep in mind - a contract isn't a contract until both parties sign it.  Anything can be added or crossed out before its signed.

The problem is mainly with the arrogance of the wholesaler, not the piece of paper itself.

@Rashard Alomari Exactly the way I feel.  Just haven't had a good experience with the process form local's yet.

@Brian Garrett tell me about it. 

@Bryan Feik Yeah $5-$10k I would be willing to pay a wholesaler as a finders fee.  

But I've seen where local wholesalers are trying to get up to $40k where I would be "lucky" to make $25-30k on the flip. That to me is ridiculous and I will not pay someone more than I'm going to make when I'm taking all the risk of the renovation.