All Forum Posts by: Christopher Lombardi

I recommend only investing with maximum knowledge.  Read a lot, listen to podcasts ( BP and Joe Fairless are the best), and study every aspect of a deal before you make your first purchase.  The learning will REALLY pick up once you buy something, so buy below your means and learn from your first deal to make each subsequent deal more successful.  

Does anyone know if any banks would allow an investor to self insure their properties?  I asked a few of my bankers as well as friends in insurance and no one seems to have an answer.  My issue is, with over 80 homes in my portfolio and an average insurance cost of $1,000 per unit,  I'm spending a ton on insurance each year and I never had to collect.  The only reason I have insurance is because the banks require it.  I would like to set up a separate asset account, that I would pay into annually, that would fund any damages to my property.   Has anyone ever heard of someone doing this with the bank's approval?

I have a luxury rental I just renovated and dont allow pets.  A prospect recently asked me if service dogs were OK.  I said, "yes, as long as its certified.  What type of dog?"  She says, "3 german shepards."  Being that I am afraid of dogs to begin with, I basically said hellz no.  I'm not sure why 3 were needed (for food allergies), but I'm pretty sure that was excessive.  

Hey @Matt B., cats are fine most of the time.  I have, however, had to rip out flooring in two houses because of cat urine odor that couldnt come out.  The security deposit didnt cover it.  So, if you allow them, I would make them pay the full amount of security allowed, as well as an additional monthly fee (i usually do $25 or 50) and you put in the lease that he is not allowed to have more than 2 (never know, he may become a crazy cat person and fill the entire place).  

B2R basically is a bank but just for investment properties. They make it easy to package together small or large portfolios and get one big umbrella mortgage on them. As long as you are buying properties in an LLC or other entity, most banks will do the same thing but with better rates (usually about 200 basis points better). I would try your local banks and ask for the commercial lending departments before going to B2R. From my experience, more often than not banks will offer commercial umbrella loans on SFR's. Talk to a lot of banks and get the best terms you can.

I don't think you can really quantify a neighborhood like that.  I invest only in Class A and B neighborhoods, and I wouldn't do a deal if i was getting less than 15% return.  Granted, most of my purchases need to be rehabbed, but as long as you are putting in lots of offers its very possible, and not that difficult to get higher returns in the best areas.  

Even if a contract says it can't be assigned, very few sellers who enter into an agreement of sale will care if it's assigned. They just want their money. Of course it's always safer to have the proper language but if it's something you may have overlooked it's probably not going to be a deal breaker.

Andrew,  I would recommend checking out Michael Blank's  website http://www.themichaelblank.com/.  He has a free booklet you can download on the steps you would need to take.  Its filled with good info.  

Hmmm... very interesting.

If you're looking for turnkey homes, it probably wont be more than 6% cash on cash.  Prices have been strong lately.