All Forum Posts by: David Krulac

@Craig McCarter  That issue should have been addressed in writting in the lease agreement.  Also some state/local regulations might be in play.  In general you can't double dip and charge the old departing tenant while alos collecting rent for the same unit from a new tenant.

Go to every REIA meeting you can find, where there are reaal estate investors. I was in NC in April nd spoke in Charlottte, Raleigh, and Wilmington NCREIa meetings.

@John Irwin  It would depend on the mortgage lender, some might want immediate payoff envoking the due on sale clause, while others may be just happy to get payments.  In reality if people don't pay their taxes, they usually are not paying their mortgages either.  Then the time cycles usually come into play.  Mortgage foeclosure in PA is Judicual and typically take a year + to get to Sheriff Sale.

Tax Sale in Pa. takes 2.75 years to go from delinquentcy to Tax Sale.  Therefore the time frames don't align and presuming that people logically stop paying their taxes and mortgages at the same time, the Sheriff Sale would happen long before the Tax Sale. 

The second thing that happens is that many mortgages include escrow for paying the taxes.  The lenders pay the taxes out of the escrow.  But I've never seen a case where the lender took moeny out of their own funds to pay the taxes.

Obviously logic does not always prevail. 

@Aristotle Kumpis  There is no reson you can't combine buying Infill lot with Build to Rent.

I Built a rental for a specific tenant.  They has specific requests.  First I showed them my existing rentals, then I showed them properties listed for sale in the multi-list.  None satisfied their very specific requirements; so i suggested that I build them the house they wanted.  They signed a three year lease, and occupy the house of their dreams.  We jointly took part in the design phase, and they got what they wanted and I got what I wanted. They have stayed now for over 20 years.  Perfect tenants in the house they want and never a day of vacancy. 

its against HUD rules to acept money under the table. If they find out HUD will kick both you and the tenant out of the program. HUD publishes the Median Fair Market Rent on their web site for the entire country. So you can know what they will pay before even advertising your rental. web site is HUDuser.org look for FMR, Fair Marlet rent

Hard money lenders, based on the investment property value, not your credit.

Private lender, start with somebody who knows and loves you, and go from there.  contact people in your circle who have assets, like doctors, dentest, and high income people.

Sell part of the deal to an investor with the assets or source for funds

Option the property, then market to somebody else at a profit.

Partner with somebody else who compliment your skill base as well as you finances, don't partner with somebody else who has no money or sources of money. 

The first 11 properties that I bought were 100% financed in one way or another.  When starting, I say "borrow as much as you can for as long as you can." The income from the property pays off the debt, while you get the tax deductions, equity build up and appreciation.

As to why people pay cash, many don't know, like or understand other alternative investments.  Everybody thinks they understand real estate, after all its just walls and a roof?  

WE've tried to get bankruptcy properties and after buying and selling more than 1,000 properties for my own inventory, never sucessfully got a BK.  All deals must be approved by the BK judge, who has a fiduciary interest in getting the highest price to satisfy the creditors.  We have submitted fair offers considering the condition of the property (sellers don't keep up with the maintenace and repair as they should, for a property that they are going to lose and get no money only some debt relief.)  We have had much more sucess buying foreclosures, REOs, Sheriff Sales and Tax Sales where we have bought hundreds of properties. 

SW First Star (very light gray)  SW Creamy  SW Lulled Biege,  have used all.