All Forum Posts by: Jack B.

I'm with you on that, but I never accepted money to run background checks until I'd already chosen someone. I'd ask what I'd find on it beforehand and then verify it. I felt like I didn't want to make a couple hundred bucks off of people that I'd inevitably end up disappointing, so not giving them an explanation seemed easy as they weren't in it for anything.

I'm wondering if people are more demanding if you've taken their money but not chosen them. Do people get more upset in those instances? Just curious...

Only once did I have one person ask for their money back...except he lied to me 3 times during the tour when I asked him about criminal and credit history AND on the application he lied on both counts. When I ran him he turned out to have been kicked out of the military, evicted from military housing, a felon for child related sex crimes (sent a girl a dirty pic, she was underage), the list goes on.

He initially tried to claim it was a different person...with the same first, middle and last name, date of birth and SSN I asked him? He then changed his story to it was reduced to a misdemeanor...except he had just printed 2 lines on his home computer saying that. Literally it was just a simple 2 sentences, not even remotely close to official looking, and I pointed that out and the fact that if that was the case the government records would reflect that.

He ended up threatening me. Mind you, I'm a grown man, I'm, let's just say, far from defenseless and used to protect some of the wealthiest executives on the planet for a living. He and his friends were super skinny little losers. I reminded him that he signed the application noting that the application fee was non refundable and that he not only lied on the application but 3 times during the tour when I asked him about credit and criminal history so it was his own fault and trying to go up against me would not work out the way he thinks it will.

I then contacted the Cops, because his application noted an address that was his parents address as his current address. Except when I looked up his sex offender registry, he was listed as homeless. The detectives called me back within an hour and asked for the application, they were super interested and told me they had suspected he was really living with his parents. I presume he was arrested. I never heard from the loser or the police about anything again.

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Can't get a hold of their references, claim they are employed, offer last years tax return, but when I decline and ask for a recent pay stub, I never hear from them again...

I've had so many weirdo's apply recently who turn out to be lying and are unemployed, living with friends or can't provide proof of income. One guys landlord actually told me he hadn't paid rent in a while...yet the guys co applicants were like oh he has a corporate job, I know me and the other two are unemployed but he has a corporate job...yeah, one that he can't provide an offer letter or pay stub for and he claims he started a week ago...

Stay alert out there folks....You should literally check EVERYTHING twice like you're looking for a reason to deny them.

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Can't get a hold of their references, claim they are employed, offer last years tax return, but when I decline and ask for a recent pay stub, I never hear from them again...

Stay alert out there folks....You should literally check EVERYTHING twice like you're looking for a reason to deny them.

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Bump

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Originally posted by @Account Closed:

Originally posted by @Jack B.:

I'm waiting for a dip also to 1031 some of my properties again. The only question right now is whether I should cash out REFI any of them. I'd get a lower rate and sit on even more cash waiting for buying opportunities that are not time and rule contingent like 1031 exchanges are. Only downside is tax benefits go down (can't deduct part of the interest) and cash flow goes down (given that cash flow goes down the partial interest deduction should not be a big deal so I might end up showing no income on the returns where as right now they are showing a profit). Thoughts?

The idea behind the cash out refinance is not to use current cash on hand, to use that to diversify into other assets, only use existing dead equity in my houses that are sitting at 50% equity positions, some much much more.

Depends. You are in Seattle and if the properties are in Seattle, I think you can see some serious tax increases and other risks going forward. The city leadership is bonkers. I sold my properties in Fauntleroy, Magnolia, Madison Park, Columbia City and moved the money to places they actually like landlords, AZ and TX. On the other hand, if your properties are already in safer locations, I'd cash out refi and in about September start buying agin. There will a lot of willing sellers and quite a few distressed ones.

No way in hell I'd ever own property in the city itself. I own in the surrounding suburbs. I know how the "leadership" there is mentally retarded and publicly communists.

Yeah I'm anticipating a dip in the coming year. Foreclosures and evictions are soon to come. Rents will likely rise as the demand rises but the supply of rentals is down. Also foreclosures will increase the supply of housing and help drive down prices a bit.

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Originally posted by @Account Closed:

Waiting! Waiting! Waiting! I hope you are running on those batteries with the bunnies in their ads. It is going to be a long long time before prices drop.

It is great to have a ton of cash when the market hits the bottom like 2008, but I don't think that will happen again in our lifetime.

Personally, I like to be in the game all the time. Since we can lose a lot of money while waiting for a downturn, I am constantly looking for other avenues e.g. buying at the live auctions, looking online every day just to keep up with prices, flipping trailer homes, or just working my regular job a little harder to make more money.

Ummmm....multiple economists who predicted the last recession said that housing prices will dip in the near future. Evictions and foreclosure moratoriums are soon expiring. Common sense dictates that those factors mean prices will soon dip. Also studies have shown real estate has cycles, and is driven by supply and demand. Those of us who studied economics understand these principles. No one ever said a 2008 like housing crash but you....

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Originally posted by @Twana Rasoul:

@Jack B. Great rates on cash out refi. Waiting to 1031 if prices drop you’ll still have less equity as well to exchange.

Best of luck

You don't really understand the math behind it clearly...when you buy during a dip and exchange 1 property for 2, despite all 3 properties having gone down in value, you are coming out way ahead buying two discounted properties.

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Originally posted by @Shiloh Lundahl:

@Jack B. When you say “demand clause” do you mean that they can ask/require certain things from you or things for you to do in order for your loan to be in good standing and if you don’t do these things that your loan could be called due? Those are called covenants at my bank. And yes my portfolio lender does have those requirements on my portfolio loans.

No that's called a default clause. A demand clause is where the lender can call the loan at any time for no reason. Covenants are where you agree to keep the property in good condition, insured, etc.

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Originally posted by @John Koster:

On paper the duplexes cash flow better, but in my experience, they never seem to live up to the pro forma prognostications.

The downside about duplexes in Cleveland is turnover costs & maintenance in general. Duplexes tend to attract people looking for a more temporary situation, whereas single homes attract small families looking for a more stable situation. I don't think I have ever gone a year without at least one tenant moving out from each of my duplexes. In comparison, I think I have only had one tenant move out after a year from one of my SFRs. Turnover costs kill cash flow.

Also, I have had 3 or 4 evictions over the years - all from duplex tenants. Zero from my SFRS.

This. MF turns over far more frequently and attracts a lower quality, blue collar tenant. I have had Doctors and Executives rent houses from me. Never would they rent a duplex lol. The one apartment I rented out turned over every few months, very temporary situations. One guys divorce ended, another guy moved out of state because he got his gf pregnant, another one moved out of state to be closer to family. They had no roots here and could move everything they owned in a minivan....

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Cleveland, Ohio

Originally posted by @Leonard Chapple:

@Joe Splitrock

I forgot to add that I am 49 now and want to do REI full time ASAP.

Rushing into things is a dangerous game. Take your time and figure out what you are doing before you are worse off.

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All Forum Posts by: Jack B.

Jack B. has started 419 posts and replied 1844 times.

Post: People with destructive, wild, misbehaved kids during tours...

Post: Another COVID scam applicant...

Post: Another COVID scam applicant...

Post: Does a rental have to be occupied for a 1031 exchange

Post: Cash out refinance or not?

Post: Cash out refinance or not?

Post: Are you buying now or waiting to buy at a dip?

Post: Do portfolio lenders usually have a demand clause in their loans?

Post: Duplex vs SFH why shouldn't I?

Post: Share Your Retirement Age