All Forum Posts by: Jonathan Holmes

Well done it looks great. I am curious if there was any specific YouTube videos you would recommend that you used? I am a big fan of using YouTube for educational purposes and am always looking.

If I am following this you have a current mortgage that you wish to pay of with a hard money loan before securing a new mortgage to pay off the hard money loan. While I can’t really imagine a scenario that this situation would occur the answer would be it depends on you HML lender. They would legally be able to record a lien with the county which would then show up like any other mortgage. They would not have to do so but I can’t imagine why they wouldn’t as this would be the only way for them to actually secure the loan.

You almost certainly have been there long enough to establish residency. It doesn’t matter if you have been paying rent yourself or not they have to evict you legally to remove you. However, you really should find a new job and pay your rent assuming your landlord is a decent one they deserve to be paid what they’re owed.

Generally yes. You will find some of them to be inaccurate. From there it’s up to you to decide to skip trace them or not.

That would be the most conservative and safest way to invest in real estate. However, there are many draw backs. Firstly, you cash on cash return will be tremendously lower. Assuming this property is not a dog house in a war zone you will need to shell out significant cash to buy it and you will receive the same rent  as a leveraged property. While yours would not have the mortgage payment to make, a good leveraged deal will generally out perform a cash deal.

Second, you will have to save up an equal or greater sum for your next property. If you instead only put 20-30% down you could almost immediately repeat this purchase 3-5 times. That is assuming your debt to income ratio would support such a draw. This would allow you to collect rents from a few similar properties and each would be getting paid down by the tenant. Which leads me to three.

Third, one of the best parts of real estate investing is the benefit of having a tenant pay off your mortgage. Thirty years of this will build some incredible wealth. If you purchased multiple cash flowing properties and held them for long term your equity build up and net worth will far out perform a cash buyers.

Last, your total cash payment could be used to purchase a larger or nicer property giving you a greater return (if purchased correctly). If you pay 50k for a single family you have the cash flow from that one unit and all the equity in the house. If you put 50k down for a 250k four unit, you have four rent checks potentially and you equity grows every month. These number are obviously fictitious and have no bearing on any real deal but you get the idea.

That said their is something to be  said for all cash purchases. They may suite you personally better and there is nothing wrong with that. The most important part of a deal is that it is a good deal not how you pay for it.

You can also get 30 fixed rate traditional mortgages on 2,3, or 4 units basically the same as a single family. Any property that you can refinance and increase the appraised value will generally work.

I would never have a tenant call directly to a contractor or handyman. That is not they’re responsibility unless it’s a certain type of commercial lease or some kind of land contract situation. The calls you don’t want are for broken light bulbs clogged toilets this type of things. They can replace their own lightbulbs and work their own plunger. Leaking pipes broken HVAC and the like need to be reported to me and I want to have direct interaction with those contractors. Does your tenant know how much a furnace repair should cost? And sense this cost will probably be passed along to you why should they care if the contractor price gouges you? These issues should come up in any particular unit all that often anyway and therefore should not be a burden on your time. Basically I would want to train them to contact me for repairs that need a professional and as little else as possible. No complaints about neighborhood dogs or the trash collectors coming late or any nonsense like that.

Not a lawyer so this is not legal advice If it went from your parents name to yours and they pulled the mortgage the due on sale clause could already be triggered. Sometimes banks decide not to bother if the mortgage payments keep being made. You may consider transferring it into a trust instead of an LLC. You may even be able to have yourself as the beneficiary but leave the original loan in place. I think your parents would have to create it. You would then be able to name the trust as the insured entity and through it yourself. I would think your attorney that you contacted should be able to go through these options with you.

I would think the first straw is to contact the police in this situation. You aren’t the neighbors landlord as well correct? You have no way to mediate this unless you want to knock on the neighbors door and talk to them in person. If a neighbor is making noise and your city has a noise ordinance then the police are who you contact. It seems sometimes that tenants prescribe authorities and responsibilities to their landlord that they do not possess. I could see you working this out if you owned both units. Without this being the case this is equally as silly as if your tenant asked you to mediate a conflict they have with their coworker. My advice would be if you have been able to contact the other landlord and they don’t care to get involved follow their lead and advise your tenant to call the cops. Land lording is hard enough without taking extra duties on.

I don’t think the idea behind it would be to make a subpar offer beat a good one. It is more an effort to humanize your offer. In this context it could prove useful assuming your offer is close to a “faceless” offer. If you write the letter include the picture and request both the entirety to be forwarded to the seller the agent should do so. HIPPA has absolutely no bearing whatsoever as the only person whose HIPPA rights could be violated would be yours and if you request it to be given that’s the same as signing a release of information. Assuming you are your own guardian and have the authority to release your own information. I have worked in mental health for years and we regularly receive permission from clients to use their likeness in promotional materials.