All Forum Posts by: Jonathan Wilks

This is more about your long-term goals, and how conservative you are. I personally would pay off my mortgage to create a higher degree of security. Once the mortgage is totally paid off. I would pay myself the mortgage amount to save up for a investment cash, and after you have a few of those. your cashflow will multiply quickly, and allow for growing your business at a conservative rate. If you don't like the feeling of not having a mortgage you can always refinance and have one again. 

First and foremost i would ask if they invest in real estate, and if they property manage or use a property manager. I would also ask what kind of investment they have done in the past or are currently doing.  If the realtor doesn't invest in real estate you better have time and strict criteria to work them through.  In addition show them a proof of funds, so they know you are not just a tire kicker and you want to find and close deals. 

In California, I would not disconnect their electricity if you rented it with it.  It would violate their ability to peaceful use of the property. I would just go through the eviction process, and get them out. I would be willing to pay them to leave also in a cash for keys scenario. 

I use additional sub contractors that do specific jobs, carpet, paint, and so on. It allows me to turn properties with-in a couple of days rather than weeks. Maintenance people i would use only if i wanted to keep them busy, but with 270 units they should already be pretty busy. 

I would highly recommend 

John Hamilton 

Hamilton, Mercer &Werre, LLP

2750 Bellflower blvd., suite 201

Long Beach CA 90815

1 (562) 425-7700

[email protected]

I would pay them a base+ commission, however i personally think acquisition is the last thing you should give up. It is the one thing that supercharges your business and keep is it moving. I would personally give up more operational task first. marketing and making offers. 

Interview them before hand.I still want to make sure they are not crack addicts. Where i live a section 8 tenant can be a single mom, or disabled individual most of the time. I also want to clearly define expectations of use of the home. 

You will usually pay for whatever the hourly rate would be. If you pay the hundred you might find yourself a handy man for life! I would pay probably $35.00- $50.00 with caulking provided.

The Public Administrator auctions approximately 125 parcels of improved and unimproved real property on an annual basis. Auctions are normally held monthly, approximately 7-10 times per year. Individuals who wish to obtain auction dates, subscribe to the email list, or obtain the terms and conditions may go to http://www.BIDKW.com. This is the place to gain more information for LA County Auctions

You could also look into just a cash out refinance, but it might be more beneficial to look numbers wise. If the property is cashflowing it might make more since to do that, and if the loan to value on both properties was 50% or less you should do pretty well. I would also recommend if you do that to get the lowest term financing and the shortest amortization you could. I believe doing that would create a pretty safe and healthy portfolio, and if you have any additional cashflow pay down the loan quicker and do it again.