All Forum Posts by: Jesse Waters

Personally, I haven't had much issue renting my 2/1 apartments. For SFR I would go with 3/2, since it has the broadest appeal. I try to stay away from 1/1 properties, but I do have one apartment in a building of mine that is a 1/1 and have had no problems renting it.

It really comes down to your market, what is in demand and if the extra cost of 3/2 vs a 2/1 is worth the returns and ease or difficulty of renting.

If they specifically ask to be removed from your mailing list, then sure stop sending thing to them.  When they call, I would take the opportunity to engage with them, explain what you are doing and see if you can carry the conversation forward.  If you can get them to at least engage in conversation you can follow up with a quick note recapping the conversation and leave it open for them to reach back to you should their situation change & follow up with another 'touch' seeing if they have had a change of mind.  Worse case your post card ends up in their trash.

I keep getting mailers for a property that I own in another state.  My biggest problem is that when I get one of these mailers & call them back, I leave a message and never get a call back...

Hey @Laura Tokgozoglu

 welcome to BP, and welcome to Aiken.  Its a great place to live.  Hopefully we will see you around some.

Yes, balloon payments are legal.  They are commonly used in commercial loans.  A loan will come due after 3 or 5 years (balloon) even though its on a 20 or 30 year schedule.  And, as I understand it, seller financing is still legal under Dodd-Frank so long as the property isn't owner occupied.  Since the property is owned free & clear, then seller financing is really nothing more than private money lending, just with out involving a separate lender.

It should be, Some of those sources for money may want a 1st position mortgage against the property, which would be paid off by a refi. The kicker is that most banks want a property to be owned (seasoned) for a period of time before they will let you refinance, between 90 days to 2 years. This would be a question you would want to get with your lender about before using a LOC or some other funding source to purchase.

Make sure that you can carry the higher cost for the LOC/Hard money when you analyze a property. You don't want to be in a position where you are losing money each month from the start then have some issues with the refi.

To echo what @Edward Prochilo said, multiple offers are a good idea.  First, make sure that each offer satisfies your objectives & is something that you can live with.  Secondly, make sure that you are accounting for all your expenses, start with the 50% rule and go from there, I have found where I invest, we end up around 42-45% for actual expenses, so the 50% rule works for me.

Also, consider an offer with a balloon payment.  This way you can put it on a 20 or 30 year term with the balance due in say 5 or 7 years, ie refi through a traditional lender.  By then you should have the equity needed so you don't have to bring any cash to the closing & your initial seller is cashed out quickly.

I am in the middle of a deal on two single family properties from a retiring land lord, no mortgages, he isn't in a rush to sell and we are doing seller financing for a few years then I will move them off under a conventional mortgage.

Hope this helps.

It depends on the length of the venture.  I'm not an attorney, but I would think that its best to start a new entity for the new venture, everything is handled for that venture through that entity.  Just my 2 cents worth.

I have recently partnered up with someone on a rehab, since we aren't using any financing it cuts out some of the hassle. I know its not traditional, but, we are equal share. The tile will be held in the partner's LLC and I will hold a 1st position mortgage against the property.

Lucas. I am very happy with my PM. She is wonderful, she handles SFR's & small multi's. I'll PM you her contact info.

Not to be persnickety, but, a little more detail, please.  What is the property type, do you have network connections with a "bank or a big company."  

 Start there.

Hey @Jason Wiles thanks for trying to get something together.  I'm in town half the time, month home, month away.  If any thing happens while I am in town, let me know and I'll make a point to attend.  

All the best.

Jesse