All Forum Posts by: Joseph Beilke

As a Firefighter and Real estate professionals, I would contact the Tenants Property and Liability insurance provider to cover the difference.   If you did not require your tenant to carry this type of coverage and not name you also on the policy as insured you may be out of luck.  

I would then approach the tenant and work out a solution that is far for the both of you.  I recommend not dipping into the deposit unless you have no other choice to pay the bill.  

@Robert Ellis  

It wasn't free but it benefited everyone to structure the deal that way.

@Robert Ellis

The builder used their line of credit to fund build. 

Just catching up on this thread,  I agree with @Nathan Gesner,  It migh be best to pass on this one.  They very well might be 100% on the up and up.  But you don't have the experience to handle this one, if they are not.  The risk level is too high, I've been around the block a few times and I would most likely pass too.  

@Robert Ellis

Here are the basic numbers

Buy Land $53K Cash  2022

Investor partner 1 Cash Build $435K, Tenants placed, Appraisal $560K Early 2023

Builds 2 and 3 Builder funded including land. $511K Each. 

Build  2 CO Sept 2023

Build 3 CO  Nov 2023

Apprised at $535K. Late 2023 

Tenants placed Oct/Nov/Dec 2023

Portfolio  6.95% loan/cash our refi 400K from first build,  apply  200K to each of the next two builds, 70K  cash from investor partner 2.  Dec 2023

Build 1 PITI $2990 Rents $4100. Duplex 3/2 2 Car with EV chargers

Build 2 PITI $2675 Rents $3700. Duplex 3/2 1 Car

Build 3 PITI $ 2675 Rents $3700. Duplex 3/2 1 Car

All fulling fenced in, No carpet and we allow large dogs with Tenant Liability insurnace 

I Keep 8% management fee, all remaining funds go into start next build. No investor cash payback

Next build I will infuse about 50K cash working on construction loan.  Working with builder now on features, finishes and pricing.  Hoping to be right around $450K for build, land was $47K

@Vasudev Kirs

I'm not familiar with CA law.  So believe you best option is to speak with an attorney on how to structure the lease to protect you the most.  

@Vasudev Kirs

All parties must fill out application and have credit and background check.  I use a credit range for deposits. For example, 600-619. First, Last and double deposit is required.  620-639 Double deposit,640-659 1 1/2 deposit, 660 and above single deposit.  This is for the highest level applicant.

Contact to reference, and request and review bank statements.

I had an applicant apply once that wanted to pay 1 year upfront.  He had the money from a house sale. But while reviewing his bank statements, he no longer was paying a mortgage and wouldn't be able to once the sale money was gone.  The spending habits left no money after bi weekly pay checks.  So after a year he would not have been able to pay.  He was not approved

Also make sure they get personnel property and liability insurance with you and them named as the insured.

Look at everything!

@Arina Alexiuc

3 New ground up builds in the last year.  After all expenses and loans over 2K a month in cash flow.  Land acquired and getting ready to start another is a few months.  Find a partner to fund the project, find a contractor, work out terms that are favorable for all parties, bring something special to the table and get higher rents because the property is nice an shiny. 

Of course that not everything to it, but its the meat and potatoes of the plan.

@Kristin Vegas

This is going to come across a rash, but as a Realtor/Real Estate Agent/Professional and I found out you were using 2 different agents in my neighborhood and possibly wasting my time.  I would fire you as a client, and make it know on the local boards of your practice.  Yes you will find an agent that will continue to write contracts for you, but you have to ask yourself and you really getting great service?  I like to have what I call the loyalty conversation with them after the first round of seeing properties.  I lay it out and be as transparent as possible on how I make my money and use my time for them.  I expect respect at the same level as I give.  I hate the term "Buyers and Liars" but this kinda practice makes it true.

Lastly, why not use the same agent to write both?  You too can be truthful.

@Jacob Caffee

Sure Jacob,  my number is on the signature line.  Shoot me a text and we can schedule a time.