All Forum Posts by: Jason Barnett

One of our site members, takleberry, is an entrepreneur that created a website that does property management for landlords with very few properties (less than 10). His site is www.RentingYourHome.com

Thank you for the warm welcome back. Yes, I plan on being more active again now that I'm no longer working 14 hour days trying to complete the transaction! The whole due diligence process was eye opening with the work that was done (or not done in some cases :lol: )

Hello everyone. Some of you new people may not recognize me since I have not been on the site as much in the past months. It has been quite an exciting time for me and the other people at my company. I realize that many people won't be interested in this topic (we didn't sell any real estate :D), but I thought some of you might have wondered where I've been. The acquisition of my company has completed as of Friday and the public announcement was made earlier this morning.

http://polycom.com/investor_relations/1,1434,pw-221-17259,FF.html

Thank you, I haven't talked with the BOA people. Do you know what kinds of terms to expect? I would imagine it is prime plus X...

YIKES!!!

Do yourself a favor... just walk away from this "deal". You're going to regret it if you try renting to this guy.

I don't know why Harvard is the gold standard instead of IUB... oh, never mind. :oops:

r2d246, you are a great real-world example of creating value. The prior landlord didn't maintain the property... you made some improvements and now your net income is up. Nice!

It's even easier than that. If you look at the property analysis report you just need to find the "debt coverage ratio". If it's greater than 1 then you will have enough money for debt payments. Let the tool do the heavy lifting for you... how simple is that?!? :D

What kind of rent can the owner pay for the house? If he isn't willing to pay enough rent to pay for your PITI then you shouldn't bother becoming his landlord.

But that's just the thing... banks cannot go after home owners in some states. That's called a "deficiency judgment". So it is always in their best interests to increase the sale price of a property. When they bid at auction they aren't trying to win... they don't want to win... but they will win if they aren't offered a dollar amount that will satisfy the loss mit department.

Well here are a few things to consider...

1. Banks don't necessarily have to send someone in order to bid. Some banks will just send the "max bid" to the court and have a clerk bid up to the min amount they will accept at auction.

2. Yes, lenders want to minimize their losses.

3. In some cases there will be more than one lien on the property. The banks might have to cover for some of these other liens (I'm mainly thinking of tax liens here)

4. There might be more than one lender for the property. In this situation the lender with first lien position will get his money first, so the second (or third!?!) creditor might bid up the price a little higher to minimize their loss.

5. Some banks do not service their own loans... some banks pool mortgage interests... or sell off parts of their loan portfolio... regardless of the situation, there is SOMEONE that is a fiduciary for the property. This person will be responsible for recovering as much cash as possible for the collateral.

6. Some loans are guaranteed against default by pseudo-governmental agencies. If a bank is unable to sell the property to cover their loss then the agency will reimburse the bank and then try to sell the property themselves.

Originally posted by "Resmith":

When you say cash flow positive, what exactly do you mean? Any positive cash flow or do you shoot for a certain amount expecting some type of expense to come up?

I'm saying that at a minimum I want to see that I will be cash flow positive after I pay out PITI, maintenance expenses, utlities that I pay, and a reserve for repairs based on my experience. If you don't have experience with repairs then just ask someone at the REIA what to expect.