All Forum Posts by: Karl B.

When I bought my single family house in L.A. I had THREE Dish Network dishes on my roof (and an old, five-foot rusted-out TV antenna). 

I would never let a dish be installed on one of my rental properties - partially because I detest Dish Network and partially because it's 2016 and online streaming is both cheaper and better. 

The phone jack isn't an issue as long as it was installed correctly. I use Magic Jack, myself, as I don't like talking on a cell phone while at home.

To the OP - It's your home and your choice - don't do something you don't want to do just because the tenant pushes you to do it. I know it's already been done but there's always next time. 

When I moved back to Los Angeles in 2011 me and two dudes rented a three-bedroom in Fox Hills. There was a stove but the owner (she went by the name 'Miss Rentee' as her sister was a famous singer in the 1960s or 1970s and the two sisters invested in real estate and crushed it) told us in all of her properties the tenant had to get their own fridge. She claimed it was due to sanitary issues. And this woman and her sister owned large apartment buildings. The rent was quite fair ($1900 for a three-bedroom in a nice area near the park) and although it was an inconvenience we had no problem in doing so as the rent and area were too good to pass up. 

Hi, Diane. With an investment property you're likely going to need to do 25% down.

I'm working with a credit union and 25% down is the minimum for a Fannie/Freddie loan. I told them it's a secondary property and they told me since it's a multi-family it's got to be considered an investment property even if I was to life there seasonally. 

All this despite having a high credit score - it's not as high as yours but it's close. 

The best way I've heard this explained is your loan must fit inside a box. And as of now low interest loans are typically 25% down or higher. I chose a 10-year loan to keep the loan % as low as possible and am trying to get the closing fees down because they're absolutely ridiculous (they're computer-generated so they're likely lower in reality but some of the fees are bogus and some is work my RE attorney can provide for cheaper).

It sounds like Colony Financial and the credit union I am working with are following the same rules - if you get the 25% down you likely won't have a problem getting a low-interest loan. 

If the deal is awesome then I suggest borrowing the extra approximately $5,000 so you can get the 25% down fixed-rate loan. 

You could always buy the windows from them if they have the lowest price on windows (and they're well-made) and if the installation fee seems too high you could get bids for installation on sites like Thumbtack.com or through Angie's List.

I looooove Thumbtack.com as I've used it to get bids on tree-trimming as well as plumbing. The bid ranges can be vast and I've saved a lot of money by using it. 

Angie's List is great as well - I've hired concrete guys and a door installer through them. 

Leave no stone unturned and you can save money. Just do the research to make certain the product and/or the tradesman has a good reputation. 

I offer 2-3 day grace the first time if the first time is months into the lease. I do a one-time fee and don't compound it. I file papers if it's much longer than that. 

One idea Brandon stated that I like is to not let the tenant know you're the owner. Make it seem like you're the PM even if you are, in fact, the owner. That way, if they're late on rent, tell them sorry, the owner is a stickler and I can't waive the fee! Also, you can tell them you run rent payments using a computer program and once rents are late the late fee can't be reversed. I have used that line once (my most recent late payment) three or so months ago and the tenant has been paying on time since that fee. 

Don't let being a nice person cause you to be taken advantage of. Things happen and you can forgive if you feel the need but most of the time, enforce the rules and the tenant will pay on time since they would much rather not hand over late fees. 

Thank you, Michael. I appreciate it!

Hello! I live in Los Angeles (for now) and own investment properties on the East Coast (and am always buying). I've been on BP for roughly a year and have attended webinars and read lots of blog posts and am just seeing this introduction box now and so I'm filling it out! My latest buy is a 4-unit in Pennsylvania. I got a great deal on it because I didn't use an agent and negotiated directly with the seller. The unit had been for sale on the MLS and when it went off-market I got the seller's information from City Hall and negotiated with him. Like Brandon says, do what most others won't to find a deal (paraphrasing that but he said something of that nature).

I laughed at the joke and laughed again when I saw that some helpful folks missed the joke. If you gather more jokes you can release 'The Big  Book of Real Estate Investing Jokes' by Ronan.   :-)

 Awesome! Thank you so much, Bob. I appreciate it. I'll read the sources you supplied and will PM you once I'm done. Again, thank you for both your kindness and expertise!

Great post. Do you (or any of the other posters) recommend any books on notes? I have a working knowledge of them but want to learn much more about them.  Many thanks!