All Forum Posts by: Kenneth Garrett

I totally understand.  You can get occupancy (temporary) for unit by unit, but its up to the discretion of the inspector.  As long as the common area (exits) are compliant and do not interfere with any safety issues, it seems to be a reasonable request.  I deal with a lot of inspectors since I teach code classes to the designers, engineers, inspectors, contractors etc.  If you need help message me at my inbox.

Good Luck. 

LoopNet.com is a website designed for commercial properties.  They have multi-family on the site.  Direct mail is good as well.  Using multiple methods of marketing to find properties is a continuous process.  For direct mail I use LIstsource.com it lets you pick and choose your parameters on contact list.  I like to use it for out of state owners of property with no mortgage or low balance on mortgage.

Eric,

I have been a building and zoning official for over 20 years.  If you get caught you will go through hell and it will cost you time and money.  I'm not sure why you just don't call for the inspection.   

Is this a situation where you have rehabbed the building and the city issued a building permit or are you referring to the rental registration.

You may get away with it but I don't think its worth the aggravation.

Go to Credit Nerds.  They are a credit repair company and only charge what they can get removed of your credit report.  They work with a lot investors trying to improve there credit score.  I know people who have increased there score 100 points within the first years or so.  Eric Counts does a great job helping people. It is definitely worth the money.  There is an upcharge to review your file but they prepare the letters that are sent to the credit bureaus.  It is very difficult to improve it on your own.  It will speed up the time to improve your score.

Eric,

Eric makes some very good points. I take a different perspective on rental units, I try to build equity in them by fixing them up nicer then the competition. This provides a couple of advantages; it drives up the ARV so when I refi I can reduce, if not eliminate my money invested in the project ( I typically use private funds) and I can get better quality tenants.

Good Luck.

I listen to a few podcast and I think the two that I get the best info from is EPIC Real Estate Investing out of California.  I've used some of the strategies and it definitely gives you a lot of nuts and bolts you can use.  He does try to sell his training but if you just take the info it is pretty good.  The refresh your wealth radio show is about legal and taxes.  Its a little corny some times, but I get a lot of good tax and legal tips.

On the book side, the Millionaire next door and of course Brandon Turners book on Rental Property Investing are both very good. 

Fred,

It sounds like your strategy is working on flips.  There is potential for great profits with this strategy.  Having the ability to perform the rehab work is a definite plus.  Check with your area to make sure if you need to be a licensed contractor to work on projects that are not owner occupied. 

Private lenders v. hard money are definitely very different distinct loan types. In simple terms hard money in general will loan up to 65% of the ARV. They also like to see a track record as well as decent credit. Interest payments are due each month and they typically will do an appraisal which could be someone from there office. Percent could be as high as 15% or so plus points sometimes 4 or so. Its expensive money and the terms vary widely. You can get 12% plus 2 -3 points by me but you need to have a real strong project, good credit and experience.

Private Funding is usually Self Directed Retirement Funds that are being invested.  Could be cash but more rare.  One big advantage is you can borrow 100% of the money purchase and rehab funds.  No credit check and the investors will want to know how you are protecting there funds.  Experience will also help.  No monthly interest payments.  Interest paid at closing of the end buyer.

You may need to partner with someone who has experience to start building your own criteria. 

Good Luck.           

Sebastian,

I have my tenants mail the rent payments to a specific address not my home address.  I created a business address where all my mail is sent.  You are correct if you take partial payments it does create an issue for eviction procedures.  You need to check with your state on there procedures.  Another resource you may want to check out is MrLandlord.com it is run by Jeffrey Taylor and has a ton of great information for landlords.  It is free to sign up for his emails/newsletter and you will gain a lot of good information.  He also recommends a couple of sites that collect rent checks on line for a small fee.  You can probably set the parameters for accepting payments.  

Good Luck.

I agree with Jack definitely have your attorney review the document. There are many structures you can create to protect yourself. First of all you should have a comfort level when you are partnering with other people. You could create a separate LLC for this project where you are in first lien position. You essentially are the bank and could foreclose if your partner failed to perform. I have also created Joint Venture Agreements in the past, Limited Partnership agreements, etc. You want to protect your interest. Make sure you check out your partner that he has a track record of projects. Due diligence is essential.

Good Luck.        

I always provide a three page "Opportunity Investment" for my investors. It describes the project what I plan to do to the Building(s) (Rehab) and all of the cost.  I give them information on the neighborhood, the community, rental market and revenue and expense report.  It is very detailed so it gives the impression, this is not my first time and I have done my own due diligence.  Most importantly how their funds are protected.  Even if I know them I still provide the three page "Opportunity Investment".  I invite them to look at the project so they can do there own due diligence.  I work with a few investors and I think it is important that they have a very high comfort level with you.  At the end of the day they are investing in you.   Also make sure you provide them status reports on the project, so they are well informed on how things are going.  If there is an issue with investors or for that matter in any business application it is a lack of communication.  Keep everyone in the loop.

Good Luck.