All Forum Posts by: Kenny Dahill

As an owner, what options do I have regarding where my property manager tracks the rental revenues? I have an accountant so I'm curious if they are allowed to send all checks and invoices to them. As an owner, can I dictate they use my personal real estate bank account, my Venmo / PayPal, etc. Basically an account I own and control.

Looking for some info/suggestions from those who have experience as being a property manager but not necessarily at a property management firm.

What type of deal structure do you have with your broker? I.e. Monthly splits, E&O costs, who holds the contract with the owner, what do you cover vs them, caps, etc. Did you purposely find a broker that'd allow you or had a broker but asked for permission?

Are you mostly independent or do you have a team (separate from brokers team)?  If so, how does that work between you and the broker?

I'm supposed to close today on 2 townhouses, already 2 weeks late in closing.  There were some document issues with the family changing trusts a few years back.

Anyways, long story short the current owners had to evict both set of tenants.  My contract to them was contingent on it being vacant, because I intend to remodel.  Due to this the third unit doesn't close for another few weeks since they had to give them their 1-month notice.  Prior to my offer the owners were already going to evict the tenants and were actually in the process.

Today I showed up to one of the properties and there's a legal document summoning the owners to court.  I'm asking my escrow agent to hold off on closing until I've received more info from the owners. Am I indemnified from previous evicted tenants?  I don't know how they handled the eviction, just know they both were several months behind.  Is there any worry to close; should I hold off or is it safe to close?

Tony, Curious if you were able to resolve this issue? I'm having a very similar issue and was hoping you mind be able to provide lessons you've learned. Greatly appreciated!

Right now it's Tempe. Granted I only have 2 rentals and they're both in Tempe. Just south of the 60 In the Kiwanis area. 

Ryan

There is also a Tempe renters tax of 1.4% I believe, you'll want to confirm the actual percentage. That is a good area for ASU tenants but be aware that they're more likely to be 1-2 year max tenants compared to the potential long term tenants. Each has their pros and cons. 

Best of luck!

Kenny

I have recently passed my Arizona real estate exam and am meeting with brokers in the Tempe / Chandler / Mesa / Scottsdale area.

Currently I am an estimator for a Medical Office Building developer in Chandler.  I own a couple of properties now and really enjoy renovating houses myself.  I initially got my license  to purchase investment properties for myself as well as help out friends/family who are buying but now want to big more active in attaining outside clients.  As of right now I do not intend to quit my job to be a full-time realtor, however I am open to the possibility in a few years once I have built a database if I have been successful.

Anybody on here a broker in the East Valley that would be willing to meet and discuss details?  I would like to find a good relationship that benefits both parties.

BP Community, I'm running into an issue and want some advice.

This summer I purchased a distressed property using hardmoney, 80% LTV. I spoke with a lender I've used in the past and explained our game plan and there was no concern except to have a promissory note and deed of trust. So we moved forward...

The house is now complete and I'm trying to refi the property but running into this issue: because I have owned the property for less than a year, I can only refi the initial loan and not 75% of the appraisal.  My lender suggests revising my promissory note to show the amount for the new loan amount.  This would result in the lender writing a bigger check to my hardmoney lender, who would then take his cut and pay me back the remainder since that would be my cash created - this is because my refi can't be a cash-out but this is a way around it.

My concern is the hardmoney lender would be a high probability for audits, but after talking with a CPA I was informed you can gift $14K without being taxed.  The hardmoney lender suggests that we re-record the Deed of Trust showing the new amount, but this will cost more money to do so.  Can we get by without having to re-record the Deed?

Has anybody had this issue before trying to refi an appreciated property within a year?  What solution did you end up doing?  If I were to refi with a private portfolio lender would this be an issue at all?  My goal was to take out some of my initial capital.

Thanks for your advice/time!

Hey guys, for those of you who are still following my updates just wanted to provided a short one. 

I finished!  Property turned out beautiful.  I also came under budget by about $1K but went over schedule by a month.  My actual construction days were pretty accurate but I didn't include any personal days.  It took me 95 days and I missed 30-35...yikes.

I already got a lease signed, did an open house immediately and had a couple of applications.  They move in 12/5!

Now I'm having to work through my refi.  This is turning into a mess because I was informed since I've owned the property for less than a year I can only refi the initial loan amount, and not based on the appraisal.  Due to this I'm unable to pull out as much cash as I initially had hoped, but the silver lining is it lowers my mortgage! 

Rent is $1,400 and mortgage (taxes/ins. inc.) is approx. $975.

Thanks guys for the feedback!

I enjoy and challenge myself on this rehabs by doing as much as possible without hiring any contractors.  In reality I'm hoping to identify another young investor-type who would want to do this as side work to get started.  Obviously as more properties are acquired it would be beneficial to step back into a management role for construction, but I've got too much energy and eagerness to learn to do that.  I'm also fortunate in that I work in commercial construction as a Project Engineer on a large project ($750M) and can ask for favors from subs based solely on the contract amount.

I'll continue to bring up this topic with other real estate people and get their takes. For those who have JV, how did you structure out that deal?

Thanks again!