All Forum Posts by: Kevin Harrison
Kevin Harrison has started 15 posts and replied 472 times.
Post: Should I sell it or continually rent it?
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
Personally I would keep a cash cow like that. If you want the money to re-invest then just re-finance the home to pull you equity out.
Post: Expert Advice Needed Mall Investors Making Offer
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
If it were me I would ask them for 500K plus first right of refusal for any property they bought for this project that they are going to sell. This would give you the option to buy near this new development in an area you know is going to increase in value. Also if they over bought and are going to sell off some of the lots they didn't need you have the chance to build in a great spot weather it be residential or commercial.
Post: Expert Advice Needed Mall Investors Making Offer
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
followed.
Post: Tenant Security Deposits Need to be in Savings Account???
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
Originally posted by @Andy D.:
http://apps.leg.wa.gov/rcw/default.aspx?cite=59.18...
@Kevin Harrison The (potential) problem with the not only having it in a bank/checking account but investing it is that cash on an account is FDIC insured (up to a certain sum). If you use that cash to invest it into something else then you convert that cash into a security, such as, for instance, a mutual fund, shares, bonds. It's "security" meant in the financial sense, not as in "safety".
"Money market" is, typically, also a fund and therefore a type of security (I shall keep it simple here). One therefore now bears the risk of the issuer: should that issuer go bust then the security is worthless (Lehman, anyone?) or at least worth less than what you invested in initially. And now you, as a landlord, have a problem because you, in essence, didn't properly fulfill your duties as trustee of these security deposits which you hold in trust for the tenant. That's why it's best to keep that money in cash on a checking account. Then again, FDIC also insures money market deposit accounts.
I recommend following the KISS principle. :-)
If you read my comment carefully you will see that I said I would advise AGINST putting it into a money market account or similar.
Post: Tenant Security Deposits Need to be in Savings Account???
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
I don't see any harm in keeping it in a high yield savings account, as always check with state regs to make sure this is legal. But you can definitely not "invest" this money in any way shape or form. As a matter of fact I would even advise aginst "money market" or similar accounts.
not a lawyer, CPA Etc
Post: witholding a security deposit-lack of cleaning and gardening
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
I would send them your list of materials and add in a line for "Labor", then I would also attach the written or e-mailed quote from merry maids so they know that you could have charged them double what they are being charged now. Some states wont allow you to charge for labor performed by the LL so check you state regs first.
Post: Seller did not turn over last month's rent at closing
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
First I would try to threaten the sellers with legal action, if that did not work go to small claims court. I would not retain a lawyer though for such a small amount of money as the lawyer is likely to cost more than the amount owed to you.
Post: Letting oil tank on empty when they move in?
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
Maybe you should start with the tank full and take a separate "OIL" deposit at move in to cover the cost of the oil if they don't refill it. As always, check with you state laws to makes sure this is legal in your state.
Starting with it full is an easy way to ensure that they know how much to fill it back up. Starting off with it empty is a PITA for them especially when they are in the middle of moving in.
Post: Funding 3rd property.
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
If you own 2 of the properties free and clear then why don't you off to use one of those to back the loan along with the property you are trying to buy? A smaller bank would most likely consider this.
Post: Just bought 1st Property Yaaaay
- Investor
- Woodbridge, VA
- Posts 476
- Votes 197
@Dave Garlick is correct, you should also look up "GroundFloor". I just read about them here on BP the other day. But after perusing their sight a little bit it looks like they fund much higher amounts than 36K, and as far as I can tell their terms are 6 or 12 months. Your interest rate varies depending on your experience and the strength of the deal.
EDIT: I have no affiliation with this company.