All Forum Posts by: Kevin Yeats

One "curve ball" (baseball reference courtesy of the World Series which starts tonight) in this calculation is: Do any of these loans have an adjustable interest rate?  If yes AND you think interest rates will rise substantially, it may make sense to target payments toward that loan.

My $0.02

I certainly would NOT consider these contractors for your "massive" job unless and until they corrected this project to your satisfaction (doubtful since you paid them already) .... even if they have to work overnight to complete the job the way that it should have been done in the first place.

If they won't correct the problem, find other contractors.

As mentioned, word of mouth and social media are your friends in this situation.

Good Luck

I have ZERO desire to get dragged into another debate on stocks versus real estate.

Each asset class is ***different***.  With real estate, the investor has a lot of control via decision making.  With stocks (and other financial assets) the investor has a lot more liquidity.

The trouble with a lot of this discussion is that many comments are based on which asset class gives "the highest return" while ignoring other factors (volatility and liquidity and ability to leverage being just three).  The largest number (on a spreadsheet) ***wins***.  Except the real world is never found on a spread sheet.  Real world investments have to look forward basically ignoring past track records.

If anyone wants to compare stocks and real estate then put them on an equal basis.  Require real estate investment to have the same reporting requirements (quarterly income statements etc and adverse event notification) as stocks do.  Trade the real estate investments daily (even though stocks trade in thousands or millions of units EVERY MINUTE)  By trading, the RE investor must sell the investment (in part or whole) and no longer have any claim on that SHARE of the investment .... and then be able to buy it back.  I guess that does not work so well when a sale (purchase) requires meeting at a closing table with a title company and others.  Or dig into a large number or private companies and their financials .... but then they would not be private.

Bottom line: each investment is different.

The best offer that I have seen lately is a 30 year loan with 30 year amortization with 8 years fixed. Rates in the 8s depending on credit score and other terms. Max 75% LTV so you could pull some equity out if desired.

Sandra, 

First sorry for this drama in your business life.  I hope, in addition to the tidbits of wisdom from others in this thread, that you take a few moments to review everything involved in the rental transaction starting with how you found these tenants (or they found you) and think about what red flags went up, when and what you should have done to avoid the drama.

Perhaps better screening could have screened them out .... perhaps.

I like Eric Drenckhahn's blog .... No Nonsense Landlord and the tips that he gives (from lots of experience) on screening tenants.

Although rare, companies offer insurance for such circumstances known as Disability Income Insurance.  As Health Care professionals who probably see lots of people who cannot work for extended periods of time due to illness or injury, these tenant probably understand the need.  That does not mean that they acted and had a policy in place ahead of that need.

I'm really surprised that a couple of professionals renting a house with a monthly rent of $2,000 don't have more financial resources accumulated.  I suspect there is more to this story than just bad luck hitting the tenants.

Best wishes

Joel, I have a source of equity for deals like this.

We won't know if they have interest in your specific deal until we run it past them.

Interested?  Send an email to me.

I would keep thinking.

First, who would be responsible for the upkeep of the grill?  Who would supply the propane?

Worse ... if something happens and the grill explodes or a tenant gets burned while using your grill, who will pay for the damages and hospital bills?

I'd pass on the grill.

"Quitting smoking is easy.  I've done it thousands of times." - Mark Twain

Franklin, write the business plan on a 3x5 card, post it on the refrigerator door (or bathroom mirror).  Refer to it at least weekly if not daily (when you shave?)

THEN, get out and take action.

as Jerry noted, your plan will change frequently.  Once you have taken some action, decided on what part of real estate you will conquer, spoke with lots of experienced people and read lots of posts here on BP, then compose a more detailed plan.

Good Luck

Possible .... just like it is possible to win a $300,000,000 lottery.

First, you would have to cross off the title of Licensed Insurance agent ... and probably drop the techie too.  In other words FOCUS.

Even with that focus you will learn quickly that concentrating your efforts in one type of property is more profitable than dabbling in several different types of properties.

Good Luck and let us know