All Forum Posts by: Luciano A.

@Erich Oertel

I agree with @Nathan Gesner depends on the risk of the tenant. We normally get 1st and security deposit equal to one month's rent. But if they have some credit issues or a new job we might bump the security deposit to 1.5x

However, this can get very costly when you factor in CA rent prices. One way to attract a good qualified tenant is by offering a surety bond type of program. Many new companies providing this service. Instead of a security deposit, they pay a small monthly fee to the company and the company guarantees at the time of moveout for any damages. I think Rhino is a player in this field but you can Google to find info. 

I am curious if anyone else has used such a program. We are looking into it and want to offer but most likely on our higher-priced rentals to make it more affordable for prospects that qualify. 

Best of luck

@Ravi S.

I agree with @Patricia Steiner. I would file the claim and take the judgement but depending on how much it is can go after him or help any future landlord that they might try to rent from. If the landlord is on top of things and runs background will see the judgement thus making it hard for them to lease. I had a tenant send me a check years after they moved out and left half of their belongings behind because we took them to court. Funny how someone will settle up when they want something new but cant get it because their past catches up to them.

Best of luck 

@Marita Jojo

I am curious what they mean by need more time. If they were supposed to move on 6/15 but need until 6/20 to move in then I would just prorate the rent. This way you aren't having to go back to the market and lose more time and not have someone in until 7/1. 

In the meanwhile, if I were you I would put listing back up while I wait to hear from this prospect on when they will move in. Each day is a lost opportunity.  

We normally don't pull our for lease ads until we have secured a resident with a signed lease and collected the necessary deposits. This way we are not losing time and can move to the next prospect if the first doesn't move fast enough.

We tell all of our prospects if they like the unit they need to move fast because we don't hold a unit unless we have all the needed documents.

Best of luck 

@Herbert Cuthbertson

Congrats on taking the first step to buying your first investment property. You can google and get a simple Real Estate purchase contract. Basically, the HML wants to see what you are buying and the price. The title company will require a contract as well when you open title.

If you think you will be doing more of these off-market deals without an agent then I think BP still sells contracts on here for like $99 that is state-specific. If you were buying from a stranger I would suggest getting a well-drafted contract but with a neighbor/friend you would be okay using generic.

Best of luck 

@Michael Ferrari

Congrats on paying off these two properties. SO when you first bought these two did you get a loan under the LLC or transferred into an LLC after you did a conventional loan. Nonetheless, you have options. You might be able to go to a local bank and ask them what their terms and rates would be to do a line of credit using the properties as collateral. Another option would be to put properties into your name with a quit claim deed and go to a mortgage banker and do cashout refi using a 30-year fix rate versus a Commerical doing a 20-year amortization and a higher interest rate.

Commercial amortization is based on 20 years, but sometimes you can find 25yrs but with a higher rate. But the catch is you will have usually a 5-year balloon. But based on how you are going I wouldn't be surprised you get them paid off again before the balloon comes due. Lol

Best of luck 

@Andrew Starkey

I bet before you bought the LSU condo you had some fear but you went ahead and became a landlord. I would say the fear is real and great to have. When I was starting out I would buy a property only if I could afford to carry the note while it was empty. If I could then I would buy. 

What I would do is find a good broker, who understands investors. If you find a property that you like, can carry it while it is empty then I would ask the agent to run the comps to see how long homes in that area sit and how quick they rent out. To be honest, if you provide a nice property that shows pride of ownership it will rent fast. Just take your time. 

One thing I see newbies are doing right now that scares me. Don't buy in areas that are all investors. For example, don't buy a duplex in an area that is full of the same-looking duplexes. When you buy in such an area full of rentals thus you are competing against other investors and hoping they keep the property up and rent to qualified prospects. If one landlord gets impatient and drops his price it can lead to a chain reaction. Those who have owned for a long time will have a larger spread to play with. They can crush the new investor who paid 2x his price.

Best of Luck  

@Matt Cecil

Go onto LoopNet and search for properties in that same area of town. If you see the same broker's name on the listings then call them and ask what they think the going cap rate is. The good brokers know their market and can give you quick answers.

If you are going to buy this portfolio as a package using a local bank they will analyze all the properties individually then figure out what your DSR is to get you financing. 

Depending on what type of commercial property you are looking at sometimes the appraiser will look at the quality of the renter to come up with an evaluation. For example, a nation brand will have more stay power than a mom-pop one location. And the length of the lease on a commercial property plays a role in banking decisions.

Best of luck 

@William Kehler

Not sure if this will help. Call this guy and ask him if he can refer you to someone in the Dallas area. He did a couple of fireplaces for me with my new builds. Terrance 832-675-0098.

Otherwise, another thing you can do is go to Angie's list and search for brick guys as well as chimney guys and see if that gets you any contractors. 

Best of Luck

@Chris Taylor

Congrats on the new purchase. Not sure what city you are in but just google Housing Authority and your city name to get to their website. They should have a section for landlords. Fill out the form for the landlord and they can update it. You might have to send proof like a HUD statement or recorded deed to show you are the owner. Depending on when the tenant's lease is up you can send the tenant and Section 8 agency a notice of rent increase. Here in Houston, it is 60 days before the lease expires. They will check the local market and if they agree to the increase they will send a new contract.

Best of luck

@Dimple Gajra

If you arent in a hurry I would say wait till November as many predict a correction soon. In the meanwhile check with a mortgage broker on what you qualify for and see if you need to do anything to get yourself in a better position for better financing. Then just educate yourself in the different areas of town in each of those cities. Once you have targeted neighborhoods in site then just watch the market and if you find something you really like you can make a decision at that point versus jumping into this crazy market in fear that you might lose out.

Best of luck