All Forum Posts by: Mark Douglas

@Thomas S.  Would you recommend having the tenant file the claim, or should I file it under my owners' policy?

@Douglass Benson  Great post.  I hope to look back in 10 years with the same satisfaction as you do.  Thanks for sharing.

I'm going to give a tenant a 30+ day notice to vacate by September 30. Last night, they had a kitchen fire, causing minor damages. I'm wondering if I should have them file an insurance claim, or just keep their deposit when they leave next month? Or both??

@Brett Weaver  nice to meet you!  I work in Nashville, but I'm in Lawrenceburg about once a month.  Best of luck to you as you navigate the best path for your business!

@Jason Hirko  Thanks Jason, I'll keep this in mind.   To yours and @Ben Zimmerman's point, I could be perceived as pretty risky, given my little experience.   @Brian Corbett  Thanks for the advice!  I've been speaking with some owners about seller financing, so far nothing yet, but hopefully something will come through.  I don't mind growing slowly, but I'd like to keep some momentum before I become complacent.   Thanks everyone. 

@Rod Desinord  I've been driving neighborhoods, responding to "for rent" signs.  Of course, asking the owner if they're interested in selling.  (Or saving their address and just direct-mailing them)

Also, with the REOs, I'm sure you're already aware, but it never hurts to make an offer far less than the asking price.  The banks just want something on it.  They won't give them away, but they may very likely take a significant discount to get it off their books.

@Scott Trench  Thanks for that.  I think it helps me to surround myself with other people trying to accomplish similar goals.  Have to keep myself moving :)  Hopefully I'll settle into a pattern and it will become more second-nature, instead of super intentional. 

@Jason Hirko @Charlie Fitzgerald So for those who do a partnership or JV, and one partner is just the equity guy providing the down payment funds, and maybe the other guy brings non-monetary resources (he can do the rehab, or he can manage the finances, etc) and other value to the table... in this case, the guy that just brings "other added value" doesn't have any skin in the game either, if the deal goes south, right? Unless I'm missing something here. Not trying to argue, you guys know a lot more than me! I have legitimate questions about this though..

Everyone keeps saying "skin in the game", but there are lots of cases on BP where I hear experienced (and even inexperienced) people putting together projects without draining their bank account.. Is that the answer?  Do a good number of small deals on my own before I can put together projects with other investors' capital?  I guess I'm saying, just because I don't have $80k laying around, doesn't mean I'm not serious about this.  Please let me know if you had $80k when you were 23...I think the fact that I'm on here in the first place, and just closed on my first duplex in March, and am fixing up one side, and already renting the other side, shows that I'm fairly serious about this.  I may not have a 100 unit complex, but I'm starting with something.  If I had the money to put down, I'd just go conventional and post a success story, instead of this post :)

Should I stop looking at projects larger than what I can handle on my own?? That would limit me to pretty much 4 units and under.  That seems counter-intuitive to what I've been getting from the blogs, forums, and podcasts.  I'm hearing that you can look to others to make up parts that you lack.  (If you don't have good credit, get a partner to sign the loan, and share the profits, etc.)  

Just seems that there are two different camps.  Camp 1: Skin in the game - you need to use a significant portion of your money to prove that you're serious.  Camp 2: Creative financing/collaborating, which people want a track record to verify your abilities...  Is there a happy medium? 

I'm hitting a brick wall everywhere I turn, and no one seems to remember what it was like when they were first starting out...  Not you guys personally, of course.  Various lenders that I talk to ... I was asking one about a line of credit, and he basically said I have to show $300k in assets, to qualify for a $30k line of credit.  (Why would I need to borrow $30k if I have $300k in assets..?)

I really do appreciate your advice. Please know I'm only venting, nothing at all personal. Just slow making progress when you see how powerful REI is.

A hard money lender wouldn't fund the whole thing right?   @Charlie Fitzgerald 

@Charlie Fitzgerald   So how do people do this then???  Just save up for the down payment?  It's around $80k