All Forum Posts by: Neal Collins

@Mike Nuss Now if only grocery stores would stop leaving the area.

You’ll get different opinions on this but most people fail to factor in the Time Value of Money when opting for a shorter amortized term. Since you will most likely will not be holding the property over the entire 15 to 30 years, I would opt for higher cash flow with a fixed loan constant where I know that if I did hold onto the property long long term my mortgage payment would be in 2018 dollars, not 2038 dollars.

@Dustin Figenscher There’s not much work involved in getting direct deposits of cash every month into your bank account yielding 400% more interest than what the bank would give you for putting your cash in their bank. 

He may reconsider in the future once he gets comfortable receiving the income and you can try to negotiate an extension.

Refinancing them can be done. Shop for some lenders.

If you don’t have mls access then I’d start with Zillow, Redfin, loopnet, and realtor.com to search sold comps. Lots of info there to go off of.

@Dustin Figenscher I'd start by identifying the ones you are interested in, running individual comps, and then putting together an LOI. You'll have to play with the terms to see what works for you. Those are short term notes, which is funny he wants to get paid back so quickly. Nothing better than interest income while slowly paying back capital gains in bite sized chunks each year. Make sure you can get out of them by refinancing or selling when the time comes. I'd really start negotiating by offering fair prices but with lower interest rates and longer terms. As the seller negotiates worse terms then lower your purchase price accordingly.

@Amanda N. Analyze the deal property by property to see if initial numbers make sense. Setup a rolling closing that are property specific so that you can apply certain exit strategies on respective properties. Partner with someone that has the financing or balance sheet behind them to take it down.

you mitigate risk, you can’t eliminate it.

Vacancy is something most landlords tend to overlook. You’re doing good now with settting money aside. Turnovers are expensive and you really want to find tenants that are going to stay at least two years, and hopefully more.

isn’t cash flowing properties in Southern California an oxymoron?

@Ginny Shaw Check your lease but generally state laws do not let tenants cart blanche intimidate, threaten, or harass people, especially your other tenants. Where’s the quiet and peaceful enjoyment in that? Serve a 24-hour notice to vacate and get them out of there.

One of the crazier threads I’ve read in awhile. I thought having to throw squatters out of a house we were moving tenants into the other day was enough landlord fun. Not you guys...blood so bad a nurse won’t go back in the house, ex’s sleeping in brain splatter, murders with execution style bags over heads. Wow. 

My dad actually got out of residential investing when he had to check on a house and found his tenants had skipped town and the hot water heater had fallen through the second story attic. A couple weeks later in another house of his the tenants loaded their kids in the car, turned it on in the garage, and committed suicide.