All Forum Posts by: Jake Kucheck

Of course you're making the loan hoping the borrower defaults. If you're only making loans that you NEED the borrower to perform on, its time for a new business model.

Since I'm feeling feisty this Friday morning... I'll go ahead and play devil's advocate.

You're saying "the numbers make sense", but I would argue completely the opposite is the case in all three of the scenarios you list.

Case #1: Lender is afraid to get out their car without a firearm. Solution- lower purchase price enough to make lender comfortable, or hire a qualified site inspector with more cojones.

Case #2: Rural property.
Solution- Decrease LTV with less attractive terms, meaning worst case scenario you make a lot of money on the debt and if you have to foreclose, you can sell it a price your borrower couldn't.

Case #3: Poorly capitalized borrower
Solution- see Case #2

What you meant is that the numbers don't make sense. There is always someone willing to lend money on a deal. It just has to actually be a deal.

Quick Q:

If I have health insurance now, as an individual (not through my company), does that mean I lose it? Does it mean my premiums will go up? If so... how much?

Not all markets are rental markets. My war zone acquisitions are sometimes 5%+ of purchase price, but there is a unique skill set that comes with managing those types of properties. The local rentals in the IE and Coachella Valley are more like 1%, sometimes better, sometimes worse. It is a sliding scale of rental yield and tenant quality (the two are typically inversely correlated).

As for Will Barnard's market that has 3/2/1500s selling for $300K, that's similar to OC, except the ones in south OC are more like $450-500K. I don't know anybody that thinks those are good rentals for rentals sake. I do know a lot of people that think they are good ways to store cash, outpace inflation with appreciation, utilize a number of tax efficiency strategies to improve their overall financial picture, and make a little mailbox money of the rent in the process.

Thanks for the replies. Basically, he is looking for someone to be the "eyes and ears" for deals and run down DD info while he pulls the trigger. There is also a PM component. These might be separate people, or they might be the same person. These are for buy and holds, not flips.

I'll have him follow up with Justin and Nick's suggestions.

Very simple- if you are a broker in this market I have a colleague working on his licensing there and is interested in working with an investor focused broker. There is CA money behind him. Contact me or reply if interested.

Yikes... sorry about that. I meant that the OP might be able to glean some insight from picking your brain, not that I was suggesting he get the docs from you and turn around and start using them. I guess even that over-steps the bounds of what you wanted. My apologies for the mix-up.

Kevin Breazeale- you might check in with K. Marie Poe on this. She provided me with a contract that helped me successfully wholesale a property very quickly. I had to adapt it to my situation of course, but it was a very useful template.

Agree with Mike M... way too much in the way of feelings/emotions. You should never "like" your tenant. I would suggest you hire a professional property manager... even if they don't do a great job, they probably will have done a better one than what you have. Even if they don't, you'll have a layer of protection when trouble with "mom" arises.

Bryan R. I've never heard anyone say that, and neither has Google.