All Forum Posts by: Pat Lulewicz

The lending environment is constantly changing and there are a lot of lending products out there to choose from. How do you choose and navigate the right product? What do some of the terms like DSCR and LTC/LTV mean in terms of lending? Tim Harvilla from Casa Lending will help us understand definitions, lending terms, and product options to see how they can help serve you as an investor. Bring all your questions that you haven't had a chance to ask a lender before!

Also - please consider contributing to our Deal Deep Dive! We want to make this as interactive as possible. If you have any deal you're currently working on and would like to show them off (wholesale, flip, rental purchase, BRRRR, etc), please send your slides/PDF by Wednesday, October 15 by 8:00PM.

If you go month to month and even if they stop paying rent, it is very rare for them to voluntary leave just because their lease ended. If they dont pay and refuse to leave at "end of term", you'd still have to go through eviction like you would in year-long lease for non-payment. So that "pro" tends to be a fallacy.

Even if your lease states that it auto renewws to M2M, you can still give them an annual renewal before that renewal window is up, and your annual renewal will take precedent.

Yes - if you increase rent, give them notice and sign a renewal/amendment to the original lease. If you provide notice and they dont want to (or just dont) sign, the new rent is still effective assuming you gave the appropraite, timely notice.

Pro of month to month lease is flexibility in the rent you can charge both related to taking a premium for M2M option and market changes (less likely)

Have you every considered renegotiating your rates with her because those are ridiculously high across the board. 50% for a renewal is high-way robbery and should probably the first one to go. Mark-up should be 5%-10%.

Do you feel like you can't manage both PM and sourcing/manaing BRRR projects at the same time? Or do you feel like you'll miss a deal while PMing?

At $112k a year, have you considered finding a REALLY high performing individual to just be your asset manager? Even if they're 50% as effective as you, that's 40hrs/week managing your portfolio (based on your calc). And once they get good, you can have them manage the BRRRR process or perhaps do acquisitions? You could outsource their time to our landlords/PMs to do showings (if OH allows that of unlicensed leasing agents) to offset their cost. Have them be your personal assistant and get you lunch. Could get really creative here.

It seems like you might be misinterpreting the 2-year rule in your scenario. If you buy and live in a home (owner-occupied) for 2 of the last 5 years, you can sell the home tax-free. This tax exemption does not apply to investment property - flips or rentals. In your example of doing a rehab and placing a tenant in the home, if you sell at ANY point (unless you occupied it for at least 2 years), you will owe tax on any gains as well as depreciation recapture for the depreciation taken while it was a rental property with the tenant in it.

A1: Lowering the score won't result in better tenants applying. People apply regardless because Zillow gives them a 1-time fee for an application ($35 for the first month I believe) so they dont lose anything by just applying everywhere.

A2: Co-applicant/Guarantor can be a great option. I find they rarely have someone with a strong enough score, but its worth the optionality.

A3: this may be an issue with the builder so I'd strongly recommend getting their permission first. It also puts you in a liability situation if they dont finish and close on time...give yourself some buffer on timing.

Vacancy and demand - the winter isn't necessarily a bad time anymore; demand for high quality products is a year-round endeavor in Raleigh these days.

I find DSCR loans easier than conventional financing from getting approvals - your W2 and DTI doesn't matter...its DSCR, credit score, and appraisal. Its all I use to make the process seamless.

Attorneys can be expensive and hard to get a hold of. Everyone has legal questions about real estate and real estate transactions. Come out to this month's Pints & Properties meet-up to hear from a panel of local attorneys answer some FAQs and get a chance to have a personal Q&A with them FOR FREE (tip our server, of course). We will touch on standard process in closing a purchase/sale transactions, complexity of certain transactions, horror stories these attorneys have encountered in transactions, and touch on the changing landscape of wholesaling and bill HB797. 

If you have any deal you're currently working on and would like to show them off (wholesale, flip, rental purchase, BRRRR, etc), please send your slides/PDF by Wednesday, August 17th by 8:00PM.

I have definitely heard similar sentiment and experienced it myself; I have sent you a PM.

Hey @Matt Jones are you referring to someone specifically performing the lease-up but you manage the rental/lease after move-in? If so, this is a very common service. We treat it with the same level of effort as if we're leasing with the intent to manage - set criteria, fast replies and scheduling/showing, thorough vetting, etc. 

If you want to be as hands-on as possible with the process, you could require every qualified application is run by you before signing a lease to protect yourself. Obviously this means you're doing work in review + your slow response could mean qualified applicants slip through the cracks, but on the flip side this also allows you to know exactly who YOU will be managing for the lease term.

You should absolutely be taking this to any media outlet that will hear it, but I fear many would view it as "greedy landlord doesn't get his way" which is unfortunate. There is rarely any sort of repercussion here on the gov't employees whose guaranteed salaries are paid by our taxes. I hate hearing that you had to go through this and I'm certain you aren't the only one.