All Forum Posts by: Jeff Rabinowitz

The purchase agreement is between the seller and you.  The assignment contract is between you and the person to whom you are assigning the contract.  Your buyer does not have to sign the purchase agreement.  (Of course, the caveat that I am not a lawyer, am not providing legal advice, and that I recommend you have a local lawyer review the specifics of your contracts applies here.)

It would be worth having a conversation with Chris Moshier at Simplified Insurance,  (248) 996-8904.  I suspect he will either be able to get you a good quote or point you in the right direction.

I prefer to partner with people whom I trust and whose company I enjoy.  That said, I have some partners with whom I share many personal details and some with whom I don't.  I know a lot of personal details about some partners and little about others.  I have not found that to affect the deals.

If all you need a partner for is a financial contribution to the project that can be easily achieved by borrowing money from them.  A debt partner will have no ownership interest in the property as long as YOU perform according to the terms of the note. 

It is a quit claim deed. The error generated 2 responses and at least 2 views.  

Paying extra principal each month will retire the note faster but do not assume the lender will apply your extra payment the way you want them to.  Some lenders will apply your extra payment to the interest if you do not provide any instructions.  This will not have close to the impact of paying down the principal.  Include a note every time you make an extra payment instructing the lender to apply the extra payment to the principal.  Check to make sure your instructions were followed.

I deploy my HELOC as often as possible. The interest rate is much lower than any other financing available. Mine allows unlimited draws without charges and only requires monthly interest payments. I keep the account for my rental properties at the same bank and the accounts have online access. Making the payments is quite simple. When I deposit a rent payment I simply transfer it online to the HELOC account. That counts as a payment. If I need the funds again (or have another opportunity to deploy them) I simply make another draw on the HELOC. I sweep funds from my other accounts to the HELOC a couple times weekly. I never have to remember when a payment is really due, minimize interest charges, and usually have the ability to write fairly large checks at very low rates.

My rentals are not in LLCs.  This strategy would not be advisable if your properties are in LLCs.

In the case I was involved in, my borrower was sued for a harm to the plaintiff which occurred before I had done business with the borrower and which had no relationship to the properties I funded. I was not on title but I did record the mortgage on the property and this is a public filing. The plaintiff added my IRA to the suit as a conspirator. (He was looking to seize the properties I had liens on and to destroy my relationship with the borrower.) The plaintiff knew I had no culpability within weeks of the suit being initiated yet it took nearly 3 years of legal fees to free 3 of the properties from the suit. The 4th property still has a cloud on title even though the plaintiff withdrew from the suit 6 months ago.

@Tyler Haskell, metro Detroit is extremely diverse.  I know people who invest in Eastpointe and who invest in Redford but no one who would want to invest in both.  These areas simply have different tenant and/or buyer profiles and require different strategies and management styles.  Neither area appeals to me.  Not because I think they can't be profitable (as I said, I know people who profit in both areas) but because I know other areas better. they are closer to where I live, better suit my management style or offer greater profit potential.

In regards to inventory--be careful.  There is plenty of inventory in less desirable areas.  The inventory is drying up in more desirable areas and/or prices have risen beyond what many prudent investors are willing to pay. 

That is quite an achievement.  Congratulations.

@Colby Litzenberger,  I would be happy to borrow at those rates but I wouldn't write a loan at those rates.  The best way I know to find out what would be acceptable to your lender is to ask.