All Forum Posts by: Josh Caldwell

6 months on a first deal will be hard to do. I would look at either a mortgage broker or a really small local bank. In Pittsburgh, First National will do it if you go through our local business bank guy.

The first question that I have is who are the tenants?  Are they the tenants of the former owner, or are they the former owners?  The second question is how likely are they to pay?  If they are the former owners and they didn't pay the bank, they aren't likely to pay me.  If they are former tenants, then I want their credit scores and proof of previous payment or they are going to be leaving.

Are you coming Saturday?

If your marketing sucks, your business will suffer. The topic was the sexiest thing in real estate, and the most important, marketing.We had a great meeting Tuesday night with Jason Roberts.

This Saturday, Jason and his partner Rachel will go much deeper into detail of how you need to set up your marketing to copy his success.  Jason laid out a blueprint for all of us to follow.Jason told us his whole story. how he went from bankrupt in 2008 to making millions in 2018.He laid out the basics of how his marketing turned his life around, and allowed him to do more than 300 profitable real estate deals, completely changing his life.

So my question is, are you coming?

Pittsburgh PA 15237 (Ross twp)

3579 Masonic Way

PS - we will be there from 9 am to 3 PM - food is included

Josh

To your success

Go to http://pittsburghreia.com/ now to reserve your seat.You can register day of the event but you might be standing or sitting on the floor.We won’t turn anyone away.

To pre register for the event follow this link, hurry up because seating is limited to the first 160 people to register (sorry that is all that we can fit in the room)

@Jared Carpenter it can be done either way. The advantage of having the investors lined up first is that the deal falls together.  You don't need to pitch phantom deals, you just need to describe you track record, explain how your prior investors have made out, and tell them how you will structure a deal.  Then when you find it, you send them real numbers and they can pass or play. 

@Susanne McCallack  Let me make this very simple for you.  If the property is under contract with an agency.  The only want you touch that property without getting sued and losing for what will be called Tortious Interference with a contract is if you found the seller on your own, through your (provable in court) marketing.  Even in that instance, you need to make sure that they contract is non-exclusive and has language to confirm this.  If the property is under contract and you refuse to pay an agent, you can legally take a run at it after it expires.  I track expired listings often. You can also sign a contract with the seller for a date after that realtor contract expires and wait, or you can ask the seller to cancel the agent contract.  Tread carefully, and know your state law before you jump off that bridge.  

I have had tenants do that, and I was furious too.  I did a quick Google search and confirmed that murdering the tenants was still illegal. 

The answer to your question is two parts.  First what did you lease say?  Are tenants allowed to paint the house without your explicit permission?  My tenants are not allowed to alter anything without my written authorization.  

The second part is your state law. Some states suck for landlords, other states are great for us.  I live in Pennsylvania where we are pretty good.  In my state, I could keep their security deposit with no problem, I could probably also win a law suit against them but collecting is another matter.  If you are in a place like NY or CA, you might just be screwed. 

@Ali Ahmed Ok your guy sounds pretty good. From my limited exposure to the Dallas market, what I hear is that deals are hard to find. I wonder why on Earth he is leaving his home market for a tougher more competitive market.  That doesn't make a lot of sense to me. There are always deal to wholesale no matter where you live, the problem is that to get those deals you need a combination of a good network and marketing.  IF your guy already has that in TN, why would he pack up and relocate his efforts? That just doesn't make sense. 

Not remotely a Penn Hills fan, I wont keep a property there.  Pittsburgh is a town of over 130 distinct neighborhoods and sub neighborhoods beyond that.  I would start by looking at crime data to eliminate or confirm potential targets. After that, I would look at school rankings. I would need know more about your target neighborhood and goals to even begin to list potential areas for you to look at.

NNN is an interesting topic. My group just brought in a guy who negotiates NNN for a living. The BIG takeaway is that all NNN are not created equal. It is a bit of a myth that NNN means that everything is taken care of by the tenant. BEFORE you get yourself into a mess, you need to review EVERY line of the NNN lease. Some leases exclude things like exterior paint, or damage from vandalism. You can very quickly find yourself actively managing a construction project on what you thought was a NNN property.

Another consideration is what happens when that lease expires or the tenant doesn't renew? For example if you own a NNN on a Tacobell, what will you have to do to rent that property again? How long will it sit when you have a vacancy.

Another thing to consider, is who is the tenant.  Most of the time, it is not the big national franchise on the hook. It can be an individual with limited experience running that business.  If he fails you are back to looking at a long term vacancy. 

For my money, it is a lot easier and safer to be a private lender. You can always find an investor who will pay you more than the NNN lease anyway. All you have to do is ask.

NNN leases are for people who have too much money to intelligently invest. They need a parking place not necessarily an income.

I hope that helps

Josh 

I don't know anything about them, but if you describe the deal, I might be able to evaluate the deal for you.