All Forum Posts by: David O.

One checking and savings account per property. Since interest is usually based on some average balance (daily/weekly/whatever), I actually have everything go into the savings account, then move money into checking as needed to pay expenses (once or twice a month). Also, depending on your jurisdiction, you may need to have your security deposit in some other type of account, or at least separate from everything else - which might add a third account to the mix.

I guess it kind of depends on the property, it's location and condition, and your evaluation.

I was recently in a similar situation where the Seller asked for best and final from myself and another potential Buyer.

Awesome property, killer location, even better price, numbers worked (little bit of a red flag, but hey, give it a go and see what happens, right).

I went in with a cash offer at full asking price plus a dollar, and removed all contingencies and other asks other than the inspection. Offer got accepted. Ended up walking away from the deal based on the inspection.

So, that's one approach, but only if it makes sense based on your prior due diligence.

You probably won't find any landlords set up the way you would like that are willing to lease to you and your LLC in order for you to offer short term rentals. And, if they are set up the way you are proposing, it is most likely because they are already using their properties to do what you would like to do (using their properties).

You will most likely find that in most, if not all, of the leases that you look at you will be prohibited from subletting the property, Which is what you want to do. And, it would be grounds for lease termination and possible eviction. So, you might want to be very upfront with any potential landlord about your intent. Could save you a lot of headache later on.

Perhaps I am misunderstanding something here, but it there are tenants then there (most likely) is a lease, which must be honored by the Buyer upon transfer of the property from the Seller. So you would need to see them out to the end of their lease, or evict if they break any terms of the lease, But, my understanding is that you cannot evict just because you want to use the property for some other form of investment (in this case as a flip).

Again, maybe I am missing something, or misunderstanding the situation?

So, if I understand correctly, the Realtor that screened and placed the tenant for you tells you after the fact that they feel the new tenant is a lawsuit waiting to happen? I find it difficult to believe that there were no red flags during the process. What the heck.

You need to fire the Realtor and find someone else to do your screening and placement for you, or do it yourself.

That sucks. Is there no way to go to your local BOA branch, meet with the branch manager or loan officer, and get something done. Or, did you already try that and no go?

I have not heard of the fundthiswholesaler site, and not sure how legit it would be considered by a seller since (it looks like) you can pretty much put whatever info you want in there.

Lots of folks talk about how much easier/better it is to work with a local bank, which I do. This is a perfect example how that can be a benefit with more personal service. I know, too little, too late in this instance, but perhaps something to consider in the future.

@Account Closed No need to have any dollar amount in the proof of funds letter. Not need to say what you are willing to pay either. As long as you have enough funds in the bank to cover whatever your maximum offer will be, all the letter from the bank (on their letterhead, and signed by an officer of the bank) should say is that "your name" has sufficient funds available to purchase the property located at "property address". Nothing more, nothing less.

I do student housing as well. Good choice.

Background check the kids and the parents. The kids will not have much of a history, if any. The parents will.

Do not have the parents co-sign. That would effectively be adding them to the lease, and bestow upon them all of the privileges associated with that. You want to deal with the kids, not the parents, if there are issues.

Instead, have the parents sign a Guarantee. The parents are there to ensure that the rent, utilities, and other expenses get paid in full, and on time. Nothing more.

If I think of anything else, I will add to this later.

Enjoy :-)

The Midwest might be worth a look as well. A very much under appreciated part of the country a far as I'm concerned. Great quality of life with lots to do (sports, museums, restaurants, entertainment, etc.), nice people, relatively inexpensive, quality schools, and central so it is easy to get anywhere else in the country you might like to visit. I live in the Kansas City metro on the Kansas side of the State Line. Bonus - it's a pretty good place to invest in real estate as well.