All Forum Posts by: Palmer Thomas

Brother I Appreciate your Feedback, and to be honest I'm okay with sarcasm because its actually pretty normal when the person does not know about a topic.

The problem you're having isn't that people here don't know about this topic.

The problem you're having is that the people here DO know about this topic, many probably know way more than you, and your pitch comes across as scammy.

0 Votes

Quote from @Patrick Eldridge:

Sometimes you need a break lol I’m sure once your 16 doors show positive income you’ll be able to do loans again.

They all show positive income. The problem is that I quit my job, so my rental income is basically my only income. That skews my DTI ratio in a way that banks don't like.

0 Votes

Quote from @Patrick Eldridge:

Congratulations! Have you noticed it picking up with more doors? We really started seeing it take off at 16.

It's actually dried up for me. I'm one of those sad schmucks who can't get a bank loan anymore due to high DTI ratio. I have some cash saved up. Maybe I can start again with some DSCR loans once rates come back down. Until then, I'm fine being a lazy bum for a while.

0 Votes

Awesome job, Patrick!!

I've been doing about the same thing over the last few years. I'd buy properties for cheap, many right off the MLS, that had sat without interest for a while because they needed some rehab work. I then did the rehab myself instead of going with a contractor. I'm up to 16 units now. The cash flow from these properties has been good, but the equity gains have been fantastic.

4 Votes

Quote from @Nathan Gesner:

This is not difficult. You should terminate his lease and move him out. In fact, you should have done it when it first happened.

Even if he is mentally ill, he doesn't have the right to disturb the neighbors and you have a responsibility to protect the right to quiet enjoyment for all your renters.

I don't think the loud guy is his tenant. The problem is that the loud guy is causing his tenant to want to leave.

4 Votes

Chicago, Illinois

Ramin,

I'm a dentist turned real estate investor. There are a couple of points you might want to consider.

I started buying houses and soon after quit dentistry, or at least quit being a full time dentist. This ended up being an impediment to investing as my personal income dropped and banks were much tighter with loans than they would have been if I still had a more dentist-like income. Since you have 6 years before your planned retirement (or semi-retirement) I would make sure to use those years of high income to acquire a lot of properties. Once you cut back, banks won't look on you very favorably.

Second, I would make sure it makes financial sense to purchase a practice rather than associating, especially since you want to quit full time dentistry in 6 years. The cost of purchasing, financing, and, most importantly, running a dental business can be draining. I would check the numbers. It wouldn't surprise me if you would be better off associating for those 6 years rather than buying.

1 Vote

San Diego, California

Quote from @Bud Gaffney:

@Chris John I’m way too busy getting wealthy off of RE to discuss politics. Take good care.

Then why did you just post about politics saying:

"anti landlord crap is always coming. It doesn’t matter if it’s R or D in office. Period."

It seems to me that you posted an obviously false statement then when someone called you out on it you suddenly became too busy to talk. It seems a bit disingenuous to me.

15 Votes

Would there be a clause used to indicate that the lender could call the loan at a certain point or, if preferred, could allow the loan to continue in the same manner?

0 Votes

Quote from @Peter Halliday:

@Palmer Thomas has this loan already been made? If not some things that can be done to make it attractive to note investors. First, is to have a third party service handle the underwriting like Call The Underwriter. Second, use a lawyer to draft a note and mortgage that's more standard for that state. It not being a land contract will make it a bit more sellable. Third, having it serviced by a servicing company, so accurate records are kept and transitions are smoother. I would bet it having a balloon may limit the sale. Some may not want it and some will. as for percentages to expect, it does depend on the current interest and length of seasoning and strength of underwriting and LTV. But if you seasoned it for a year it might sell for 95% or more.

Excellent info.

We are using a lawyer to do the note and mortgage. I hadn't thought about using a service company, at least not for this benefit. I'll run it by him.

Thanks.

0 Votes

Quote from @Nathan Grabau:

I would not make any promises and shorten the balloon if he thinks he will want his money sooner. Obviously there is a risk reward that both of you are taking, and for him, with the length of the balloon, the primary piece has to be that he should want to lock in the higher rate you are giving him as rates continue to fall. You guys need to do your very best to feel comfortable with the terms you have both agreed to, and make sure there is no expectation of "can you do xyz for me because we are friends?"

Thanks for this. He is actually more interested in keeping the loan going after the balloon than in selling early. I was just wondering about selling early for my own curiosity. And even though I know the typical warning about friends and lending, I've actually been the bank on two of his mortgages so we both have a good idea about what we're getting into.

0 Votes

All Forum Posts by: Palmer Thomas

Palmer Thomas has started 7 posts and replied 52 times.

Post: Do I have people who likes Multifamily Investments?

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: How to do a rehab for 8-12k per door

Post: Tenant wants to leave because of noisy neighbor

Post: 37 year old married dentist trying to crest financial freedom

Post: More anti-landlord action coming?

Post: A friend is the loaner on my mortgage. Can he sell the mortgage if needed?

Post: A friend is the loaner on my mortgage. Can he sell the mortgage if needed?

Post: A friend is the loaner on my mortgage. Can he sell the mortgage if needed?