All Forum Posts by: David Friedman

Before there are any attempts to answer your questions, how likely are you to actually collect on any money you request? Are they wealthy? Do you know if they just inherited a large sum of money? If you can't answer those questions then keep their full deposit (With a list of items so they cannot try to come back for it) and let them break the lease early so you can fix it up and get better tenants. Also, you should fix everything including the holes so that you can charge the most rent to the next tenant. Chasing after a tenant with no money is the worst way to spend your time.

I used to collect it in cash or check. It was nice at first to physically hold what amounted from your accomplishments. Now, all of my tenants have to deposit it direct into my Wells Fargo Account. They have no excuse not to pay, because they can drop it off at the bank in person if they don't understand how to send it using their computer.

Also, BiggerPockets has a list of online services here:

https://www.biggerpockets.com/rei/pay-rent-online-payment-tools/

You can absolutely calculate rehab yourself.

Almost everything in a house can be calculated by using a dollar amount per square foot. You should think in terms of, "How much does this flooring cost per sq. ft. to install? How many square feet is this house?"

Same process with roofing, paint, etc.

You can find out these numbers by getting various quotes from contractors in your area and use the median price. So if 3 contractors want to charge you $300 per window to install, that's your baseline. You can look at a house with 10 windows and say, "This will be about $3,000 in windows."

You can use this method with just about anything.

I am looking to network with developers, contractors with commercial experience, and experienced land acquisition professionals in the Los Angeles, San Bernardino and Riverside County areas. We are going to start developing land that we bought across from an In-N-Out as our first development and I would love to hear your thoughts on how we can maximize our investment.

Also real estate agents / brokers who have worked with large retail or commercial tenants, let's talk. If you are currently working with tenants on finding their next location, I would like to discuss opportunities.

Thank you everyone! Good information for Travis. It's not all hopeless. Once you establish yourself with a commercial lender, they will start to give you better and better terms on lending. It's actually very important to choose a "Relationship" Commercial Bank that is willing to work with you, even on wonky deals. Sometimes the weird or distressed deals make the most money.

I think the option you proposed is a much better one for you.

But, let’s look at this reverse mortgage situation a little further. If you could keep those same terms And charge a reverse mortgage interest rate for the use of your $2000 a month, then it would really be worth it! There’s no reason why he/she should be receiving cash flow without him/her having to pay interest on the backend.

Usually, the notice of sale is recorded immediately after the lis pendens is recorded. If you marketed to lis pendens properties, you might be a little quicker than the next competitor sending our mailers for the NTS stage of foreclosure.

Hello Travis, if the apartment complex is more than 4 units and this is your first commercial property with no other commercial properties to collateralize the loan, then you will most likely need 20% down. Realistically, most commercial banks will actually want 25% to 30% down for someone buying commercial property for their first time.

This is almost like a reverse mortgage with your upside tied into the eventual acquisition and sale of the property in 20 years. You should view your risks from the standpoint of a bank. There is no guarantee that the real estate will be valued at 1.8 in 20 years, but it likely could be. What if the owner trashes the house and you have to invest $100,000 into it? Since you aren't a bank, can you afford to pay this guy $2,000 a month for 20 years? If you default once, does he regain possession of the house and you lose the 10+ years that you have paid him the $2,000 a month?

I drive a kia soul with 140,000 miles on it. I did buy it new in 2013 since not having issues with my car in the real estate business is much more important to me than saving $5,000.