All Forum Posts by: Daria B.

I have been investing in notes since 2017 and it's been a pretty simple process. Several people in my area invest with a JV that manages the ins/outs and have had good results. We have had numerous discussions in our group about how to track income and what does that really mean.

Recently we had a note that was paid off so in essence it wasn't a sale - or was it? This is the first time a note was paid off by the borrower. 

We have had notes that truly were a sale and profited from what we originally funded to that of the sale and payments in-between that were what we gained as income.

I realize there are many levels to tracking and what is considered income (eg. capital gain, payments that are both principal and interest and is interest really only considered income where the principal is the capital investment). And then there is the discounted rate at which the CPA considers - not part of this topic.

To keep this very simple in terms of discussion: 

1-how do you track your profit when a note is paid off? Is it the same as a sale? 

For instance, you invest/fund to purchase a note at $60k for which the UPB is $120. If you sell after a couple years of payments for $75k then profit is anything over that initial $60k cost (sands any other expenses/fees just keep it simple). But if the borrower pays off the $120 (likely less since payments being made for a few years reduce the UPB), it's still greater than the initial $60k so do you consider that like a sale and just caulk it up to capital gain?

Just trying to keep this as a simple example - I realize there are a lot of moving parts to this.

You are lucky to skirt the payments prior to the city actually doing a proper (or supposedly) check up on residential properties for which we who own in the city have already been paying. This is just a structured (again supposedly) way of them actually doing inspections now. How have you not been paying prior to this? They have been looking at properties whose addresses do not match between mailing and physical and sending notices to collect, if the person can prove they are in fact not renting the house.

@Matthew C. Frey

For the first time one of my rentals suffered a horrible tenant - they just went complete opposite of anything we (me and the PM) just didn’t see.

They were evicted but left on their own after the order was approved. With that, I had to do a major clean up including dealing with roaches.

This stuff works like a charm.

Syngenta 383920 Advion Cockroach Gel Bait 4 X 30 Gram Tubes Roach Control, 4 30, Brown

Found it on Amazon and applied it to the hinges and under drawer corners.

Unfortunately, the new tenant came along and couldn’t just say no “we need to rid the roaches first”. So there are still some left but this stuff is being used to continue getting rid of them. Had I had another week they would have been gone. It was working well and easier to deal with in an empty house.

@Daniel Saunders

I am interested in what you mean by virtual if they are not local, wouldn’t it be the same as you managing and not being local?

@Chris Mcdonald

Can you recommend some companies in the near area that PM. I just need basic services.

@JD Martin

I am using the app on my phone where the photos are but the app doesn’t support images - that I could find. I’ll have to get to a computer and see if I can upload a photo.

The walls and trim were painted the same all throughout the house and I would like to do the fixtures in white. I don’t want to change the color scheme to match the fixtures.

@David Lee Hall, III

Thanks.

I only found one video that someone did using 120 sandpaper and lacquer. Not sure yet if it’s the same as epoxy.

The rest of the videos had to do with removal and disposal.

@JD Martin

I just need the fixtures not the entire bathroom. Ie toilet paper holder and towel rack holder.

The bath tub is fine as is and there is a surround and no tile. If I need an entire bathroom I will keep that in mind.

@Chris Mcdonald

Hi

It’s a rather late reply but are you still managing?

Short of cutting the drywall to remove the fixtures, can anything be done to change the color while still attached to the wall? I want to do white from the tan current color.

These are the toilet paper holder, towel rack, and soap dish fixtures - I think porcelain - old style material.

I would attach a photo but I don’t see any links to do so.