All Forum Posts by: Rico Quatro

Can you be more specific when you say you use ACH?   I would like to have someone design my own web site for rent collection.  

I don't want to rely on a 3rd party web site.  If they go out of business, I'm screwed.  That's all my eggs in one basket.  I have looked at ACH gateways, but everyone points me to a merchant account with a 3% charge per transaction. 3% of $1500 rent is $45.  My tenants won't pay that, and neither will I.  Anybody have any suggestions?

I pay my taxes and have nothing to hide, but I would prefer not to share my income with a 3rd party; or anyone else.

I understand what you are saying, but let me be clear.  I screen my tenants carefully, and try to be fair and patient; but once I file an eviction, I don't want them as a tenant ever again.  I will not accept any money from them; I want them out.  If they are able to deposit 5 dollars in my bank account, I have to start over and they get (at least) a month free rent.  I have no experience with reverse payments. Most tenants know how to play the game.  

The problem with Zelle, Venmo and the like is you can't stop a payment. In the state of Texas if a landlord accepts any rent during an eviction, the eviction is null and void.  The landlord must re-file and start the process over again.

Can you setup Cozy to automatically charge late fees?

Can you setup Zillow to automatically charge late fees?

Talk to some hard $ lenders in your area and see what they charge.  Some of them list their terms on their web site.  Points, loan origination fee, interest rate, down pymt, term, interest only pymts, amortization schedule (including principal), payoff penalty.  It's unlikely, but possible your guy can flip a house in 3 months.  If so, you still need to profit enough to make it worth it.

Last company I worked with took over 2 months, just to tell me they don't loan on duplexes.  Applied with PenFed.  I'll let you know how it goes.

My father once told me "Never loan money to friends; you risk losing both." Having said that, opportunities are everywhere.  Make sure you talk it over completely and in detail before loaning any $.  Make sure you are in a first-lien position, get proper paperwork drawn up by an attorney at a reputable title company.  Know what you are going to do when the property is sold.  Know what you are going to do if your "friend" doesn't pay.  Talk about interest rate, term, pymt amount, late fees, insurance, foreclosure. Ask your friend to show you paperwork from previous deals.  Have the hard conversations BEFORE investing.  Good luck.