All Forum Posts by: Ron Flatt

Let me put in my two cents here. 

The tax implications are a major concern, but the main concern I see here, is that your pulling your funds out of the market at close to the bottom.  I do believe that we could see the lows again, but I also see the market rebounding readily after this pull back.  I personally am putting more in the market at this time.  After, the market recovers would be a better time to pull, and put into a flip. 

There are always houses to find to flip.  I am always looking. I wish I was not in the flip I am in currently, because I think I would have made more putting it into the market the last two weeks.  My house will not be finished until the end of May and then put on the market.  We will see another 60-120 days before closing. 

A flip will tie up your funds 6 months to a year, (unfortunately sometimes longer).  The market can be liquidated fairly easily and quickly.  Personal thoughts put your 401k money into the good stocks that have been beat up, unjustly.  I could be wrong, but I know personally, I am cutting corners on this flip, to put cash into the market.  

I expect property values to take a small hit, but not an enormous one.  People need a place to live and there will be some fall out.  I believe that the most vulnerable, are those Landlords that are heavily leveraged.  It is still early and I will feel the pain, but I still received the majority of my rents in April.  I did give a break to my only commercial tenant, because they are shut down and they were happy for a 50% reduction in rent for 3 months, (hopefully they can reopen).  
My main problem, is an eviction I started before the Virus, but was put on hold.  So now they are staying free and not paying rent, (just promises).  
I recommend, do not over leverage yourself, keep a cash reserve.  Screen new tenants carefully and work with your good tenants.  
I am looking for some bargains, where individuals panic and want to bail or were over leveraged. 
Keep your head on straight, stay calm, treat others as you want to be treated and remember it is a business so you have to take care of your business.  

I have bought several on Auction.com. (They do bid against you). Realize that the property may be a federally guaranteed loan such as FHA or Freddie Mac. They will not sell it for less than the federal insurance they have on it. Some are way overpriced. Keep watching it may come up at the price you want, otherwise, just pass it up and find the next deal.

This is a simple solution.  Have them get a simple Warranty Deed online or from an office supply store, fill in the blanks with the proper legal descriptions.  then they transfer from themselves as an individual into the trust.  they will have to sign in front of a notary, then file at the county clerk.  

I have found that mortgage brokers offer fast closing etc etc, but I have not had one in several years that did not take 90 days or longer.  On a portfolio, that I did it took almost 8 months and I was working directly with the bank.  
I owner financed one last year, gave them 18 months to refinance.  If you are in the position to do this, you can make some good interest and still get your property sold.  

Howdy Miguel, I am just south of you in Hillsboro, TX.  Let me know if I can be of assistance.  

I renewed the lease for two of my tenants this month.  One is laid off, but has been with me 2 years.  I only offer 1 year leases.  I try to increase my rents some every year, but this month I did give a break to my one commercial tenant for 3 months, the one I renewed lease on, I reduced her rent by 200 for the next 3 months, and one other i reduced by 100.  April I did forgive all late fees, if rent is paid by 15th.  
Good tenants are hard to find, I would recommend keeping them if they are good renters.  Possibly, give a break for 3-4 months at a reduced rate and then give your general raise in rents for inflation.  
These are suggestions, and things that I am doing to keep everyone afloat.  I want to make sure that I am not causing stress, but it is a business and we have bills to pay on rentals.  

Depending on area,  It may be a steal.   Many of the old historic homes in my area are being revamped.  I looked at one, but found that being in a historic district in my town, they were requiring me to keep that charm, $$$$$$.  An old home (1920s),  you will probably need to update plumbing and electrical.  Hopefully you can refinish some beautiful hardwood floors, or at least keep some of them.  Without more detail, I cannot be sure, but I can assure you that I think your looking closer to the 100K than the 50K for a full remodel, and can be more.  Look at it, put a pencil to it on the high side and then add 10-15%, that will get you close.  

I am in the middle of a major rehab now, but on a rebuild that was priced out at 60k it has turned into probably 75-80K.  That is on a 1500 sq ft, home.  Once, i scalped it and put on the new roof, we found many ceiling joist that were broke and scabbed improperly, wiring, plumbing etc.  Just be careful but it is doable.  In my area, incomes do not justify that size house.  The reason many are sold cheap, because people cannot keep them up.  

that sounds like a great rental to me.  Do not compare your rentals to what you expect.  Many apartments have small bedrooms.  An 8 X 12 is an ok room.  It could be nursery, a childs room, or an office.  The key is 3 bedroom rentals are in high demand.  If you can buy it right it should stay rented in the Greenville area, wish I could find about a dozen in Hillsboro at the right price.  

Folks, I am here for information for my wife. I have 20 doors that I rent. My wife does not care for the SFR rentals, because she sees me dealing with my maintenance men, contractors and tenants.

She has researched and wants to get into self storage.  I have deeded over 11 acres in Hillsboro, TX for her to either build a self storage facility or use as collateral to buy one.  She has searched the Burleson area, but there does not seem to be much available for sell, but the demand is high, however the cost to get in is rough.  I suggested she put in a climate controled storage unit, with covered boat and RV parking on on undeveloped part of the 11 acres and maybe 100 unit not climate controlled area. 

I welcome your comments and advice that I can pass along.