All Forum Posts by: Russ Draper

We had looked at some portfolio deals but didn't want to have to wait 5+ years to exit, we wanted to be in more control.  Perhaps we should look at larger properties, 20+ units or more.

First of all, only offer what makes sense to you.  Don't try to fudge the numbers to make it work hoping everything is going right.  If the numbers show its only worth $312k then that is your max offer.  It doesn't matter what they paid for it or what they put into it, only what the market shows its worth!

I would try education and show that the buildings need work, they may not believe you and list anyway, and then sit on it hoping for a more gullible investor to take it, and then after a few years come back to you!

We're going to have a look at a few different cities in TX and wanted to ask for people's opinions on what is best.  We plan to look at 4plexes and 6plexes in the areas.  We would be out of state investors.  We're considering Dallas/Ft Worth, San Antonio and Houston.  We've never even been to any of these places.  What would you suggest?

I would try to appeal as a blue-collar worker to him, saying you want to help him out and to see if you can find him a good deal.  Don't use the word investor, just say you are like him only younger.  Just don't try to do something that doesn't work for you.  Don't underestimate having the time/ability to make the deal happen, some older people don't have it and it is worth it to them to sell lower vs not sell at all!

Most local brokers are going to sell the loan anyway, so going with AmeriSave vs a local bank wouldn't matter much to me.  What matters is can they close the loan for you.  What was in the $10k closing costs vs $6k closing costs?  They should have sent you a GFE listing each item so you could compare.

I wasn't aware people paid for them, if you partner with a broker they might do it for free.  If you are going to be doing it frequently you might want to think about getting a R/E license yourself so you can do it.

I don't think you can evict, and I don't think you can charge a "pet fee" or anything for a ESA with letter from therapist.  I think you are right, you just have to accept it and move on.  I would perhaps not renew the lease though.

I have 2 insurance questions:

1) Why does it matter if a property was insured before I purchased it?  If I am purchasing it now and it didn't have insurance before, why would that cause it to be denied insurance today?

2) Why isn't there an option to replace a building at the price I paid for it or similar?  For example I purchased a building for $20k and then was told I had to insure at replacement value, which was over $200k.  The cost of the insurance made the building not profitable, so I skipped insurance!

I agree with Thomas S.  I would bill the tenant, the excuse of "someone else did it" doesn't fly after 2x.  Unless she has filed something with the police saying he is harassing her or something I would think she is responsible. 

Wow, if I had to deal with that I would just sell the property.  That kind of over-reaching is ridiculous, no warnings is unacceptable!