All Forum Posts by: Russ Draper

If there are 6 units it should be easier to get a commercial loan for it, why not go that route?  I presume they all have the same/similar address (10 Main St #1-6 or similar)?  You might have a better time if you put down a larger percentage.  Often times banks don't want to do mortgages for small amounts though, but they will do them eventually.  I had several with BofA years ago.

I thought there were laws for egress, as in 2 exits from a building which you might have anyway.  Why lock the door like that though?  Just ask them to not walk through the yard with the dog unless there is a fire.

I have heard that getting funding for MH's is difficult due to them usually being treated as a depreciating vehicle and not as a permanent structure.  I would try to get the financing question answered before you buy!  They might not even consider it real estate and only lend based on land value.

Remember, there is no "get rich quick" there is only "get rich slow".  It is going to take years, try reading lots of books to pass the time :)  You may find a way to execute your plan faster if you keep learning!

Most first time buyers are surprised to learn that banks won't usually lend to a LLC/S-Corp/etc with no history. You'll likely have to get the mortgage in your name anyway and then quitclaim it into the LLC. Most people do this. So I would say there is no rush, do it in the first month after you purchase the property.

I hired a local attorney to draft the quitclaim for my first property, but legalzoom or similar sites can do it also.

To me, this just sounds like its a bad deal.  The margins sound too slim to me.  Is this in an area that is likely to appreciate in value (very close to city)?  If you want to earn 3% return you could just invest in a conservative annuity or something!

Psychologically they will likely not want to sign it unless they REALLY want to keep staying.  You should definitely raise rents each year, and put into long-term leases rent increases.  I wouldn't eliminate it though, but make it clear that rents are expected to rise each year no matter what, and it might raise more if they only sign 1 year lease.

Well commissions are sort of a mixed bag, with a lower fee sometimes agents are less likely to want to show the property and they will snub you.  However right now there are many hot markets that sell quickly.  The 6% is probably 3% buyer and 3% seller, so is the 5% 2% buyer and 3% seller or 2.5 each?  Is this agent a top seller for the area?  What makes you think she can sell it faster and for the best price?

The best way to negotiate a lower commission is to find another company that will do it for less.

To be blunt: Walk away from the deal.

Just think of all the problems he ISN'T telling you about that you didn't notice yet.

I think you just have to wait for them to finally get around to processing the paperwork and listing the property.  It can take years for a slow bank to get around to it!  The last property we bought at foreclosure was vacant for 7 years before we bought it (obviously an extreme example)!