All Forum Posts by: Ryan Logsdon

Dawn A. you may wish to re-read the story again. It's unfortunate that some people see only bleeding hearts when there's a much more valuable lesson to be learned.

Tom Goans did something much more profound that relieving someone of 2 months of debt each year (a great thing on its own!). He lowered his associated risks. In the right situation, and to the wise investor, this is much more valuable than what was given up.

Awesome story Tom! It reminds me of a note modification my dad did years ago. The mortgagor lost his job. He called my dad up to see if there was anything that could be done. That month, he had to choose between paying utilities and paying the mortgage. My dad worked a deal with him:

He was relieved of the month's mortgage, but he needed to pay the next 12 on time. Further, if the next 12 came on time, my dad promised to knock $100,000 off the value of the note. This would let the mortgagor re-fi on a substantially less valuable property, buying my dad out early.

Well the mortgagor missed a payment later in the year, but not before calling my dad well in advance. My dad decided to give him 1 more shot. The 12 months were entirely reset, back to month 1. No grace periods this time, and if there were any setbacks, the offer would be off the table.

It was this incentive to be a loyal mortgagor that kept the property afloat, the mortgagor in a great position, and it gave my dad an increase in his investment rather than a decrease.

The following is N-O-T legal advice.

A quick search on the USPTO site shows a number of registered trademarks containing "ugly" and "houses". Here's the advanced search:

(ugly)[ALL] and (houses)[ALL]

Yes, the note could have been sold, but that's really the only jumping point Greg Gallucci has to start with.

Don't forget to mention to the tenants your fees for resodding the lawn.

Exactly!

1) It tells you nothing more than a call to the employer would (given the individual is not self-employed).

2) It's unnecessarily invasive and time consuming; spend that time looking for stronger tenants rather than scaring away the existing crop.

Under normal circumstances, the seller's agent will know. But to gloss over the fine details, it's pretty safe to say: if the bank isn't already looking for a sale, you'll be wasting your time.

Calculating ROI from rehab is much easier than building a full pro-forma (which should include your taxes, as those are regular and repeating expenses). If you're looking for a 25% ROI on the rehab of any given unit, putting in $2000, you're looking for an extra $500/yr. So the math is...

original income = $650 * 12mo = $7800/yr
rehab income = $500/yr
target income = $7800 + $500 = $8300/yr = $692 * 12mo

In summary, a 25% ROI comes from a $42 or 6.5% rent increase.

Joseph L. if you're planning on raising rent by 13% with next to no improvements, your 10% vacancy is about to skyrocket....

And depending on your location, an increase by that amount may be prohibited. So check that out as well.

Hi Mary B., if you search BP, you'll find sellers' stories of these fly-by-night lenders. Your offers will end up in the garbage, having never been read.

Tom Goans let me know when you write a book. I'll read it.

Hope you had a good 4th.