All Forum Posts by: Account Closed

@Nanci Janes I highly recommend a daily late fee, so there is more incentive to pay sooner rather than later.

My lease states they have until 11:59pm on the 3rd. $50 late fee on the 4th and $5 everyday thereafter, with a maximum of $150.

It’s clear and incentivizes a late tenant to pay sooner (ie the 7th rather than the 15th)

@Account Closed Negative 12% doesn’t sound so bad when you compare it to the positive 250% we’ve experienced the last 8 years. 

ABB - always be buying 

@Nick Rutkowski I have done it... albeit small sample size. One of my properties is a mixed-use building with 4 apartment units and a convenience store. I bought the building, land, and business all in one purchase.

After operating the convenience store for a year, I sold the business and kept the building and land. Now the new business owner pays me rent. The property is actually worth much more now than it was when I owned the business because the lease has tremendous value. It’s also now a passive investment.

@Chelsea Broersma I bought 21 of these junkers from 2009-2011. They were $1-5K back then and they still are today. They are on the worst streets and attract the lowest quality of tenants. Do not buy these. Cash flow on paper will never happen because in reality you will never collect 12 months of rent in a row and will spend heavy on cap-ex yearly.

If you must invest in (metro) Detroit, stick to $60K and above and more importantly rents at $1200/month/unit (SFRs in nicer neighborhoods)

@Curtis Thygerson I agree with @Cody L. Take the investor job all day.

Perhaps you could negotiate to be a GP on some of the deals you source? Even if it’s a small percentage, it would be nice to start your portfolio right away

You shouldn’t be looking at homes. You should set your search criteria to multi family. 

You should also speak with a lender to get you pre-approved, before you analyze deals. @Chris Mason is great and has done several loans for me. He can add in future rental income from the other units (that you’re not living in) and use that to help you qualify for a more expensive property. 

@Vivan Bhalla you should be looking at multi family, a duplex up to 4 units. With your $50K you can afford much more than $700K because the potential rental income will help you qualify for a more expensive property. 

Yes it won’t be a house, and yes you’ll be sharing space. But if you make this sacrifice, you can likely find cash flow in the Bay while benefiting from the immense appreciation. 

Lima One Capital would be great for this, although it won’t be non-recourse. 

They'll fund 80% LTC (purchase and rehab funds) as long as the loan amount is no more than 70% of the ARV.

PM me if you want their contact info 

@Jonathan Schwartz do yourself a favor and charge a daily late fee. Don’t just charge $50 or $100 flat..because every day matters.

I charge $50 on the 4th and $5 every day after that.

Doing so ensures they pay it quicker rather than later.

@Greg M. everything you said about LA sounds exactly like Oakland and SF. Everything except RE prices being way down. For some reason it’s still record prices