All Forum Posts by: Shane H.

Is this your first billboard?

And then there was one less angel investor out there. 

For me value is determined by cash flow so you’re asking if the chicken or the egg came first…

 I just noticed I never responded to this thread. I have had other deals fall through and paid for the service. I never directed anyone to do a service in this case. The real estate agent automatically sent the contract to the attorney, the attorney automatically ordered a title report. I had a property under contract that burned down 4 days before closing. I paid for all of those fees without a second thought. They performed tasks I hired them to do. Title report. Appraisal. But that attorney, as usual, asked me when I would like the report run. The appraiser spoke to me before doing an appraisal. As I see the case where this post was concerned, the real estate agent ordered a title report. (Dual agent by the way.) 

I run a service business full time. I have customer relationships where I know what they want and act without a call. But I know the risk. They could tell me they didn’t want that done. I would never do that for a customer I don’t know. This situation was crazy to me. That title agent is likely going to complete the final transaction. Is the second buyer going to pay for the same report?

 I’ve never seen such a “lease.” I have seen perpetual advertising agrements and easements though. Is there a recorded easement? 

Is it 400 or 500? Huge difference in percentage. Either way in my experience it is slightly above average even at 400. I would ask the question what’s a reasonable % of revenue for a billboard land lease and see what some other more experienced owners here think. Is their an increase upon automatic renewal? If there is I would be cautious about opening negotiations as they may counter with a lower rate than current. At the moment the advertising revenue is down. They are wasting no time capitalizing on that to renegotiate lower leases with land owners under the threat of removing the sign. If the area welcomes billboards you have a better chance to negotiate since another company could take the location. If it’s preexisting in violation of current zoning once they remove it you can’t put another one up. So they have 0 competition. You can keep what they offer or lose that revenue source entirely. Though since it’s on a commercial lot there’s a fair chance it’s safe to rebuild. I’d verify though. 

I fired that post off while I was running out the door and made an absurd number of typos. Im aware of them, but the app does not have an edit function. My apologies to everyone offended by my spelling and grammar. 🤣😂

I literally had this discussion yesterday about why anyone would save the $30 installing the short toilet to begin with...

Ignoring the fact that the guy is a veteran, if any tenant of mine asked for a higher toilet for a medocal reason (which would only have a short toilet because i habent remodelled since purchasing...) i would get it done in a reasonable ammount of time. The only chance i would even be bitter is if theyd been there like a week. But even then, non contractor, non real estate investors, dont even know there are dofferent toilet heights. They saw a tpilet on inspection. Do your tenants usually sit on the toilet to make sure they can get back up easily during their inspection of the unit?

If your cashflow on this property is so tight you cant afford to give a disabled veteran a toilet for $300 or less, maybe you shpuld consider getting out from under it. In my area i could call a plumber i know right now at 9 am and probably have that toilet installed this evening, for no labor charge to help a veteran out. Nevermind that i would probably just do it myself. I agree with the above poster. Add a grab handle while youre in there.

@Tim LLaycock

But what ARE those things that you have to do? "No longer be deemed credit worthy." Anything of that nature? I obviously cannot vouch for every heloc contract. But only after seeing what happened, did i interpret what was in the contract to mean what they meant. When they "recalled the loan." To this day the banker who got that HELOC for my father insists its a safe product. "They never do that." "Ive never seen it in 30 years." Etc. Etc. Offered the same product to me. On the same property. Insane... they really never explained why either... they just did it. But heres a few ways ive found that can trigger it without ever being late on a paymeny.

Have your credit drop below their criteria on a ramdom soft pull.

Have your DTI creep above their criteria.

Maybe by losing a job, an income source, having an unforseen expense that you pay via debt.

Death of a spouse thats on the note, maybe even one who isnt... if it affects your creditworthiness.

Property no longer meets their criteria.

No longer primary residence.

Some decrease in appraisal vaue.

Disaster not covered by insurance. I have a funny story about a dam that broke andthe water that then flowed down a highway and flooded homes that no one ever imagined would flood...

When i write an offer i specify where the money is coming from. Is that not a thing? Like "contingent on x% financing from abc bank at x% for x years." The seller is welcome to accept it or not. If that finamcing falls through i dont see why i would fel bad. It was clear. But this... this is the reason sellers are asking for prrof of funds on 10k... lol

In regard to the HELOCs being recalled. Its real. You do not have to be late on a single payment. Its the craziest thing that you wont understand until youve seen it. No one wants to believe it.