All Forum Posts by: Silvio Brigliadoro

It is not that is difficult, it just takes a different set of "tools". It really depends on the type of "foreclosure" transaction you are buying: pre-foreclosure / short sales your earnest money deposit could be just about anything you and the seller/agent can agree on, even just holding your check un-cashed until final short-sale approval.

REO's it would depend how the offer is presented and who the seller is, cash vs. financed, etc. As a general rule the EMD would be anywhere from 2 to 10% of purchase price.

You will then need to fund the purchase using the sources/ideas listed, if you are buying well under market, you will have an easier time and more people interested in JVs, EQ partners, money partners, hard money, etc. Good luck!

If I may suggest, find the Real Estate clubs in your area and start attending the meetings and networking with other local investors, speakers, etc. It may be a great way to meet mentors, RE trainers, etc.

I've made a similar list, added some pricing next to each line and made it part of the rental agreement. You could get creative and add replacement cost for mini-blinds, missing/broken screens, etc.

When they are about to move out I email the tenant a copy of what they've signed as a reminder, it's worked great for me.

I wouldn't worry about the capital that much... if you have a good deal under contract you could easily find the money.

Not sure if anyone mentioned raising some private funds from family and friends and secure the note with the property. it sounds like an expensive lesson, may be a good idea for him to add a provision in the lease with the future tenants for routine inspections...

The two are relationship driven, they also complement each other very well. A HML can fund your deal and a private party individual could fund your rehab costs.

You will be way better off building rapport and establishing both relationships, they will serve you well.

Roy, I was researching late fees a couple of months backs and reading something important to keep in mind in California:

An attorney was pointing out that if your tenant ever disputes in court that your late fees were not "reasonable" during your UD hearing, and that these fees were more of a penalty, the judge could order these fees to be refunded to your tenant, making your 3-day notice "defective" hence dismissing your UD.
... "late fees must be reasonably related to the costs that your landlord faces as a result of your rent payment being late . A properly set late fee is legally valid, but a late fee that is so high that it amounts to a penalty is not legally valid. (Harbor Island Holdings, LLC v. Kim (2003) 107 Cal.App.4th 790 (liquidated damages provision unenforceable because it bore no reasonable relationship to range of actual damages parties could have anticipated); Orozco v. Casimiro (2004) 121 Cal.App.4th Supp. 7 (late fee invalid because landlord failed to establish that damages for late payment of rent were extremely difficult to fix). "...
"Unless the lease specifically defines late charges as "rent", the 3-day notice to pay rent or quit cannot include late fees as part of the unpaid rent. Doing so would render the 3-day notice to pay or quit defective."

I completely agree with Kyle Meyers, sounds that you may have more of a "management" problem than a tenant problem...

YOU !
No one will care more about your property and your money than yourself. Who has great credit these days? Some of my best tenants have lost their house to foreclosure, some even have a BK on their credit. I run their credit, but I look at many other details like how their car looks, their personality, attitude and focus on their job stability and ability to pay.

David, depending on the circumstances, it could make a huge difference in my opinion, I would take the Private Lender/Individual most of the times; time and circumstances changes people's minds, you could re-negotiate terms, move the note to another property, etc. Hard Money lenders will be way more strict on these types of creative transactions...

George,

How about doing both?
Multiple streams of income will always make you a living. It's not clear to me what type of retail deals you were referring to, are you planing to buy, fix and retail or just be a buyer's agent?

Flipping/Retailing will have it's own set of obstacles to overcome, deep discounts would be one of them, rehabbing it's just one more of the many tasks that you would have to master.

I hold a license mainly because of the benefits it brings to my RE biz, but I am not planing to be driving around showing houses to families with screaming kids any time soon :)