All Forum Posts by: Sonu Sharma

Thank you all for your help ! Will try to go the collections route to see what I can get. Fortunately, the house wasnt damaged much by them when they left !

Hi, I had a tenant at a property who I had acquired with the property about 2 yrs ago. The tenants were living (for 8 yrs when I bought it) in the property with a month-to-month lease when I purchased it but had no deposit with the previous owner. I was able to convert them from a month-to-month lease to a year long lease but did not collect a deposit, which was a big mistake. Learnt a big lesson !!

They had a lease until June 30th, 2018. However they vacated around June 2nd without giving any notice and wouldnt pay their rent for June.

When I contacted my property management company, they wrote me back this -

“Since the tenant has already vacated the property, the next step we can take is sending the tenant to collections, which would be a 3rd party collection agency. The collection agency would continue to try and collect the funds, and once collected, they would keep 50% of what is collected from the tenant. Another option would be for you to take the tenant to small claims court to collect the rent that is owed to you.”

With these two options and not having the deposit, what would you suggest I do ?? Any other possibilities ?

Thank you for yiur help.

Can anyone please let me know a fair interest rate that can be charged on an owner financed loan to a buyer in TX ? I remember that there is a formula used to calculate the max rate but I wanted to know what people generally charge in TX for an owner financed note. Also would like to know the length of the loan you recommend for such a loan - details below. Details: Sale price : 103k Cash down : 70k Owner finance : 33k @ WHAT rate ??? Terms : 5 or 10 year note ???

Thank you all for your comments so far ! Based on my research on the forums, I have the following note servicers who provide loan services and attorneys who provide related help ! Servicers: http://notecollection.com/ https://allservicing.com/Home/Contact Attorneys : Horne and Associates If anyone has had good experiences with others, would appreciate your experiences and contacts.

Thanks Antoine Martel . Agree that an attorney would be helpful for any legal matters but not sure how he/she would know how to handle changes in escrows and other stuff. Arent there any companies that handle this kind of stuff for investors other than attorneys ?

Thank you Sean Ridlon Shawn Clark . Will check to buy the monitor you mentioned.

We have been investing with a buy and hold strategy where we bought off market properties in Dallas TX, rehabbed them using hard money loans and refinanced them with a 30 yr fixed mortgages. Although the rentals were good in the beginning in terms of cash flow, we have soon realized that tenants eat up into cash flows with constant issues. As an alternative to this we have heard that we could owner finance these homes and still make some money without the headaches of maintenance. The process seems daunting, confusing and laden with some legal stuff that are better understood before venturing out. Although we know that there is a risk involved with this and that we can sell the house as owner financed, we are mainly worried about the backend stuff after the house is owner financed like the following - how to manage changes in property taxes and escrows - which of the changes to pass on to the buyers as their mortgage payment from time to time - how to manage non payments, foreclosures - how to handle home insurance changes - how to handle refinances, sale of property - how to handle any legal issues where the buyer is not happy with the house despite disclosing every possible thing. - due on sale clause - we know some attorneys can fight this - anything else that we may have missed Would those of you who have done something similar know how these things are handled. Are there any companies that provide full service management that cover these issues ? Are there any mentor/videos that can guide us through this process ? Appreciate the help !

I invest in off market properties and have always been a little worried about going into properties with hidden big ticket problems as the wholesalers dont give enough time - plumbing and mold are big on that hidden list, in my opinion. I can kind of approximate plumbing repairs but wanted to know if there are any easy ways to spot any hidden mold. Are there any tools/sensors that could help with mold detection that other investors have used ? I heard that mold problems can be very expensive to get fixed. What do experienced investors look for in terms of mold and plumbing to spot hidden problems?

I have an umbrella policy as an add-on to my auto policy to cover for my rentals. However, would anyone know if the same umbrella policy covers for properties once I sell them ? Asking as I heard that the buyers can sue the seller for certain issues after the sale. This happened to a person that I know who got sued for foundation issues a year after the sale although the case was withdrawn later by the buyer. I wanted to see how we could protect against such liabilities once we do not own the home.

Hi, I am planning to owner finance some of my rental properties in the DFW metro area in the coming months. Can anyone please share any contacts in DFW that can help me with the owner financing process from advertising to closing and setting up with the payments ?