All Forum Posts by: Patrick L.

On most properties of value the rate gets bid down to 0.25%, which actually pays the minimum interest of 5%.   It's pretty competitive to even get in at that rate as there are tons of institutional bidders.   Most that go at higher rates are higher risk properties that are more likely to default and may even be worth less than the taxes (especially those that go for close to the opening bid of 18%)

Depends on what the issue is.  Are you trying to evict them?   Are they suing you for something?  Are they fighting with each other? 

 The bank is entitled to secure and preserve their collateral, which includes changing the locks if the property is found to be vacant.   They don't own it and  they aren't kicking anyone out.  Read the entire mortgage, there's going to be a clause that they can take reasonable action to preserve their interest in the property.   Same reason they can cut the grass, winterize, and make essential repairs (board up broken windows, repair/tarp roof leaks, etc).   They're changing the locks because it was found to be abandoned and their property preservation company will be coming by to check on the property routinely and they need access.   If the owner wants to move back into it you can still do that until it's foreclosed.  

I use routexl.com

Just use the FAR-BAR As Is Contrat, it's simple and covers pretty much everything.   

Expenses seem rather high, are there any opportunities for savings on that end to improve the cash flow?  Is the owner paying all utilities?  Can anything be submetered?   

Buying a property like this I would want a really big cap rate.  It sounds like form your description that the rate of this entire town hinges on this factory.  If the factory closes or moves then what happens to rental demand?   

@Autumn Allen It looks like the expenses are very understated to come up with that cap rate, which is pretty typical.  I found the listing and they list some expenses but there is no vacancy allowance and no management expense.     The only expenses they list are utilities, insurance, taxes and only $4600 of "other expenses" which would bneed to cover all of your repairs and cap ex I guess (although I would expect to spend more over the lifetime of the property).  

Current owner paid $776k a year ago, has there been that much appreciation in your market in the last year?  

You might want to check to see if those fees are legal in your jurisdiction.   Here in FL can offer an early termination fee that does not exceed 2 months rent as "liquidated damages."    Keep in mind you also probably cannot charge two tenants rent at the same time for the same property so if you re-rent and have 1 month of downtime you have a month of double charging people.   

There's nothing wrong with charging an early termination fee because it does cost money and time to turn over a rental, however I feel your fees are predatory and if I were you I could ask an attorney if they are legal before you pursue the tenant for those damages.   I charge 1 1/2 month's rent as an early termination fee.  

I've done it before.  I backed up my truck up to the truck and tied a rope around the carpet and the other end to my hitch and slowly pulled it out with my truck landing each end on top of a furniture dolly.    Took a couple guys but it worked out fine and we were able to roll it to the garage.   

I got my start in business doing online marketing, mostly through SEO.   If you use the type of gigs Fiverr offers for your actual site you will run the risk of getting your site removed from any rankings it may have.   The stuff offered there is cheap automated blasts of spam links.