All Forum Posts by: Bill P.

@Jarrod Weaver 

I don't know much about these leases but would also like to learn more. I always dreamed about being JR!! Keep us posted on your findings.

@Eric Giovannucci 

 After reading your details, I would probably enter into a land contract (contract for deed) and accept $11K down leaving you have a $1K positive spread. ( @Dion DePaoli  is correct as the 6 - 12 months seasoning won't be of any value in this case as there isn't any value in your note. ) Have the buyer make payments equal to your payment and service it that way for 3-5 years whereby he needs to get a new mortgage. The $1K spread you'll collect at the true closing when he gets a new mortgage. The reason for the spread is you don't want to go negative. That is illegal in many states. It is in Ohio, probably in Texas as well.

@Phillip Gonzales 

Congrats on deciding to be a real estate investor. It is a great career. Now to your questions. There is a division of opinion on should you get your RE license. My OPINION is that you should not as it is a lot easier to acquire some properties without a commission getting in the way. Sometimes in this market, 6% can kill a deal. The knowledge that you have learned in those classes puts you heads and shoulders above 90% of the investing public and you should use your knowledge to your long term benefit. Acquire some money, spend time with your family and build a good foundation. As far as you renting; go learn some zero money down methods and go get your house under a lease/option or subject2 and start your life out anew in 2015. Hope this helps.

@Eric Giovannucci 

Agree with @Wayne Brooks  as your note isn't seasoned enough to fairly gauge the net present value using all facts of the note. We buy notes once in a while and reading your narrative makes me think that you would have to pay me to acquire the note. LOL It's just not ready to sell.

@William Pickett 

It may have been because the other party had better credit than your tenant, or; the tenant has outstanding bills at the power company, or; someone else is going to be living there as well. other people paying for utilities happens occasionally when a friend is planning to live there as well. Or it could have been a favor from his parents to schedule the utilities on. Don't guess at the reason why, go find out the true story. 

No. I think NEEDING to be at closings stopped around 2000 although some people still do it the original way. "Mail aways" have been around a long time since corporate transfers dictated the need for them. I haven't attended a formal closing in 12 years as my time is better spent running my business.

@William Pickett 

There is definitely a lapse of reason that allowed someone to forge your name. But the next step is to find out why it happened. Obviously, you were going to sign for your tenants so having the paper signed isn't the question; it's how it got signed. Find out the story to see if they attempted to contact you but couldn't find you. See if they have a reasonable excuse before you simply evict them. If you can live with the story and explain that you never want them to do that again, then just move on since you will have paying tenants. If you don't like their reasoning or they are squatters, get rid of them immediately. The decision is yours as it will only affect your wallet.

@Justin Colley 

The use of a HML will probably cost more than the benefit that you receive once you consider closing costs, points and the interest rate. You could always try to find an investor to give you a private mortgage.

@Christopher Gilbert 

In a perfect world, the PM should have given you a final accounting and any funds held within 5 business days (as it really isn't that hard to account for smaller landlords). But I think that within 30 days would be the deadline as that allows the old PM to go through another business cycle with their business and calculate a payout. I am sure that this situation may be covered in Texas law; so I would just read the statutes for your knowledge. I would then write a certified letter demanding your final accounting and funds.

Welcome to the world of real estate. You'll be find. Just got to get use to the ineptitude of financial institutions, sellers, title agencies, buyers, investors, real estate agents and even yourself once in a while. REI is a great business but it is a people business, not a property business.