All Forum Posts by: Thomas Williamson

One thing to think about in terms of buying a home versus and investment property or both, is buying a personal residence limits how many investment mortgages you can have (If you're going to be using banks).  I personally don't have a personal mortgage and never will again.  I mentored my adult children to do the same.  I know renting cost more, but in the long run you're debt to income ratios won't look as bad to a lender.  150,000 of debt will slow your investment goals way down. Good luck either way you go.

@Andy D.  They still have to meet the income requirements.  I don't rent in low income areas.  The reason people like it so much is because many people do get paid twice a month and they simply like the flexibility of being able to spread the rent out over the month.  Some of my rents are 1200 and 1300 dollars, so for a couple with two or three kids, they like that option, especially around the holidays.  Several tenants do pay the full amount on the first of every month, even though they're not required.  

The bottom line is, if tenants see that you're willing to work with them, they will pay each and every month.  This system has worked very well for five years, and I don't stress like many investors around the first of each month, then try and chase down late fees on top of that.  I like the business to be on auto pilot, and doing what others don't do.   Food for thought.  

Something to ponder.  I changed our business model many years ago because of this issue.  I don't charge late fees, and I let my tenants split their rent payments.  The first half is due any time before the 15th of the month, and the second half is due anytime before the end of the month.  Worries and hassles gone.

I realize this isn't for everyone, but it's worked for years for me.  Tenants know other landlords won't offer this, so good tenants stay (and pay) for years.  Stress, gone. 

I can tell you one to avoid.  That's MB Financial.  There's a lender here on BP that works for them and advertises for them all the time on BP.  I gave them a shot a few months ago, and after 7 weeks, he couldn't get a simple refinance done.  I had to take the refinance and another property I had under contract to another lender who got both done at the same time in under a month.  The communication was non-existent as well.  There are lots of good nationwide lenders and local banks that service the GA market, but my advice is stay away from MB Financial.  

PM message me if you're considering using them.  I did recently and it didn't go well.  

@Juan Jackson thanks Juan, we have an 800 credit score and have no problem getting loans.  But, having to put 20% down each time is really depleting our capital.  I'm looking to get HM loans, do the repairs, then refi out with our community bank.  They just want at least 20% equity.

I'm looking at using hard money for the first time.  I've reviewed the list list on BP for HM lenders in Atlanta, and frankly the reviews on BP are not that good for many of those companies.  I've come across a number of them with a Google search, but I would like to know if any Atlanta investors are having good luck with HM lenders in Atlanta, and which ones other members would recommend.  Thanks

I got tired of these phone calls as well.  I call it interviewing for the circus.  Now I video every house (full tour narrating) and post it on YouTube.  I put that link in all the ads, and my voicemail reads something like yours.  Except I tell them to watch the video first before leaving a message, your credit score must be X, no self employment, no smoking, no pets, no section 8, (I have a few other qualifications I list and the message, then the message says) if you think you meet all the criteria and have watched the video, then please leave a message and I'll be happy to call you back.  Man, what a difference!  My voice mails dropped off substantially!  That weeded out all of the tire kickers, and non qualified applicants for me.  It works like a charm, and I get great tenants now.

Glad I read all the reviews about this company.  I was going to use them for my next purchase.  Thanks for posting.

@Sean Blomquist It does thanks for the info.  It's a good strategy to conserve cash.