All Forum Posts by: Ursula B.

Not sure that you'll find a lender that will do 100% LTV. I've found 75%, but my property is free and clear so it works. If you only have 25% equity, there may be little to cash out. Also, some require seasoning of different periods to use actual value. Depending on bank requirements, they may only use the purchase price as a starting point.

Good luck to you!

I give my tenants erentpayment as an option and they seem to like it.  One kept sending rent by mail until the mail didn't reach me once and I had to charge a late fee. So now they all use it.  I've been eating the full $3 per transaction fee since I was testing it and wanted to encourage them to use it.  I may change that to a split when the tenants turn over.  But even at $3 each, I know when the rent is paid, and it's usually in my bank account 4 business days later. No checking the mailbox, snapping pictures of checks or going to the bank for me. I love it.

@Wayne Brooks  Haven't verified title yet, as they were not able to produce a completed contract that I could forward to my attorney until now.  Contract calls for free and clear, general warranty deed.  My attorney doesn't fool around when it comes to titles, so if they cannot produce one free and clear with a general warranty deed she will not close it. I know some folks advocate for doing their own title searches, but I prefer to let the attorney handle it.

The $6K foreclosure is just what I can gather from Realist.  I'm sure there's so much more to the story.

Having a license significantly expands the number of tools available to help you in your business.  Earning a commission on the buy and saving a commission on the sell is also a big plus.  Having said that, with a license comes much responsibility.  You are held to a higher standard and 'knew or should have known' always applies when you've made a misstep.  Nevertheless, I'd say go for it.

Thanks for the replies everyone.  Sorry I'm late in responding, but I haven't been getting notification emails like I used to. The seller accepted the lower priced second offer.

@Brian Stephens I called them motivated because it's owned by the HOA. They need cash on the books. From what I can tell they took over this unit for $6K in fees, so a $21K deal is money in the bank for them. It also needs about $7K to make it rent ready, and I don't think they want to dish it out.

@Simon Campbell @Darrell Shepherd The windows are in pretty bad shape - appear to be original to the unit. Being painted shut was just a bonus. They gotta go. It's a first floor condo unit, so there's only three windows that need to be replaced. The local vinyl replacement window store charges $249 each, including installation. I've bought 3 sets of windows from them in the past for various projects. And I always make my offers subject to HOA pre-approval of the windows I select. I don't need any surprises after closing. I also got them to repair a leak from the second floor unit AND fix the ceiling in the first floor unit. So the reduced offer and the fixed ceiling saved me about $2K.

The inspection was done during the first offer, but I did allow another 2-week due diligence period in the second offer. Awaiting the bid from my contractor.  Took us so long to get here that I'm kinda over it.  I'll keep you posted.

Agree, add them all to the lease and they are jointly and severely liable for the terms of the lease.

@Patrick Hepner Are they not allowing inspections, or are they not allowing an inspection contingency?  There's a difference and I can't tell from your post if it's the former or latter.  The banks I've dealt with have allowed a due diligence period, meaning do whatever you'd like during that time, including an inspection, but you have to decide during that period if you're going to move forward or not.  If that period expires, you're all in and cannot back out because of an inspection.  Some will say you can do an inspection but cannot turn on the water.  Others have had the property de-winterized so that a full inspection can be performed. 

You're paying for power tools now, how do you know he's not buying materials for another job on your dime?  I've had some growing pains myself, but now only deal with a contractor that can provide a line-item estimate before starting, can front the materials and labor and requires no payment from me until the work is complete to my satisfaction.  I may pay a little more for the privilege, but I have no issues with subcontractors, shoddy work or overruns.  I'd suggest you run as fast as you can from this contractor - after you close down your store account first, of course.

I'd be hesitant to present a 'cash' offer that is dependent upon someone else providing the funding.  The only time I present an offer as cash that I actually intend to finance is if I have the actual funds to cover it should the financing fall through.

Screen, screen, screen.  Learn the red flags of problem tenants and take heed!  Maintain reserves so that you don't have to accept the first person that walks through the door.  My motto, which has been tried and true, is I'd rather have a vacant property than a bad tenant.