All Forum Posts by: Vincent Plant

@Steve DellaPelle Can you do me a favor and break out the math on that?

Hello, 

I just picked up a rental income property about 2 months ago. Now I'm looking for another. I heard about cash out refinancing the other day and I want to see if its worth it to think about on my current rental. 

Heres what I got: 

I purchased this property at $73,250 two months ago and put down over 30% and used a conventional mortgage amount of $50,000. 

It appraised at $75K during the sale. 

Since I have taken possession I put in all new carpets and it is now occupied by tenants and is cash flowing $650/month. 

Of course I still owe $50K on the property. 

Experts..... is a cash out refi a viable option for me to collect cash to put into another property? Im all ears. 

I just picked up my first rental income property. I am in the process of having it rented out and have a tenant scheduled to move in within the next few weeks. 

If everything goes the way it should (the tenant pays the rent with no issues and no surprise repairs come up) I will be on track to begin cash flowing $650/month. 

What would you suggest is the best thing to do with this income? I plan to stash 10% into a side account for any issues that arise. But what is the smartest thing to do with the extra cash? Put it back down on the on principal? Pay down other debts? Use it for the shopping bill? 

I intend to purchase another property as well in the not so far future so perhaps stashing the money to plan ahead for this? Im all ears...  

I am in the process of leasing out a rental unit. Its a low income neighborhood and the tenant had some financial hardships in the past which I have agreed to overlook in exchange for last month's rent up front (rather than collecting just the first month and a security deposit). 

The tenant has agreed but asked for an additional 15 days before they move in to get it all together. I am considering agreeing to this provided they submit a nonrefundable payment of $1,000 (two month's mortgage payments) right now up front to hold the property in case they end up bailing and the property goes vacant for several weeks. I know this is not a traditional method but it works for me because to collect that money up front would pay for my holding costs for 2 months regardless of wether or not they come up with the rest.  

I'm just trying to think through the best way to collect this "nonrefundable fee" in the safest way possible. Since they won't actually be signing a lease until the move in date, what would be the best possible way to write up the transfer of this fee and still be protected on all sides to be able to keep it if they decide to back out before giving the rest of the funds needed to move in (which of course I don't anticipate happening). 

I am in the process of leasing my first rental property. Its a low income property so of course there are a lot of people applying with "less than satisfying" applications and understand that as a land lord for this type of property I will have to overlook some things.  I have received several applications as of yet but I do like one. The credit is bad and there is a prior eviction but I have talked with her and she was very upfront with everything  and explained pretty thoroughly and it seems their situation is better now. 

My ultimate goal is to maybe market the property for another week to see if I can get something better, and if nothing comes through then see if I can work it out with this family. 

How would you suggest prolonging that situation? They paid $60 ($30 each) and applied and are expecting a decision asap. I want to wait it out and use them as a plan B if nothing else comes along in the next few days. What would be the best way to handle this without getting into deep water? 

I am closing on my very first rental income property in about 2 weeks. Now, I believe that I got a great deal, I can rent it out and create a great amount of cash flow I just want to be aware of any pitfalls. The property is not in a terrible area but it definitely isn't a great neighborhood. Its going to be low income tenants for sure. 

Any advice on setting up the lease, screen tenants, policies to enforce etc... to ensure that I am protecting my investment? 

Thanks!

Real Estate license..... Check

Access to state licensed forms/contracts.... Check

Access to the MLS..... Check

A well rounded knowledge of how a transaction works.... Check

Ready to start wholesaling..... What else do I need? 

From what I understand, I want to go with mailers to probate lists and wait for the calls to roll in. So, my question is, is there a package deal where you can purchase mailing material? Letter templates? A web site to get your leads to mail to? Am I missing anything else? 

One big thing I don't understand about wholesaling is how to actually get a deal locked up? For example, you find a seller that is agreeing to your terms, now you want to write up the agreement of sale. Now, where I come from, an agreement of sale is worthless unless there is no Earnest money deposit involved, is this my money I'm putting up? When the seller wants to see proof of funds, or a pre approval letter to go along with our sales contract (which is a must have in any deal I've ever been involved in) how am I to obtain this if I don't actually have the funds on hand to see the sale through? 

What is the best way to seek out and find opportunities to become a silent partner in a privately owned business? I'm looking for the perfect situation to just dump a chunk of capital into a business and let my money go to work for me and in return collect a percentage of the profit on said business. 

Any suggestions? 

John,

Could you explain in more detail how that works? 

Are you referring to using a renovation loan? Pay $30k and some change to obtain the loan. The loan covers the purchase of the home AND renovations, and then sell the home to cover the loan, and keep the profit? 

Is this similar to a 203k loan? 

In my area this seems unheard of. No lender will touch a property that needs to be rehabbed, and lender will give you a loan on a property you do not intend to occupy unless you have 6 month of payments worth reserved in the bank. And your rate is sky high, 

Thoughts? 

So I have a decent amount of cash stock piled but I feel it isn't enough to turn into a decent investment. I hear all of the time people on here saying they used $30-$40k to start up however in my market the only thing your buying for that amount Is a mobile home on a leased lot or a complete tear down in a sketchy part of town. Then of course you need funds for rehabbing and everything else. How, how, how do you get money to put into a deal??? I'm a licensed agent so I know for sure that anything that needs work is unobtainable using a mortgage lender but what other ways are there? It's been explained to me about hard lending and cashing out from appraisals after you rehab but I just can't seem to comprehend those techniques.