All Forum Posts by: Wendell De Guzman

Josh McCullough, do you invoice the tenant or send him a BILL?
Do so and include the late fee in there.

Also, if your tenant is late once or twice, then forgive the late fee. However, if it's an on-going problem (they are late every month), be strict about getting the late fees paid.

Jane Donaldson, hard money is one option. Another one is private money. It takes a lot longer to find the second one. But if the deal is really good, the money always follows.

Actually, there is a third option: find credit partners.
You can put up an LLC with a partner with 700 credit score.
This LLC through the credit partner can borrow up to $150K as a line of credit.

You can put up another LLC with another credit partner and get another $150K. Hence, you have $300K that you need.

I suggest you partner with a builder or someone who has done what you want to do.

Based on what you described, the opportunity seems to make sense but it only makes sense if you have the right team to take advantage of it.

Thank you Ann Bellamy for your insights and suggestions.

Kenneth, I still do real estate deals. But lending on the side makes a lot of sense to me since I usually wholesale most of my deals anyway. I don't like renovating houses.

Carlos Nunez,

To make money from these, you need to control these properties with an option or purchase contract.

Then you need to find buyers for them.

I suggest you focus on just wholesaling these properties first.

Christopher McMath,

Welcome to BP. I am based in Downers Grove.
What are your investment goals?
What do you want to focus on?
What help do you need in your real estate investing/business?

Perry Rosenbloom, good job marketing the property to get a tenant. I hope you've prescreened the tenant very well to avoid problems down the road. I have a Tenant Screening Point System that works wonders.

Also, I suggest getting the tenant give you Check Writer Authorization so you can write a check out of the tenant's account automatically so you will not wait for his rent check to come.

There is always a buyer.
You need to market the property better to find the right buyer who has the downpayment and can get the financing.

How are you marketing the condos right now?

Also, you can talk to mortgage brokers and see who among them have prequalified buyers who can afford your condo.

Annette, if you have a property like this in Columbus, Loveland or Forest Park, Ohio - I will be interested.

Bill Wilson,

I would tread carefully. It's not cheap enough to wholesale it to another investor.

Yes. Negotiate and get it as low as possible (say $460K).

Then put a 90-day option to buy on it with a $100 option fee (with a right to extend for another 90 days...giving you essentially 6 months to tie up the property).

Market it like crazy (put it in the MLS, put bandit signs, Craigslist, etc.) to sell it to an end buyer who is prequalified for a mortgage for $610K (lower end for a quick sale).

Equity partners won't work for a mediocre deal like this.
If it's not cheap enough to wholesale, it's not cheap enough to partner on.

Even if it's not cheap enough...you can still make money on it.
Let me know how this deal goes.

Mike Poulliott, how much is the rent? How much is the house worth? It might still be a good deal if the rent is substantial enough. Also, it depends on what you can negotiate with the seller and lastly, it depends on your exit strategy also.

Of course, in all of these, you have to do your due diligence.
Let's say the rent is $1,000 a month.
Seller is asking - you pay the $10K taxes in arrears plus $35K.
So total asking price is $45K.
I would negotiate with the seller to see if she will accept an all cash offer of $20K. Out of the $20K, you pay the $10K tax arrears and $10K goes to her.

Then, wholesale the deal for $30K to a landlord who would love $1K/month rent. Even at a 50% expense ratio, the landlord will make $500/mo or a 20% CCR.

You on the other hand walks away with $10K cash and you get in the deal with no money down.