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Webster doesn't sell their mortgages, they keep them in-house. Their legal team in Waterbury will not approve the offer. Both my atty and the agent has pushed, but the offer is too low and they want to hold out. I am told there are other investors, but it's been sitting and sitting.
That's what a portfolio lender means.
Has litigation commenced? Is so, did defendant(s) file an answer? Mediation hearings/settlement conferences? Who originated the note, Webster? Did you run a mortgage audit on the original paperwork? Discovery in the litigation? Was possession of the note challenged? Engineering/mechanical reports? Comp appeals?
The foreclosure is set for July. It seems, from what information we were able to gather, the bank wants to take ownership. The comps are much higher, about 400k, and that is what's the issue. The house is structurally sound, but needs a complete gut.
Only through your rents. You can try some type of triple N structure but nobody will understand it and they will go rent someone else's units. The MARKET sets the rents. The market doesn't care what your costs are, it still sets the rents. In one of my markets few landlords require security deposits. The result? My units sit vacant longer because I will not rent without a security deposit. But rent + deposit = more $ for renters to come up with on the front end. I'd rather have the vacancy loss and wait for the better renter who can afford rent + security deposit...but this is an election I am making in the face of somewhat adverse market forces. The no deposit crowd ends up with less financially responsible renters and more damage they have to cover at their units on the back end, and higher turn over. So I take a lower cost hit on the front end (by requiring security deposits) and as a general rule end up with better renters who are more stable and stay longer.
Correct in my experience on both points. I am in a transitional year where I am optimizing my portfolio in order to live on primarily the passive incomes from the portfolio. Selling one place to pay off three others and things like that.
Price of acquisition; market rents; demographics; proximity to a major airport (I operate in small markets rather than major metro areas), employers in the area; disposition of state and local law toward landlord/tenant courts; community trends (is the community growing or contracting); availability of competent property management; management cost & structure; ease of travel for me to get there (I own both local and long distance).
I am similar. I've acquired props. with ZERO deposits and I was amazed. I require at least one month deposit, but in some areas (CT/NJ) I require two months. Reason being, it covers the costs better for a potential eviction and clean-up.
Richard, aren't you currently managing a trailer park? I know personally a couple of men who deal almost exclusively in trailer park type properties. They own them now all around the US. They are PRINTING money.
Depends where you are in your career. IF you are overly funded or have good hard money relations with 100 LTV because you are buying discounted, then you only need capital for renovations, carrying costs, and staffing. Once you are capitalized beyond this point for all the properties your business could reasonably buy, fix, and sell, as a self-employed individual, you should invest into a R/E retirement portfolio for cash flow when you retire as you don't have a pension.
Here is an example of a random distressed property that I picked out of my email inbox.
Operating margin is awfully low there. You may have hangups, such as mortgage financing for the buyer, unanticipated repairs/costs, inspections that force you to invest deeper, C/O issues that the buyer may need for financing [not sure how FL works] that force costly repairs not previously accounted, illiquid market forcing longer carrying costs.
What kind of things can you flip for a $150k-$300k profit, and where do you find them?
I doubt you will find much in FL with those numbers unless you're dealing with 50+ unit properties (which may be illiquid in FL). As I once told you, I invested in Jacksonville there. Bought direct from Freddie Mac, two 4-family at $30k a pop. Renovated and sold. 100%+ returns, but boy, what a headache for pennies.
Was it a normal deal through a normal commercial broker? Was it "exclusive" or "off-market" in any way?
Bought as an REO. Sold directly to an investor I know in NY, giving him fully occupancy at an 18% cap.
Lol. Wtf? You're too lazy to send a text message?
Agreed. I only got into it as something to do with my time after I sold my business. Frogger has family money, so he doesn't need to wait. However, I still recommend starting small and grow from there. Get your feet wet, etc. If I was in FL, I'd start in the college towns and look to acquire student multi-families. Pretty safe bet and easy to accumulate.
Cozy is good for rental payments, they also offer tenant screening. However, I prefer to use Transunion's Smart Move for tenant screening. If you have multiple properties, then consider appfolio, but it is not cheap. Several of my PMs use appfolio.
Cozy has a maintenance ticketing system, as does appfolio. One is free, the later is not.
If you have five or six units, you may be able to get a PM's rate down to 6 or 7 percent. Might be worth it so they do not bother you. Cozy is good for you if you just need to collect payment and have a basic support contact system. You may want to setup a call service center for a few bucks a month where your tenants can call in and they will then text or e-mail you the reason for the call or support request. For the properties I am managing directly in NJ and the BX, that is what I do. The ones OOS, I hand off to a PM.
