Forum Replies Created
- mic84t wrote:kylermrice wrote:Curious is to what area code your house is in, hope its not 64130.
NO, it is 64050. Independence. just a few blocks from harry trumans house.
If it matters just wanted to validate that area. If you are anywhere near the Truman House, your in good shape. Very nice area and can bring some really nice rents..
John
I am glad to hear that some of these companies/individual’s will be brought to justice. I can only hope that enough people will come forward to make the verdict that much easier.
I unfortunately have a client that was misled by an organization and it is a clear case of fraud. I have done everything but pay him, to report it to the FBI and try and get something done about it. He lives in Canada and just does not have faith that it will go anywhere. I tried to explain to him that they may not investigate, but if they get enough complaints about the same company/individual, they will without question, investigate it.
I had a PTA meeting with my 11 year old, and one of her classmates mother, is an actual FBI agent. We were talking about the FBI, as my 11 year old has dreams of being an agent. As my 11 year old ran out of questions and loss focus, we discussed what it was we did for a living. We talked about RE and more specifically what can be done with suspicion’s of fraud or any other questionable activities. She made if very clear, the more complaints of being ripped off made directly to the FBI, about any one company or individual, they will investigate it. The problem as she put it, not enough people complain about it and simply write it off as a lesson learned.
I guess what I am trying to say, is don’t write it off as a lesson learned, there is something that can be done. Will it result in you getting your money back, probably not, but it will put these characters where they belong.
There are too many legitimate companies operating that this does not have to be the norm, the more of the scam artists that get locked up the better. It will leave the legitimate companies standing, and give all investors the confidence in spending their money overseas or even locally.
I cannot speak as an attorney, nor am I an employee of the US Dept of Justice, but I have to bet that there is an agreement with Australian authorities, that if the FBI wants a resident of Australia, and they have a legitimate reason for wanting that resident, Australia will see to it they are given that opportunity. It would not be the first time the FBI, has made an arrest outside of the borders.
John
My 2c. I have never heard of this outfit either, but I’m sure with some DD, it will be easy to find out about them.
I am always concerned with those companies that charge an upfront fee. This almost always means they are “brokering deals” and can never be 100% positive the properties are still available. Many of the “large” turn-key companies have multiple brokers in place, thus these properties can get sold very quickly. The upfront fee ensures they make something for their perceived effort. They offer a “refund”, by just finding you another property, that they can push on you. There would be no reason at all for the “owner” of a property to charge you an upfront fee to buy his/her property, just would not make a lot of sense for them to do that.
I always recommend that any buyer, should be buying from the “owner” or an agent/broker representing the owner. This information is fairly easy to obtain, as most US counties have owner information on their websites. There are states that do not disclose owner information, but you can pay a small fee to several websites that will give you this information. I would be happy to give you those websites if your interested, I would post them on here, but I’m not sure if the mods would get upset.
John
jayhinrichs wrote:John,You can go on line and buy cruise certificates for next to nothing. I bought 20 5 day cruises out of New Oreleans for something like 2500 bucks. The person you give the cruise cert. just pays tax's, but its a nice fancy folder with big picture of the ship, and let me tell you your demographic loves those booze cruises out of Oreleans.
I use them here in the states for Open house gifts for realtors when I am opening up one of my new constructions for the first time. Let me tell you it works.
Now with tenants it will be interesting to see how that goes…. check it out, its something a little more tangable then airline tickets and a hotel. Alot of these tenants especially sec 8 may have never been on an airplane before,,,,, And Aussies I am not kidding. And many of these tenants will live and die within 10 square miles of these homes and maybe take one or two trips more than 100 miles in their entire lifetime.
I learned these little factiods from the used car dealers in the towns I made hard money loans in. I always wondered how the heck they can sell these cars with little down and no credit….. Answer there car never moves more than those 10 square miles and when they don't pay they can find it realitivily easy and reposses it.
I am going to try your approach with the cruise certs. as our inventory is within 3 to 5 hours of Orleans or Cape Canavral…
Lets compare notes.
In addition the sellers of these certs. will give you big poster boards and brochures included…. I use them in the Open houses when the agents walk in to drop their card for the drawing there is a nice big 2X4 poster with the big ship.
Let me know what you think good job on being creative.
jay,
I appreciate the comments.
Definitely let’s see how these programs work for each other. I will look into the cruise idea, I guess I never thought of it since I don’t like cruises myself. I am more of the guy that gets in the car and drives until I’m tired…hehe.
I will always be tinkering with this program to find what works out the best. So far I am pleased with the results…it’s going to be interesting to see how many of those tenants actually collect their prize..I hope all of them!!
John
jayhinrichs wrote:Buy the IRS lien and foreclose this seller out. And or buy the mortgage make a deal with IRS at same time and foreclose the seller out.best way to handle jerky sellers
JLH
JLH,
It’s something we have considered, but in talking with our attorney’s, they advised against it. The seller could immediately file for bankruptcy protection and tie us up in a legal fight for years, and really making this deal go sour. This seller has more business’ than I do clothes it seems, I’m beginning to think that he is in a world of trouble, I think the IRS is ready to push it all the way.
It seems that the realistic chance of purchasing this building is quickly fading. What a bummer, I wanted this building in the worst way.
John
************UPDATE**********************
So the initial mailing of 114 letters went out to the tenants on the 2nd of January.
To date:
18 New Leases to officially enroll in the Rental Rewards Program, very happy with this many results this early. 8 of these leases were ready to expire within the next 90 days, so I’m very happy with that.
I am expecting at least a dozen more by the end of the month, fingers crossed.
I have had around two dozen say they are not interested at this point, but as their lease matures (most of these tenants were less than 4 months into their lease) they would consider it.
Overall and considering it’s only been about 2 weeks, I’m happy to this point.
If everyone is interested in how this turns out, I will update again in a few weeks.
John
engelo,
I appreciate the feedback. I think that’s a great idea, keeps them focused on the prize. I will come up with something and run it by the owners and see how they feel.
Thanks Again!
John
jayhinrichs wrote:Sewer is one of the biggest problems we encounter in older homes with tree lined streets and yards.And since every home in our program I own, Its the first thing I do.
If there is not a PVC riser indicating new to newer sewer line. I put in a new sewer line from the st. to the house as well as repipe the whole house in pex. Sewer line runs 1500 to 3k… Although here in Portland OR you will pay double to triple.
Then unless the heating and airconiditoning is new or next to knew and because I own and have to maintain these I replace with new and the 10 year warrenties and I always use the right tech's for these jobs. Like Alex rather pay a little more and get it done right and if there is a problem the tech comes back on their nickel.
Same with the Roof if its over ten years old I reroof.
the real issues I dealt with as a hard money lender to literally 1000 plus clients was their turn key operator cutting corners and spending far too much money on cosmetics and not enough on the mechanical and critical systems.
The turn key guy is selling a pretty looking house. Some one who is building rental portfolio is looking for Function and limiting service calls… As KC says service calls kill you.
And PM business is entitled to mark up on service calls other wise pretty tough to stay in business.
Jay,
Sounds like you have some of the same issues in Oregon as we do in KC, when it comes to sewer lines. We have a huge tree root issue, and you constantly have to be on the lookout for signs of trouble.
I agree with you, that most turn key operators concentrate on the cosmetics, and don’t pay enough attention to the core of the property, does the end consumer absolutely no good. I won’t mention any names, but I once visited a “turn key” home, from a competitor, and saw their house. It looked amazing, but I questioned the furnace not being replaced, as it had the original installation sticker dated in 1959. Their response to me was, ” we had our technician check it out, and everything is fine with it”. I was a bit taken back with this, as they were selling this property for almost 45K!
I don’t have an issue with PM’s taking a markup, its the amount of the markup I have a problem with. I have seen 100% markups, and even some a little more than that. That’s when it becomes nothing more than taking advantage of a client.
John
Alex SC wrote:GreaterKCHomes wrote:CheevesFinancial wrote:I had to stop reading once you said you can get a central 2 ton AC system for $600 – $800. I do my own rehab work thru my general contractors license. I have a straight source with AC vendors as all contractors do. I have never heard of a central AC system (2 tons nonetheless) for $800… Goodman, RHEEM, which many believe are generic brands of TRANE, albeit great brands run $2,200 for a 2 ton system.Now if you are just talking about an AC condenser (fan unit that sits outside), a 2 ton still costs about $800 in the box…NOT including labor…NOT including freion charge (7-9 pounds).
There is not an AC technician in the world that would do a 2 ton for $600-$800.
Wait wait…sorry I just re-read your post…you said the total amount is $1,300 to $1,500 for install of all-inclusive 2 ton system. Still that is only about 60% of realistic pricing….what is the SEER rating. We are required to use 14 SEER. Keep in mind, property managers charge an average of 20% on top of invoice.
SOrry, I might have jumped the gun..I'm hungover from NYE last night!
, I would imagine the cost difference is probably associated with location. I have heard A/C condensers on the west coast can be as much as triple what we pay for them here, I have never confirmed that other than speaking with my clients who live there. I just purchased a 2 Ton A/C unit last week for one of our properties, and the invoice amount was $650, give or take. I have not cofirmed this to be 100% accurate, but I know the Feds have established a minimum SEER rating on new A/C units, and I believe that to be 13 SEER. I will confirm this with my HVAC tech, but I seem to remember him telling me that. No problems at all, I am still recovering from NYE, excellent prime rib dinner and open bar…OUCH!
Hope everyone has a profitable 2012! John
Wow here is my area just put a new unit top of the line 10 year warranty on my own personal house. Which is a 3 bed room 2 bath .No not a typical USA castle , just conformable cost me $4500 but did not paying for 10 year warranty. Most homes it cost me $2800 to tops $4100. Sure expensive but worth paying for long term and warranty on Ac units in the south. I also don't mind paying for the top guys. NO Handy men or cheap guys when it comes to Ac units…
John , And Cheeves..This is opportunity for us to all meet.John I know I am calling you tues about 3 pm . Cheeves working on my trip down that way. I am seeing us all create our own network , Along with Jay.
Setting up a network where international clients can find and work with individuals with in our own net work. Where every thing check outs and every one is one the same page…I always felt that no one should step foot in some one else s back yard. To be an expert they should be buy and sell from there own yard. I am already meeting with a two top teams from Memphis, and possible Indianapolis. Food for thought..
No hang over here was in bed by 930 that night..woke up to see the ball drop then a few calls, and emails then back to bed..
Lets speak tues all of us..
alex
[email protected]email for best time and number that we maybe we can all just conference call…
Alex,
Looking forward to our phone call on Tuesday.
Would be curious on what the going labor rate for licensed HVAC techs in your area?
We just put in a complete HVAC system, with a 3 ton A/C and 15KW electric air handler, pulled permits and all of that, and my bill was $2975. Just curious on how much of a price difference everyone pays for basically the same equipment. I have not put in a gas system in over a year, other than replacements, but typically electric air handlers are around 20-30% more than gas, as we have to purchase the heat strips as well.
John
CheevesFinancial wrote:I had to stop reading once you said you can get a central 2 ton AC system for $600 – $800. I do my own rehab work thru my general contractors license. I have a straight source with AC vendors as all contractors do. I have never heard of a central AC system (2 tons nonetheless) for $800… Goodman, RHEEM, which many believe are generic brands of TRANE, albeit great brands run $2,200 for a 2 ton system.Now if you are just talking about an AC condenser (fan unit that sits outside), a 2 ton still costs about $800 in the box…NOT including labor…NOT including freion charge (7-9 pounds).
There is not an AC technician in the world that would do a 2 ton for $600-$800.
Wait wait…sorry I just re-read your post…you said the total amount is $1,300 to $1,500 for install of all-inclusive 2 ton system. Still that is only about 60% of realistic pricing….what is the SEER rating. We are required to use 14 SEER. Keep in mind, property managers charge an average of 20% on top of invoice.
SOrry, I might have jumped the gun..I'm hungover from NYE last night!
,
I would imagine the cost difference is probably associated with location. I have heard A/C condensers on the west coast can be as much as triple what we pay for them here, I have never confirmed that other than speaking with my clients who live there.
I just purchased a 2 Ton A/C unit last week for one of our properties, and the invoice amount was $650, give or take.
I have not cofirmed this to be 100% accurate, but I know the Feds have established a minimum SEER rating on new A/C units, and I believe that to be 13 SEER. I will confirm this with my HVAC tech, but I seem to remember him telling me that.
No problems at all, I am still recovering from NYE, excellent prime rib dinner and open bar…OUCH!
Hope everyone has a profitable 2012!
John
emma171 wrote:Have to step in a bit here….. I completely concur with making sure you know your bottom line costs … but you also have to be VERY wary on where/what you are buying…..and as John says, please adjust for your market ie:A house under 5 years old in Atlanta is likely to still be under builders warranty for systems, it will be over 2000 sq ft and have at LEAST 2 x 4 tonne or 5 tonne HVAC units… In Vegas, you are hiring a crane to roof mount your compressor…. so caveat caveat….
Rewiring on a young house? … get it certified…. on an old house… HECK YES… but just get an electrical inspection… might save repulling lines unnecessarily.. .
Okay – have to say a 2 ton unit won’t cut it for anything over even about 1000sq ft SFR (Rough ROUGH rule of thumb I was once quoted was to think 1 ton per 500 sq ft per ton but in Vegas err up a tad – adjust for construction, ceiling height and insulation). Mind you KC doesn’t hit 120 degrees!.. Also I am sure you are quoting ground mounted not roof mounted – or are you quoting swamp coolers..? (roof mounts you have to hire a crane) and yes, for a 4 ton you should be around $2400 – $2900 universally. But not sure how much crane hire costs in KC but Vegas you are EATING it on hire!—
Then again, sewer lines to repair for a main break shouldn’t be more than $900 with manual labour and licensed plumber with 3′ trench x 4′ deep dug for 10′ back from junction and 3/4 inch standard main water line. Someone charges a lot for digging in KC!
A whole house to paint up to 1700 sq ft 2 tone (semi gloss white trim/neutral walls in eggshell) is only 1k for a single storey including paint. for a 2 storey contingent on sq footage you are looking at no more than $1300 – same price, interior or exterior….
Carpet laying? Flat fee of $350 a house – whole house then choose your carpet per sq ft…. Home Depot and Lowe’s both do whole house install for $79 or $99 for carpet but the ultimate on this is that they will then go and charge 49 cents a sq ft for underlay when you can get it for $50 a bag….. so you learn that one pretty quickly. Tiling – I wouldn’t pay more than $1.10 for labour a sq ft etc.
KC….You are being ripped off on your faucet repairs ; ) …. lol…. $24.86 for the faucet and $15 max to install…
Issues will vary on state on permitting for water heaters but that is where the expense is in NV…. you have to pull a permit and you will eat it on that… we also do 50 gallons. Not sure what your regs are on earthquake straps either in KC.
Your houses must be tiny or units in KC??
I think I can safely say that the big thing is to get receipts, if project management ISN’T included in facilitation, please ask for it to be itemized as a separate amount.
Also find out what the call out fees are ongoing from your property manager and all the misc other things.
Ask HOW MANY UNITS IS YOUR PROPERTY MANAGER MANAGING…. ????
BIG QUESTION.. In Australia they tend to charge 7% of gross and we expect a lot of our managers there…. 7% of probably about $600 a week… not $1000 a month… you do the maths as to how overworked and underpaid your property manager is in the States…… and how many units they would need to manage to make even 30k a year. Scary business model.
IN CONCLUSION – CAVEAT EMPTOR AND GET QUOTES –
It is tough because while John gets it, I get it, and you can read it – ultimately you are in “X” city with your own babies and are going to have to just do your darndest and ask for multiple quotes if you happen to be anywhere other than sitting on our door steps.
We only do property management through the brokerage for our personal clients and it is a fixed cost forever so we aren’t overworked etc but then again, after me I also paid for my Director of Ops specifically to go through the joys of r/e and pm schools and have a lovely broker who got it and “gets it” from the Australian concept because it IS such a biggie. As a US investor for as long as I have been this was always the big gasp and why I self managed all my own properties before… so taking this on and heading down this path was knowing full well that this had to be sorted up front……. the game is to have ONE tenant stay with you for as long as possible…. that isn’t the norm for property managers who have lost track of who even live in half their properties…..
Roll up the sleeves, Get quotes, ask questions, use the figures provided here as a rough, ROUGH yard stick of costs….. BUT IF YOU WANT ACCURATE COSTS…..
Call 3 contractors. Log onto Home Depot – EVERY item is on there…. Look at your receipts……..
… and thank god for forums where you CAN ask questions.
Thanks for the post John – you have a hard job and a very very under appreciated one.
PS Christmas presents are always nice for your tenants….
NO IDEA WHERE IT WAS AS THIS WAS FORWARDED TO ME BUT SOMEONE MENTIONED ABOUT GAS…. Why I love Vegas so much.. I don’t have to pay for any utilities! In Alaska, I had to pay for heating oil. As mentioned, i would cry every year and pay at LEAST 5k a month for heating for my tenants who all loved to leave windows open and crank the heat.. but if you didn’t pay for it… your pipes freeze…if it snows and your tenant leaves a garage door open, you can be screwed… if it is in Vegas, they come home from work and shut the door. Taxes and Insurance. Happy to pay …. nothing more…I LOVE DESERT LANDSCAPING! I will not pay for another heating bill as long as I live. I would do inspections and shut all their windows. I would replace anti skid steps each year, put arctic melt everywhere, rewinterize, replace pipe insulation, melting, freezing, snow removal (even if it is MEANT to be tenant’s responsibility)… it is -38 degrees today in Fairbanks….. positively balmy for this time of the year. I would dread break up….. I hate mowing lawns….lol….
Thank you for your reply..
I should qualify the costs quoted in this particular posting.
When it comes to sewer lines in KC, by local plumbing codes, the sewer lines have to get to a minimum depth of 3′ as quick as possible, due to freeze concerns. In most cases are sewer lines are around 6′ deep, this requires shoring of the walls to meet with OSHA standards. There have been instances where the ditch has collapsed and either seriously injured a plumber or even buried them alive. In homes where there are no basements, the sewer lines will be around 18″ deep, but quickly dive to 3-4′. I have actually seen a sewer line that was 16′ deep!
In KC when it comes to Central Air systems, we calculate usage on 1 ton per 800′ feet, Most HVAC contractors will over size the home by 1/2 ton, to account for our humidity problems here. As a side note, I am very thankful we never reach 120, with our humidity we all would fry. LOL
When it comes to water heaters we have no codes that require the usage of earthquake straps, like the west coast. We are required to pull permits to install them, over the fear of carbon monoxide, but most plumbers do not do this. The most popular size of water heater for most houses and even apartments would be 40 Gal, only when we have a home that is multiple stories or really large in square footage, will you see 50s.
Our turnkey program rarely is used on a very large home, it makes it very expensive to heat. We have alot of these large homes in KC, but I don’t care for them as much as I do the homes in the 1200-1500 square foot range. I am managing a home like this for a new client, the home is around 2200 square feet, and we have the thermostat set at 50 degrees for the winter, and her gas bill is $400 per month.
I agree with everything you mentioned, a PM should have receipts either readily available or accessible online through the software.
I would caution on searching Home Depot or Lowe’s website, the prices listed there, rarely match up to what a contractor will actually pay. My contractors get a 20% discount for simply walking in to Home Depot, due to the volume of business he pushes through there. The skilled labor contractors, will almost exclusively use wholesale outlets to purchase their material, and pay anywhere from 30-45% of what the average consumer would pay at the Big Box Retailers. It’s definitely a good checking point, to keep your contractor honest.Wow! I wish I could find even a handyman to work for $15 per hour, let alone a plumber. When we are rehabbing a home, I typically use one certain brand of faucet. My background was of a plumber, and I learned the hard way of using cheap faucets. I will pay a premium for a faucet that I know I can get 10-15 years out of, versus paying half as much, and getting 2-3 years out of, if your lucky.
I appreciate your compliments, it is always nice to hear from those that fully understand this business and just how challenging it can be at times. I pride myself on doing the very best possible job for my clients, and have been known to take it personally.
Wishing Everyone A Very Profitable 2012!!!
John
lawsjs wrote:John – thanks for the insight. I have issues with the Taliban on several fronts, not the least of which is that. No-one will ever understand how frustrating that simple thing has been for me – and seriously expensive.Alex, not insulting the US per se, just the people that work in ridiculous systems day after day and know they are stupid but keep on with them. Like notaries, banks and USPS are trying to send me to the looney bin.
Your welcome…
Yea the cowards that are the taliban, have really destroyed freedoms all across the globe, not just here in the US. Not going to get political, but it really changed what Americans have taken for granted for so many decades.
Have a great New Year!
John
Alex SC wrote:GreaterKCHomes wrote:I get a call from one of my tenants at 3:17am on Christmas morning, so of course I'm thinking the absolute worst here. She tells me that someone tried to break in by kicking the front door in. So of course I ask her if everyone is alright, and her response was "We are fine, he's not". She tells me that she heard someone at the door, and grabbed a baseball bat, and met him coming through the door. She tells me there is significant blood on the wall and carpet. So of course I ask her does she need me to wake up my maintenance man and get the door secured, she says no it will be fine until later on that morning. As it turns out, this guy was not trying to break in to steal things, he had been out partying and simply went to the wrong house. He lives about 3 doors down, and could not figure out why his key was not working. He was not arrested, as the police confirmed his story and he to say the least, was very embarrassed by the whole scenario. He is paying for all the repairs and carpet cleaning, which I am grateful that I don't have to take him to court. He actually is a pretty nice guy, I went over and talked to him, and he must of apologized about 20 times. I got a pretty good laugh out of this, which I needed after nearly having a heart attack with a 3AM call…. JohnJohn 24 hr answering service with a phone that goes directly to our take home cell phone. Helps those 3 am calls. No worries I got a call a while back.Yes all tenants get my number( for emergency purposes ( I am braver then most) .Tenant was drunk in her living room, Texting me . She could not find her keys , and could not lock her door. Yes she was in her house and could not find her keys because she left them in the door. Me being a fool decided to go and help her out and find the keys.
So yes all in all always good laughs in this business but also alot of stress with management
Lets Chat today want to ask a question about the peak guys
Thanks
Alexi hear you..i really do not get alot of these calls, this is probably the 1st one in 6 months at least.
I have to say though, have never been drunk texted from a tenant, guess it will happen some day.jbrogz wrote:So it seems Santa doesnt come through the chimney anymore. Haha
Apparently not!
jayhinrichs wrote:been there done that many times with uncleWhy is your closing agent just telling you about this so far down the track… Did the lien just pop up or has it been there a while.
One thing I like about title insurance and closings on the West Coast the title plants are all digital and you have instant access to normal title abstract items. I can call customer service and on the phone in 5 mintues get a date down on any property, info including Mortgages, liens, IRS, State, judgements, and anything else that will show up in a title commitment. It is the only way you can be in the courthouse steps foreclosure buying business, real time data in minutes not waiting for a call after the fact.
Anyway thats just a regional difference.
Couple work arounds for your consideration.
If there is a mortgage lodged against this property 99.9% chance the IRS lien is recorded junior or after the mortgage as no lender in their right mind would put a loan on a property junior to an IRS lien or any other lien for that matter.
And if Mr. Seller has this big of lien he probably has a lot of other issues.
so you can.
1. contact IRS and tell them there is no equity in the building and please release the lien, this can and does happen if they figure there is nothing to get. Do not just accept the fact that the lien is there and there is nothing you can do.
2. Buy the underlying debt and then foreclose it out. Once your lender in possession you have further strength to work with IRS and they have to either buy the property from you at your debt amount or release the lien. They have 6 months to do this.
3. Be the purchaser of the property at the trustee's sale, thats if you can get the current Mortgage holder to prosecute the foreclosure, once you recieve title via trustee's deed or whatever deed they use in your neck of the woods. You can just lay low for 6 months. The lien automatically sunsets at 6 months from the Trustee's deed. And your title co will be able to write you a clean policy and you move forward. In the unlikely event of a Water Landing and the IRS steps in and redeems they have to pay you all your money back plus statitory interest rates. BUT they do not have to pay you for any work you may have done on the property in the 6 month holding period, any utilities tax's etc.
I have had probably 25 plus deals with IRS liens over the years and most foreclosure investors were afraid of them. That left some really great deals for me. The big issue is most of the buyers were using hard money to buy their props and did not want to wait the 6 months you had to hold the property. On SFR I would go in do the rehab and start marketing it with a close date just after the experation. I only had one property the IRS stepped back into and it was one that I bought for about 30k and was worth 350k it had obvisously a ton of equity. Lady owed Uncle about 120k. We settled it by writing a check to the IRS for 60k and they released the lien. Our deal was still a smokin deal. Lady got out of dodge with Uncle Although she would have been better to just sell the property.
That leads me to one other Major point of how Americans view the current foreclosure mess and their houses.
7 to 10 years ago people loosing houses would do what this lady did. Instead of sell and grab substantial equity they just did not want to lose their houses and tried all sorts of ways to stay. It would get acute 48 hours before the courthouse sale, and thats when we would get a call, Hey I need 25k tomorrow to bring my loan current etc etc. I did hundreds of those and we then turned those folks into our renters. Thats how I amassed 100 plus rentals in Oregon… All foreclosure bail out last minute.
Subsiquently bad people got into the game and the laws have been changed on Pre foreclosure transactions… Still crooks out there violating the laws. However now instead of properties being saved a few days before the sale more are actually going to auction. So not sure who is benefitting. I know we saved a lot of people the upset of having to move out of the house they lived in for years and change schools and because they had a foreclosure it was tough to rent, As Oregon has the lowest vacancy rates in the Nation and the rental market here is really really tight.
Good luck working through this one do not give up just because of this lien. YOu might be able to send Uncle 15k and they will walk something like that.
JLH
I’m pretty sure she was trying to get it worked out with the seller, before contacting me with it. She realizes that there is very little I could do about it, so I would like to think she was showing consideration for my time. She knows how busy I am and she handles about 8-10 closings per month for me right now…
I have done alot of the same things you talk about in the past as well, can’t remember how many liens I have paid off over the years to keep the deal alive. This lien is just way to big for the deal, the seller is going to have to make some consideration if he wants to get this building sold.
From what I understand this seller is a jack of all trades, owns 3-4 business’, none of which are related to each other.
We will make an another attempt to save this building, but so far the seller is being a jerk. Does not want to own up for his responsibility, how sad!
John
I would like to add my 2c on this as well.
I have considerably more admiration for those that have gotten “dirty”. There is no replacement for the knowledge you gain by doing it the real way. I have only listened to one “guru” and that was Carlton Sheets, selling his No Money Down programs. I will admit, I never bought the tapes, I actually found them in an abandoned home! HE-HE. I was amazed at how easy it was for him to make millions doing that…(LOL). It always made me wonder, if it’s really that easy to make millions doing that, why did you stop?
I agree completely with Alex when it comes to switching gears and being an author. I have been asked to deliver a 30 minute speech at an investor club in Oklahoma, I did it one time and quickly realized it was not for me. It probably had alot to do with my stupid fear of speaking in front of a large audience…hehe.
Not speaking for everyone, but I really feel those that are on the ground getting dirty, have an unmatched drive for this business and walking away from it, would probably be comparable to a 15 year vet of the NFL, realizing his career is winding down.
I won’t completely knock the books, because it is a very fast way to learn the very very basics of REI, at least the terminology anyway. They will not teach you real world experiences, as we all pointed out, there is only one way to do that!
Have A Great New Year!
John
worldinvestor wrote:DHCP wrote:That is a good point, WI.It is common in Atlanta for the CAC to be stolen. The property that I'm about to settle, its CAC was also stolen.
I'm interested to hear the post of others about this also.
When you consider that each unit will cost you around $2600 and I believe somewhere Jay posted that within a 5 year timeframe I think it is around 80% chance of aircon unit being stolen.
I am keen to find out if you are sourcing your own properties in Atlanta, buying turn key or getting them rehabbed.
Cheers, WI
What we are doing in KC about this issue is as follows:
We are constructing a 6 x 5 x 5 cinder block wall around the units. We are custom building a rebar door for entry by technicians and so forth. The door is 3/4 rebar, with 1/4″ steel for the frame. We use a mobile welder to construct on the job site. Over the top of the cage if you will, we use 1/4″ steel wire fencing material to make a top, so they can’t simply climb over it. Additionally, we reinforce the cinder blocks that will be used to hold the door on, with concrete, we then set 6″ lag bolts into the concrete to attach the door. Then we lock the door using an industrial size padlock.Keep in mind, you will need to check local ordinances for this construction, as we had to ensure that the emergency disconnect was outside the box, and no more than 6′ off the ground, so that the fire department could get access to it. All we did was extend the power wires to outside the box, and install the emergency disconnect at about 5′.
Total Costs: About $650-700 parts and labor.
Have a great New Year!
John
ads23syd wrote:I'm on a disability support pension for a case of epilepsy I've had since birth and currently living in community housing, I have never had any loans in the past and dont have credit cards. I dont drive and am single with no children at 30yrs old. Am I delusional to think I may get a loan to get my own home?Cheers
If your in the states and you have a FICO score of “0” as in no history, I would say it will probably be a bit challenging. I am not a banker, but I have spent a lot of time talking to various banks about their lending requirements, and to say they have tightened things up, would be a huge understatement.
I would venture a guess though, if you had some CASH to throw at the bank, one of them will do it!
John
thecrest wrote:Hi John.
That’s a very clever strategy.
It converts personal living expenses the tenant can’t claim on tax,
into expenses the landlord can claim.Can someone familiar with Australian Tax Laws tell us if
there are any FBT implications in supplying “free” utilities to a tenant ?What else can the landlord supply for the same effect – groceries, full room n board, gardening services, ironing or housemaid services, ???
It’s good of you to post this info for everyone on the forum, we all benefit.
Hopefully our Australian tax man doesn’t move to plug that hole.Cheers
thecrestThanks for the compliment!
I hope it all works out for you in Australia, hopefully your tax authority will see it the same way!
In the US, there are a few additional things the owner can supply the tenant and take an expense for: furniture is one, I don’t like that one, as typically you will lose with that one, as they will damage the furniture at the very least, and possibly take it with them on move out day. And besides, who really wants to sleep on a bed that someone you do not know also slept on…YUCK!
There is a ton of creative ways to not only get tenants, but take write offs for them, not items that will result in you making any more money, but goes along way if you have a property that you just can’t get rented for whatever reason. For instance in the states, it’s a nightmare to get renters in December, we are competing directly with Christmas, and they will hold out as long as possible in spending money on anything other than rent. It’s definitely not a coincidence, that tenants try to extend that due date for rent in December.
Some tactics I have used in the past with problem houses to get them rented:
Free 32″ LCD TV with 16 Month Lease….Costs the owner around $200 for the TV, picks up an additional 5 months rent!
Season Tickets to the Chiefs/Royals…Costs around $400, gets the owner an additional 3-4 months rent.The main reason I select 16 month agreements, is I can avoid having leases expire in the winter, making it a little easier to rent out for the next tenant.
Have a great New Year!!
lawsjs wrote:DHCP wrote:Usually, here the collection is done electronically (e.g., bank to bank payment)Sounds so simple doesn’t it. In the US you are relying on two of the most backward archaic and simply dreadful systems it has been my misfortune to suffer under. US Post (anyone else’s mail get sent to Austria like mine frequently does?) and the US banking system.
For those that can’t comprehend the backwardness, or isn’t aware of the problem, online banking in the states means logging into your bank and typing in what you want to send and where. Sort of like in Oz. THEN it gets crazy. The bank actually prints out a cheque (and they don’t spell it correctly!) and POSTS it to its recipient. It simply beggars belief they rely on so much paper! And the only way to explain the dominance of US couriers (UPS/FedEx/DHL) is by the poor service of USPS. 10 days it has taken for mail to go from one part of LA to another! FWIW most australians I know would not have written out a cheque for ten years – I threw out all my cheque books at least 5 years ago.
I use a company to organise all my mortgages and liens. I tried to set up direct debits but they don’t happen immediately when I buy new properties, and in any case they STILL require a POSTED CHEQUE. So I get the guy to call me (he is an idiot) if there is any problem. Because of his grasp of the works of international finance and the vagaries of the USPS he called me the day I was about to incur an 8% late fee. At least he called me and didn’t post it, but anyway. I get this guy on the phone and ask him how to get him the money. He needs a cheque. Why can’t I just TT him the money? No-one has ever done done it that way! WTF??? Well, simple mate, I am in Australia and I can’t just post you a cheque, and NO fedex won’t work either – we are quite a distance from your house… Forget it, Ill pay that mortgage from here right now – what are your acc details? No-one had EVER done that before, he didn’t believe it could be done. So I ask him what most people do – he said post cheques. I THEN find out that this guys whole job is to collect cheques from the Post Office and take them to the bank to ‘bank’, and most are from supposed ‘online banking’. All 900 customers per month, some (like me) with multiple mortgages and loans for each individual property. He is one of a team and that is his allocation. Unbelievable, absolutely unbelievable.
I live in hope that one day in the US you will be able to use the net for banking and not just downloading porn.
law,
I feel your pain about our banking and mail delivery systems here in the US.
The sad truth from what I understand with talking to my attorney over a beer, is the fact it will NEVER change.
The way he described it to me was this….All wired transactions are actually sent by the Federal Reserve, they want to know at all times where it’s going and who it’s going to. The bank initiates the transfer at the account holders request, and FR makes it happen.
The reason online banking does not work like a true wired transaction, is because of the Fed Reserve requirement to make this transfer. With literally millions of US online bank accounts, the process would be painfully slow and cause complete chaos within the Federal Reserve.
The reality of this problem can be pinpointed directly back to 9/11, that day changed everything we do in the US considerably.
I would imagine that if a few of you who have NOT established a business in the states, and tried to wire money into a title company for the purchase of a property, probably experienced some very trying moments.
Have a great New Year!!
John
