Landlord Friendly Financing? Seriously?

dennisfassett.comThis is pretty amazing.

I was looking around for some new ideas on how to finance additional rental properties, and I happened to find something that was pretty surprising…..

…… that a monster-sized hedge fund – BLACKSTONE no less – has started offering financing specifically focused on rental property owners.

Yeah. To say I was shocked was an understatement.

I mean, Blackstone has been the bad guy as they hoovered up all the good deals in many areas over the last several years.

But that has apparently changed.

I have never been very fond of conventional lenders. They don’t like rental properties, and back before and during the crash they kept making it more and more difficult to get their approval.

In fact, the process to get my 10th conforming mortgage took SIX MONTHS to accomplish. Partially due to the broker’s incompetence, but most of it was due to the lender changing he rules of the game as the game was being played.

So the fact that an organization is now landlord friendly is a great thing.

I’ve included the text from the press release below, and there’s a link to their lending site as well if you’d like to get more information.

Let me know how it goes if you decide to reach out to them.

Here’s the press release from Blackstone….

Bad Tenants Suck

dennisfassett.comThis is Captain Obvious reporting!

Seriously – I really like being a rental property owner. And I really like most of my tenants too.

But occasionally I get some clown who decides that they’re special and they don’t have to play by the rules anymore.

Like paying rent on time.

So I like to deal with these people quickly, because if I don’t they get worse.

So if you have been following me for any length of time you know that I’m being a fan of cleaning up my rent roll a regular basis.

I find the best time to do that is in the spring. And I consider June 1 to be “last call” for rent roll spring cleaning.

Why? Because the best renters wait until the summer to move, so they don’t have to deal with the kids being in school or changing school districts.

Housing Inventory – Rising?

bubble1Interesting article out of Southern California recently.

They’re looking for housing inventories to rise. And it some cases it looks like it’s already starting to happen.

One person wrote from San Diego:

“Lots of houses are coming on the market now where I live in San Diego. The most I’ve seen in years but they are all listed at the highest prices I’ve seen since the crash. The prices are not dropping one bit either, but nobody is buying them anymore. They just sit on the market for a few weeks then the seller removes them.”

I find this interesting because California is often times the canary in the coal mine. That is, stuff happens first there and moves east.

Choose Wisely! Because Location Matters.

choose-wisleyI wrapped up the sale of one of my apartment buildings a couple of weeks ago. Part of that process involved meeting with one of the city building inspectors, as I was in the middle of my second bi-annual rental property inspection per their ordinance when we closed.

The process went smoothly, and I was (again) pleasantly surprised by how down to earth and practical the building department was to deal with over the term of my ownership.

And as I thought about it, i realized that pretty much all of my interactions with the building departments in cities where I own rental properties have been good to great. (I say pretty much, because because I have one rental that was a flip that I couldn’t sell, and I wouldn’t have bought a long-term hold there.) And that has really helped make my ownership experience a pleasant (and profitable) one.

As I thought about it some more, I also realized that this wasn’t by accident.

Pay MORE. Buy BETTER. Buy FEWER.

I just got into it AGAIN on my facebook page (shameless plug: facebook.com/CashFlowMercenary) with someone else pitching cheap-ass properties in bad areas with Section 8 tenants as the Holy Grail for buy and hold investors. He came on my page with an unsolicited pitch for his properties, and then really got his panties in a bunch when I pressed him on his ROI “projections”.

It’s an epidemic I think. More than just the flavor of the month this time. And I just finished doing battle with a bunch of clowns doing the same thing with Detroit properties here in my area.

I don’t know what’s wrong with me. It seems that all these other investors out there know the secret to finding magic properties that are really cheap because they’re in bad areas, that Section 8 tenants love and stay in forever so they don’t have vacancies, and that are so solid and well cared for buy their Section 8 tenants that they never need repairs and maintenance.

See what I mean? Magic. Pure and simple.