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Doing a Deal with Diamond Equity
Here’s What I’m Buying:
- Retail Strip or Shopping Center 10,000-250,000 Sq. Ft.
- Industrial or Flex Warehouse 20,000 – 250,000 Sq. Ft.
Here’s How to Passively Invest:
- Earn 2 Points & 10% Interest as a Private Lender on MY Deals.
The Wealth of Wisdom
“Wisdom is more profitable than silver, and her wages are better than gold” -Proverbs 3:14
This week’s Wealth of Wisdom is the process of Cash for Keys. Personally, I hate evictions. They usually take 3-4 months where I am not collecting rent. So if I have a $1,500 per month rental, I’m out $4,500-$6,000 in lost rent while going through the eviction. I view this as my budget for the Cash I’m willing to go up to in exchange for the keys – the tenant leaving immediately.
Of course I would start with less and say to the tenant, on the spot, in person, “Listen, I’m going to the attorney’s office when I leave here and filing the eviction. it’s going to run me about $500. If you can be out by Friday (or whenever a few days later would be), I’ll give you that money instead. Can you be out by then?”
It’s a negotiation around the amount of money and how fast they can leave. The more time you give them to get out, the less likely that they will ever leave. I never give more than 7 days before filing the eviction if they haven’t left.
My friend, Mark Ainley runs GC Realty, a volume property manager serving the greater Chicagoland region. He recently wrote a more detailed explanation of the process. You can read that post here.
Recent Podcast Episodes – Private Money Lending with Dan Breslin
My dad is the reason I am here as President running Diamond Equity Investments. He is also a one of my private lenders. On this podcast we discuss both the early days of Diamond Equity and his experience as a private lender.
