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Are You Too Lazy to be a Real Estate Investor?

lazy-lion-PDI get emails and calls all the time about people wanting advice on how to invest in real estate. People want to be a Real Estate Investor, and do not know where to begin.

It is sort of flattering, like I have some sort of insider knowledge of the markets or what property or type of asset is the best investment today. But I am always willing to share my knowledge. Even more interesting are the investors who say something like, “If you find a property that I can make a quick $50K on, call me. I have the money to invest.”

If I see a property with a $50K potential, it’s mine — and no one else’s if I can help it.

I get people who contact me with things like this. “I have a goal to have 100 rental properties within 10 years. I have $10K to invest now. How should I start?” I admire the goal setting, and I appreciate the fact that someone can think big. Unfortunately, if that is your way to riches in real estate, your bubble will soon be popped.

Do You Have What it Takes?

There are many different ways to invest in real estate. I personally do rentals and have done a flip. I have also sold real estate. All my rentals had to be 100% remodeled after I purchased them, so I know a lot about rehabbing. If you are thinking about any self-managed real estate, you also need to know a bit about rehabbing. Once you can rehab a property, the world of real estate can get very interesting and more financially rewarding.

Read More Here

 

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January – February 2015 Rental Cash Flow

packs-163497_1280-PD24 of 25 rents were all collected and deposited in the bank by 2/3/2015.  Since I am now 100% full, it was a great month for deposits and rental cash flow.  My one late tenant is the same one as I have every month, and she paid on 2/6/2015.  It was late, and many landlords would be happy to get their rents by the end of the month, let alone the first Friday of the month.

My typical month goes just like that.  If you look at my previous rent collections, you will see that I rarely get any late fees, and I rarely go beyond the second business day of the month to deposit my rents.

How do I do it?  I get great tenants to start with.

Continue reading “January – February 2015 Rental Cash Flow”

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How to Be a Landlord’s Ideal Tenant — and Get into Any Rental You Choose

wonder-woman-533663_1280-PDIf you are a renter, you have many obstacles ahead of you. Landlords are full of horror stories, and you are just another potential horror story. Based on statistical evidence, you are not an ideal tenant.  You want and need to be the best renter the new landlord has ever seen.

No landlord really wants you, but they need you. They need you to help them pay their rental mortgage; they need you to help them pay their personal mortgage, they need you to help them retire early. But they do not need you to come around and damage the premise or cause them a lot of extra work. Here is how to be the best renter you can possibly be.

My rentals are multifamily, but much of this advice translates to all rentals. Much of it I have seen firsthand.

How to Be a Landlord’s Ideal Tenant — and Get into Any Rental You Choose

Prepare for the Apartment Viewing Process

When you set up a showing for a rental property, it is really an interview. You are interviewing the landlord or property management company, and they are interviewing you. Make a critical mistake in this process, and you will have to move on to the next property. You do not have to be dressed for church, but do not come looking like you are homeless.

Read more here

Have you ever been turned down for a rental?  If so, what was the landlord’s reason?  If you are a landlord, what do you find to be the most detrimental things a tenant does to get rejected.

 

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5 Reasons You NEED to Be Properly Capitalized for Real Estate Investing Success

savings-box-161876_1280-PDThere are many aspects to investing real estate. Some require no money down, but most require a significant amount of money to get into. And after you get into them, some require even more money. Failure to be properly capitalized or being under capitalized could cause you to not only lose your entire investment; it could cause you to lose your personal assets, too.

Never underestimate the amount of capital that it will take to be a successful real estate investor. I see many people embark on an RE investing career, and think they can spend their last dollar attempting to “strike it rich.” There are no quick paths to riches, and with a higher return comes more risk, every time.

5 Reasons You NEED to Be Properly Capitalized for Real Estate Investing Success

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Have you ever had an investment that costs more than you thought?  Or thought about an investment but decided against it because you did not think you have enough money?

 

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Best Home Improvements to Increase the Value of Your Home

It’s the question that nearly every landlord wants the answer to: What are the best home improvements to make that increase the value of my home?

Ultimately, you aren’t just embarking on your improvement project to increase your standard of living, you’d hope that there would be some return on your investment as well in terms of an appreciation in the value of your home.

Unfortunately, the question of which are the best home improvements is one where there is no one size fits all answer, and it would be foolish for us to assume that. It will depend on many factors such as the location of your home, preferences of the local market, the state of the economy, interest rates, and you could probably come up with a list the size of the Empire State Building listing numerous other examples!

Read More Here

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Protect Yourself As a Landlord With These 6 Crucial Documents

police-man-306848_1280-PDProtect Yourself As a Landlord.  As with most jobs, a landlord’s job is not complete until the paperwork is done. A landlord needs to protect himself with all sorts of documents. The days of renting a home on just a handshake are long gone. Instead, in today’s tenant-friendly states, you need proof of everything. That being said, great tenants do not need any documentation, nor do great landlords. Both sides know what is expected, and both sides perform as you would expect them to – with or without paperwork. The documentation is to protect us (and them) from the unruly behaviors that the ‘other’ guys might have.

Read The Rest of the Story Here

 

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July – August 2014 Rental Cash Flow

packs-163497_1280-PDThe month of July was great, all rents were received and the rental cash flow was 100%.  25 for 25, and no vacancies.  Only one was late, and that one was expected.  No late fee was charged to this one tenant, but all other tenants get hit with it even if they are one day late.  No major expenses were found.  I did have a bit of excitement with a murder near one of my rentals…

Continue reading “July – August 2014 Rental Cash Flow”

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Should you allow a renter to paint?

sherwin williamsThe topic of this post is should you allow a renter to paint?  With 24 units, I come in contact with many renters.  They all have their ideas of what a great place to rent looks like.  They might want their boy’s room to be blue, and their girl’s room to be pink.  I get asked all the time, “What do you feel about painting the bedrooms?”

Continue reading “Should you allow a renter to paint?”

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Targeting Your Market to Maximize Income

dart-board-25780_1280-PDRemember, landlording is a game of probabilities and statistics. By targeting your market, you can maximize profits, that is simple Marketing 101.  If you want to maximize your income, targeting your market is key.

There are good tenants in every category, but you are looking for the highest probability of success, not the needle in a haystack.  Success is defined a tenant that pays rent, leaves the unit in good order, and you make money. Continue reading “Targeting Your Market to Maximize Income”

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How Effective Tenant Screening Can Lead to Higher Profitability

detective-311684_1280-PDHave you ever wondered how how effective tenant screening can lead to higher profitability?  This is my first post as an author at BiggerPockets.com and will explain effective tenant screening.

I have 24 renters, in two duplexes and five 4-plexes.  I also screen for a large (120 unit) apartment complex, and approve or reject tenants.  I make the call as to when a tenant is no longer an asset to our HOA community, and force other landlords to get rid of their tenants.

Through these experiences, I have seen many tenants’ backgrounds, and see how a background report can predict future tenant behaviors.

The following post contains a few random thoughts; I will focus in more detail on tenant screening topics in future articles.  Be sure to follow my articles to get solid, no nonsense information on getting and keeping great tenants.

Continue reading “How Effective Tenant Screening Can Lead to Higher Profitability”