Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 7 years ago on . Most recent reply

User Stats

166
Posts
46
Votes
John S Lewis
  • Jackson, NJ
46
Votes |
166
Posts

Are you a slum lord?

John S Lewis
  • Jackson, NJ
Posted

So, since I've started as a pro member here on BP, a lot of the properties  in my price range are all in run down neighborhoods with high crime.  Does anyone have experience with these types of rentals?  Is it just a no-brainer to stay away? 

Most Popular Reply

Account Closed
  • Flipper
  • Pittsburgh, PA
345
Votes |
218
Posts
Account Closed
  • Flipper
  • Pittsburgh, PA
Replied

@John S Lewis

I don't think you've quite understood how money is made in actual slumlording in war zones. BiggerPockets.com doesn't do webinars on that sort of thing.

1. Slumlords receive rents in cash through third parties and hide the income.

2. Slumlords buy property and drive it further into the ground in the hopes that it will become part of a government-sponsored urban renewal scheme.


3. Slumlords do not keep up their tax payments, especially in judicial foreclosure states, knowing that it will be years before the courts do anything about it, and consciously plan to sell just before foreclosure after using up every blocking tactic available to them. Sometimes they just plain abandon the property after exhausting every possible illegal tactic to make money out of it.


4. Slumlords knowingly rent to tenants who are not real occupants of the property, but are rather fronts for wanted fugitives or illegal aliens. These are the types of people who will willingly stay in the house or apartment as it's driven into the ground. The slumlord often helps find the front who rents the property.

5. Slumlords have links to organized crime gangs that allow them to intimidate their tenants.

6. Slumlords aid and abet defrauders of assistance programs to steal benefit payments from the government and their fellow taxpayers.

Don't do these things, and you're not a slumlord. You're instead the last guy who's giving people with extremely limited options a chance. You're the guy whose hand they're grasping to stay out of the abyss.

I think you'd really be surprised how much the most hardened police officers and child welfare caseworkers will typically respect the difference between a responsible landlord of low-cost properties and a slumlord. 

Loading replies...