Is there a demand for rentals in Baltimore City?

Question

Hi there. I'm a newbie here and looking closely at Baltimore's market. Very promising at first glance. For those of you who recently purchased and rented out the property, how quickly you were able to place a tenant? What issues I might run into once I have my first property ready? Thank you for your time.

Account Closed · Answer

Sure and thank you Obinna for your vote - I appreciate votes - makes me feel good.

When I was an agent/broker years ago I decided that the best client I had was ME. I gave up driving buyers around looking at houses - I dumped the idea representing sellers and being abused by other agents, brokers, title companies, lenders, underwriters and other gate keepers who tried to stop me from succeeding in the real estate business!

I decided that the best client I had was myself! At that time in my life I had very little money, my credit was OK, but not what banks would readily accept.

So the question I had was HOW DO I MAKE MONEY IN REAL ESTATE WITHOUT all of those folks and without money or a great credit score.

The other question that haunted me was - how could I profit in real estate without owning real estate!

At 3 in the morning I jumped out of bed, pen in hand and started writing - the system came to me as clear as could be..... the answer was CONTROL AND ROLL!

If I could control real estate and assign it before I had to kiss the ring of lenders and all those other gate keepers - I could make money.

Not to confuse you Obinna - but what I did was to create a system I call Control and Roll - that is - I controlled real estate with a skinny contract and special clauses that allowed me to take possession and assign my interest (equity ownership) during my contract period and the right to walk if not successful in my assignment. It couldn't get any better than that!

So when the sun came up - I was in my office on the MLS making offers on expired listings - testing my system -

WOW - I couldn't believe it - the system worked. I made 22 offers and got 11 accepted and assigned 6 transactions. I made more money in one month than I made in a year working as an agent.

Today as an auctioneer, developer and investor - I continue to use this very simple system to SELL (assign) REAL ESTATE I don't own for attractive profits and cash flow.

I hope this was helpful and answered your question.

Charles

Brad Cogswell · Answer

@Aibek Akmat, a quick "hack" to understand rental demand is to look at Craigslist. You can keep tabs on open rental listings and see how quickly they are taken off. Also, feel free to call a property manager or two in the area to ask them as well. They'll give you some solid information.

Account Closed · Answer

Have the rental units and the tenants will come - We have many rental units and still buying and assigning properties - never had an issue with finding tenants (those folks who pay my mortgages) it is a great business here in Baltimore - Our family have been hanging around here for over 40 some years and have done well - you will also - I wouldn't worry about tenants - you should concern yourself with controlling real estate - work on -----

• Sandwich leases (never own but collect rent)
• Tax Sale 365 - how to do TAX SALE Poaching every day - avoid the competition
• Reverse Mortgage Foreclosures to control rental units
• Expired listings for easy control and rental without ownership
• Walking and Driving for vacancies - easy money - 
• Left-Over Tax Sale List
• Public Auctions - lots of equity here

There are many ways to control vacancies and to build an attractive monthly cash flow ----

Good luck - Charles

Mark Moyer · Answer

The relative quickness to rent a property really depends on how much you're trying to get in rent and the quality of tenant you are screening for.  I aim for market rate tenants.  I keep my homes very nice.  I've never had a problem filling a vacancy.

There are thousands of "high end" apartment building units under construction right now around Inner Harbor.  So clearly the big money thinks there is demand for rental property.

Account Closed · Answer

In response to the title - in a word, yes. :)

Account Closed · Answer

I don't know where the term "wholesaling" came from - maybe a car salesman - it only makes sense to me - if you are an investor (one who controls, buys, contracts for, auctions or assigns/flips real estate for a profit) you are purchasing below market ( it would not be a wise investor who pays retail - unless for personal use or redevelop to a higher and more profitable use) - - I prefer to be an investor - to me and others in this business who see many of these folks who call themselves "wholesales" as less sophisticated in the real estate business (only understanding a limited and small portion of real estate) not a serious professional and knowledgeable making equity profits - others see them as opportunist often times getting over on sellers sometimes unintentionally. Many them use  illegal and questionable marketing methods to attract sellers.

The system I developed years ago and still use to this day on houses - commercial - lots - land and nonconforming real estate is (STOP - understand - I am telling and not SELLING - only trying to answer a question) the system if followed - prospecting - evaluating- controlling and assigning by public auction is the basis of Control and Roll.

If you care to call that "wholesaling" well that's OK - but I call it making money without contingencies - agents - financing - depending on the condition of real estate - assigning (flipping) for all cash - in "as is" condition and a fast contingency free transaction.

There is NO greater LEVERAGE in the world than selling real estate you don't own for a reasonable fast equity or cash profit. I like to say - "control low - assign low and do it often"

Account Closed · Answer

Control and Roll is the grandfather of "wholesaling". There is no better leverage in the world than selling real estate you don't own, don't need a loan for, don't have to apply for credit, have right of possession and if you miscalculated your estimate of time it takes to assign your contract - a nice clause that lets you out of the deal on a friendly and with little or no arbitration or hard feelings.

To answer you question - there is a BIG difference between "wholesaling" and and Control and Roll - and it has to do with negotiating - disclosures and turnaround time for profits to be realized. The system of Controlling real estate and liquidating it fast has been developed over many years and perfected. Wholesaling works but it is not as effective.

John Bucci · Answer

@Aibek Akmat Very high demand for rentals. Filled mine in a couple of weeks....Make sure you do your research as markets change block to block in baltimore. Many areas may be mostly section 8 tenants.

What neighborhood / areas are you looking?

Account Closed

Hey Charles, how do foreclosure auctions in baltimore work? are they weekly at the courthouse? How competitive are they these days?

Kevin Favorite · Answer

the big guys apparently think there is  demand for  rentals. Lot of  apartment buildings going up. Read this  Baltimore Sun article.  http://www.baltimoresun.com/business/bs-bz-apartme...

Brad Cogswell · Answer

@Jasmine Wilborne I think it's most helpful when there is some value you can provide them (even if it's not now, but in the future). I don't know where you're at from an investing perspective, but when I do some of these calls I make it very clear that I am going to be needing a property manager as I grow my portfolio. That lets them know that there is a possibility you could do business in the future and gives them more incentive to help you out.

Is there a demand for rentals in Baltimore City?

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