I grew up in New Jersey and bought my first property at 18. I didn’t really understand how real estate transactions worked, so I went to the court house and watched several transactions occur. As time passed, I found my first property that was going into foreclosure. I contacted the owner and purchased the property using a quick claim deed. I resold the property before the bank foreclosed on it.

I bought my first rental property in the 90s. I made the purchase in Baltimore. This was my introduction into low-end properties. This is where I realized how large the opportunity and returns were for low-end rentals. Many people do not want to deal with the headache or know how to deal with the headache of managing a property in rougher neighborhoods, so they let these properties go for incredibly low prices. Row houses, in Baltimore, are generally priced at less than $30,000 a piece, but this of course can change across various neighborhoods and blocks. Rents will generally range from $800 - $1,300 a month.

Many people do not want to go into these rougher neighborhoods, but I felt no problem. I have never been assaulted, attacked or even approached while working in rougher neighborhoods.

The most common issues that come with managing properties in rough neighborhoods is that tenants do not want to pay rent. But there are of course solutions to that. When dealing with a prospective tenant, I usually perform an in depth background check and collect copies of IDs/social security cards. If the tenant is employed, I make sure that their employer gets involved. I have the employer and the tenant make an agreement with me that for as long as the tenant works for that company, they will deduct their rent from their paycheck and pay that directly to me. This way, I do not have to chase anyone down for rent.

Working in lower-end rentals require owners/property managers to be more hands on. I speak with my tenants multiple times a month. My tenants typically do not know about HVAC systems or how to make minor repairs, so I have no problem going out and taking care of the issues. Some owners refuse to do any sort of maintenance for delinquent tenants, but I believe this is wrong. Whether or not you are behind on rent, if you have an issue, we will come in and address it. My tenants also change their numbers frequently. I do not know why that is common, but you need to adjust and make sure you are in communication with them, no matter the circumstance.

To those looking to get into real estate, I say to do your research and do not take risks that you cannot afford. Working in the lower-end can lead good returns, but there is no point of taking risks if your credit and finances are not where it should be. An alternative to those who lack money, or good credit, I would recommend you join a partnership. Because I have a strong balance sheet, I typically take all the risks with my partnerships. My partners are set as limited partners, meaning that their liability is solely based on what they put in. The benefit to me taking all the risk is that I will take 10% of the top in addition to the returns I get from what I put into the partnership.

In my career I have owned and managed over 100 properties.

I wish everyone good luck who choose to dive into real estate! The journey may be long and tough, but it is worth it. Feel free to contact me with any questions, I am open to help.