All Forum Posts by: Chris Bounds

Consider this, buy 1 rental per year for 10 years (see BRRRR strategy). Starting around year 5 you can sell one of your existing houses and use the proceeds to replace it with 2 more. At the end of 10 years you'll have 15 properties with cash flow and equity to build on. Run those numbers and plan how aggressive you want to run that strategy.

A document the buyer files with the county putting their contract on public record.

Search the forums for @Michael Quarles. You'll find extensive advice.

I've only had one person submit such an agreement and I laughed. First, most folks don't have the resources or ability to enforce it. Second, the wholesaler can always file a Memorandum of Contract. Third, if the deal makes sense we're signing a contract anyway. You'll probably run into that more with large wholesaling mills than smaller, local wholesalers. 

@Garrett F Anderson, another note to consider is the acquisition strategy. Why would you be considering 20% down? On any acquisition, for a flip or rental, we use hard or private funds. For a rental you can then implement the BRRR strategy and refinance out with long-term conventional / commercial financing. If you buy cheap enough you will have little cash in the deal after refinancing.

Two points to note:

If you don't plan (or have the time)  to manage the tenants/property like a professional PM company, then hire a PM. Some of the best deals we get come from bad landlords. 

Consider the tax implications. If you sell it and have lived in it 2 of the past 5 years then there may be exemptions from gains taxes. If you have a lot of equity it may be better to sell it now and use those funds to buy rental properties. Of course, check with a CPA regarding your unique situation. ;-)

Like @Ray Lai mentioned, I also highly recommend a CRM. We tried the Excel approach for maybe a month. It may work in a very lean way with a small list, but a CRM is so much better. Don't just think about serving your current needs. Think about growth. Do you want to spend a few hours building an Excel tracking system that you'll outgrow soon or would you rather spend that time setting up a CRM that will grow with you. Think like a successful business owner, not a mom & pop shop.

Fair is market value. If you're running a business, which rental properties are mini-businesses, you must get rent to market value asap. 

When we inherit a tenant on a M2M lease and are considering keeping them, we require them to fill out an application just like a new tenant. If they still qualify, then we'll have them sign a lease agreement. We do consider incremental rent increases over a short period of time. 

Welcome Claudia! Houston has an amazing REI ecosystem with networking meetings almost every night of the week. Plug in and take action!

@Dave Foster, gotcha. I'm looking to turn one into 3-4 so I'd be spreading cash around.