All Forum Posts by: Anna L.

Super happy! If you screen properly you should be in a great position. I am about to buy 4 more rentals. I see that there is a need for affordable rents in my market, because rents are going up. I am also working with charitable organizations that support people and I get paid by them, while helping people getting on their feet. It's similar to section 8, but with an organization behind them that actually does periodic inspections and helps them get jobs are further their education. 

I would say, better re-finance at the lowest rates ever now and use cash to invest in other rentals. Use BRRRR method and you have an exponential growth to your money. If you pay it off, you'll get hit more on your taxes.

Zillow and Cozy.co. My main inquiries come from Zillow, but when they are ready to apply, I divert them to Cozy, where they submit for credit and background check and pay the fee. Cozy is amazing for applications, setting up payments, send renter's insurance requests, getting paid electronically. 

@Wallace Zhen, you can open an LLC yourself or with an attorney, not a CPA. I used to open my own LLCs until I realized that I was still leaving trace to my name. First, you do not want to name your LLC with your name, like "Zhen LLC" (that's what I did with my first one #faceplam). You basically give litigators your name to go after. Second, and this is where you need an attorney, you don't want to have your name on the certificate of resolution, you want to have your attorney's name. This is because litigators can go to public records look up your LLC and see your name there.

Here is a video with more details on how to properly set it up. This is my attorney who I use to set up my LLCs.

https://youtu.be/h8DHEQ4BkF8


  

Best approach is to have a landlord friendly contract. My tenants are responsible for anything that is caused by them. I even list all appliances in contract "as-is", so that if it breaks they can fix it themselves if they want to continue to use it. I am being reasonable though if there is anything that is not their fault. For example we had a squirrel stuck somewhere between the house walls. We had to call special service to remove the animal. 

I use some money to lend to investors for their BRRR projects. 12%, first position. Essentially, I am their private money partner. They benefit from not paying hard money cost, I benefit from investing my Solo 401K funds at good interest rate.

Never give an offer to any seller. The person who names the price first will always loose. When you call you want to get 4 key pieces of information: 

1. Motivation - why they would like to sell. Just want to get an offer is not a motivation - move on from tire kickers. 

2. Timeline - how soon they want to sell their property. Enter the date to follow up in your CRM if they need time.

3. Property condition - does it need renovation? Ask detailed questions about major items, such as roof, A/C, kitchen, bathrooms, et.c.

4. Reasonable asking price - you have to get the price from them to know how much you will negotiate later 

Whenever my VA calls and the seller says "you called me - so give me your offer now", he says "well Mr seller, my partner would need to run the numbers, but in order to give you the best offer, I need to ask you few questions about property condition, is that ok with you?" You can too, also use fictional partner to distance your self from giving an offer the first time you talk to the seller. Remember, you need to touch the seller between3-7 times before you can get the deal.

I hope this helps. PM me if you have other questions.

Ryan, I am in the same boat. But if you do quit your W2 there are other ways of acquiring properties without getting qualified for a loan. Check out creative financing online and find a creative financing friendly wholesaler in your area. 

As others pointed out, depending on the contract, she may sell to you without any agents, but still owe a commission to the agent she has a contract with. It's not as easy as just breaking the contract. There could be contracts where if property sold within the 6 months the owner may still owe a commission. 

If you find that the owner can't get out of the contract - I would offer $1,000 referral fee to the agent or what ever legal way of compensating the agent there is. 

My plan is to be agile with the market trends. There are deals to be made in every market.