All Forum Posts by: Jonathan Taylor Smith

Hmmm - "Wholesaler" has long been one of those professions that has a high turn-over as it becomes known that it isn't as easy as told. But I would not be surprised a bit to learn that more than 3 of every 4 Wholesalers may not have survived the major market change that took place in the post-Covid years. It has to be hard to get a home-owner to sell to you at a discounted price when everyone and everything is telling them that their junk house is now worth 2-3x what it was in 2019. And in 2022 people were bidding over asking for just about everything... If so, just place it with a Realtor and cash-in! That had to have a major impact on Wholesalers. But also, AI dropped in 2022, so maybe those missing Wholesalers are just using a different lead source?

What I've seen is that the most probable "problem tenants" (Section 8 or otherwise) are looking for "mom and pop" or unexperienced / unprofessional Landlords to take advantage of. So, making it clear from the start that you are running a professional rental business goes a long way towards avoiding those who are seeking just the opposite. This starts with how you present yourself and your business, how you answer the phone, your rental listing(s), your website, etc... But it really gets serious with how you handle showings, your application, how you conduct tenant screening, credit / background checks and your communication style throughout all of this. And once you've got an approved applicant, then you present them with your lease, which needs to be comprehensive in its protection for you and of your property (mine is 24 pages and counting as I encounter new issues, and it contains fines for certain violations) - check your state laws. Make it clear you'll be conducting inspections (I do them up to every 4 months / 3 times per year).

But in your question, you used the word "prevent', which is NOT possible. But such things as I've stated above (and a whole lot more that would require I write a book) will greatly reduce the likelihood of a bad rental outcome. I've been doing it since 2015 (including Section 8), and I've yet to have any damage done that exceeded the security deposit. And while I've had to file for eviction a few times (each over past due rent), none made it to the point of a Sherif put-out - and again, no serious damage done.

@Brandon Walston - Every state has their own landlord / tenant laws, but I think pretty much all of them (or maybe even at the federal level), you must honor the lease that is in place when you buy a tenant occupied property. Not sure, but there may be an exception to that if you are making the home your primary residence - but maybe not even then. In such a case, I'd prefer that the lease be month-to-month for this very reason.

@Dharmam Buch - I find the Zillow Rental Application to be a joke. For example, the "self-reported" credit score of 750+ means that they think or have decided that their credit score is, should be or would be nice if it were in that range - but that does not mean it actually is. Instead, make use of a system that allows you to handle the application, credit and background yourself.

Hello @Andrew L. - That was the same reason I got my RE license, and also how I ended up with EXP. Would be happy to be your sponsor, and can also aid in advice / direction as needed.

Nothing is wrong with taking a job to learn an industry, process, procedures, make contacts, etc... and then (sometime later) applying what you've learned, and connections made into your own business. However, large volume wholesale companies of which I'm aware tend to have non-compete agreements that you must sign, which would "prevent" you from going into business for yourself (or with a competitor) for some period of time and/or within the same territory. So, you might have to wait a year or few thereafter, or move, or both.

I've seen this TV show - just can't remember the name... It is two female Realtors who partner with distressed property owners to get the house rehabbed and sold. They handle the rehab, then sell the property (acting as listing agents), and split the profit with the property owner / seller. From your post it does not sound like you're a licensed agent, but the concept is the same. If I recall, there is also a company offering a similar service.

Section 8 pays "market rents" that are UP TO the amounts as posted on their sites as set for each county / zipcode by HUD. So, what needs to be determined is what are market rents for your location? Would you be able to easily rent the property in question to a non-voucher holder for $4,221 to $4,921? Or would a non-voucher / market rate tenant pay $2,800 to $3,000? If this is market rate for a similar property as yours at this location, then Section 8 is under no requirement to pay more, even if their website shows a higher potential maximum rent.

Yes, a hard money / rehab loan could be obtained to purchase the property and rehab the existing house (IF the numbers work for purchase price, rehab budget and ARV). Then you may be able to split the lot and do a construction loan for a new build on that additional lot... IF, IF, IF splitting the lot and building another house would even be allowed in a historical district. And even if so, I'd imagine there would be LOTS of restrictions and red tape as to what you'd be allowed to build and its appearance - No?

Hello @Stacy Carey - Congrats on getting licensed! This was also my situation back in 2015, as I only got licensed to get a buyer's agent commission on my own purchases. I first hung my license with Keller Williams, but they had a problem with me not performing as an agent to the public. I later move it over to eXp Realty, and things went better there. But a funny thing happened along my journey - I actually started to perform as an agent for others. Because buying, rehabbing and managing my own properties gave me a certain expertise over time that made it an obvious choice to do so with a focus on working with other investors to help them do what I was already doing for myself. And that additional income as an agent and property manager allowed me to buy still more properties and is giving me connections of people to partner with on larger deals going forward.