All Forum Posts by: Lelith Walker

I used to. I work graveyard now.  I think 2nd shift is easier because you get to sleep.  Because the tenants are sleeping when you come home.  You also do not have to take off from work to monitor contractors. Most of the problems tenants have are in the late afternoon and can wait until you come home at midnight.  The key is choosing good tenants, treating them right, and prompt maintenance.

If she is a good tenant, she pays her rent on time, and has never violated the lease then I do not see why not.  Is your property rent controlled?  Is she section 8?  If not, look at how much hotels in your area charge to figure out a daily rate.  Also since you are in a different state than I am you can verify with your lawyer first.  If lawyer says its ok make sure she pays you first and do not have her tell you that she is living out the security.

From April to September is the optimal time to get tenants. People have their tax refund checks, kids coming out of school, graduates of medical school start their internship, law school students get summer associate jobs, engineers get transfered, and the weather makes it easier to move. 

I went to about 3 local first time home owners seminars in my city.  I obtained information on what new and rehabbed homes were being offered, which carried subsidy, banks that had programs for home owners, and government grants that were given to people in my city.   I asked the banks what they charge for their appraisers and just an estimate in closing costs.  I chose the bank that I already had an account with because they had the best program for me.  I signed up with legal shield to save money on legal costs.  I also seeked out inspectors, although I did a comparison I did not care for the one that I chose.  Back then when you apply for homes with subsidy or banks that have a first time homeowner program they require that you take a course on homeownership and landlording if its a multi.  The course is free,  I see that they are offered online now.  NHS offer a lot of free classes.  However, you do have to physically attend the building maintenance class.  I took mine in another state so they may have something different in your area.

http://nhssf.org/ NYC has HPD which offers free landlording courses but we have not found anything similar in Ft Lauderdale or Kissimmee.  (This is where the other homes are at) We just use Legal Shield for problems.  Landlording in FL is a little easier.

Everybody has their own strategy that works but it may not work for you.  You have to self assess and do what is fitting for your peace of mind.  There is more than one way to skin a cat.  A lot of things you will learn by trial and error.

Shop around for inspectors and do not just go with the one who offers discounts.  Ask if they would have a problem walking through the house with a contractor particularly if the house is new.

Don't trust someone just because they are on the board of a REIA, come with recommendations, and are minister (or say they are). I got ripped off that way by Wendy LoveJoy eventhough she is no longer with REIA. People pay for people to give them recommendations, follow them on twitter and facebook. If they say they are a minister check the church they say they preach at too. I would do more due diligence by checking backgrounds more thoroughly like their criminal, identity and credit.

Always get it in writing. Don't fall for I do not have time to give you a contract now, if you give me the money now I will give you a contract later and I am just trying to save you money so that you do not have to pay more for <fill in the blank> and the contractors can get started now. 

If anyone talks to you stupid or sideways run from them.  A lot of people fake the funk making you think they have more than they really do.  Plus its a form of psychology they use on you to swindle you out of your money.  If you feel anything in your gut and you loose sleep stay away from the deal or the person.  An example, would be we don't hire inspectors to check rehabs because the city inspector comes anyways and then section 8 also inspects.  Hire an inspector engineer that is nonpartial and can give you a proper estimate of repairs.

Don't trust a friend or associate who says their contractor is licensed.  Double check by going to the lawyer or the secretary of state website.  Also check that they are certified in asbestos, mold, radon etc.  Have 3 of these lined up because some will abandon like Abdul Eid, some get ill, some go to jail, some get deported and some get killed.  You need backup.  

General contractors like to work with their own people. They do not like it when you get your own plumber, electrician, hvac etc.

City inspectors (code enforcers) do make surprise visits. Be careful when using unlicensed and uncertified people.  Some places will have your property condemned, that is why it is good to require they get permits before they start working.

A day or two after you submit payment to a contractor that is doing a rehab, call the permit office to make sure they got one and its in their company name.

Don't trust your family to look out for you especially if no formal partnership was established.  Besides God and maybe your mama, NO body cares about your money and prosperity more then you do.

When setting up an LLC it is most tax effective if you do so in partnership with a senior citizen. Also find out if you have to register the LLC in the state the properties are in, just in case the LLC is setup in another state.

Have a legal service to turn to.  Any legal issues arise always listen to them over someone else.  For example, I have this one homeowner, a police officer, on my block who subpeoned me to come to court.  When I confronted him, he says it was an accident because he got my name mixed up with someone else. He told me to stay home since I did not agree with him refusing to pay dues. My lawyer said if I do not show that I could be fined and could not believe someone like him advised me on that without offering me the cost of the fine.

Have an accountant and financial advisor that are real estate investors.

Make sure your realtor has a good tenant screening service that checks identity, credit, housing court, criminal background, etc  Also check the real estate commission for your state or city and make sure realtors license is current and has not expired or been revoked.

Put a recorder on your phone, turn it on when needed and download to your pc. This is legal in most states so check first.  Otherwise download your text messages and communicate more in email.

When selecting a project manager ask what their goal and availability is.  You want someone who can commit to checking up on your property.  It may even be better if they live in the same locale and not a 40 min drive away.  Don't pay all of the money up front either.  This goes with all of the people you work with.

Try to keep loud people who appear confident and always putting other people down away from being the president of home owners associations.  They just want to boss people around and get into their business, they do not really know what they are doing.

Each state does closings differently.  Find out from the state that you will be investing in what is their procedure.  Same think for lease options.

Find out what materials are best for the state that you are in.  For example in GA luxury vinyl flooring or tile is best in NY anything is good unless the subfloor is concrete then vinyl or laminate is better.  In NY tile is only good for bathroom. 

I didn't do it then either.  I had a 10 year tax abatement because I bought in an area the government was trying to turn around.  The 10 years have passed so now they charge me approximately 4000 for the year for my 3 family.  

I do not do the math I just pay the 4000 tax they send to me.

I communicate online with some members from

Atlanta Wolfpack Investors

PalmerHouse Properties 2911 Piedmont Rd NE, Atlanta, GA

$5 sat 10am

I bought in Harlem 16 years ago.  Many did not support me and told me that I should be doing other things or move to another state or go to LI.  Now those same people wish they bought something here.  I get offers daily and I am not selling nothing.  People ring my doorbell asking if I am renting and I am not.  

You can follow your heart but do not be blind to the numbers.  To evaluate the property divide the rent by how much the property cost.  If it is 1% or more then its probably a good deal.  Next look at how much you can put down, figure out the mortgage, electric bill, water bill, gas bill-If the rent covers these and you have something left over then its probably a good deal. 

Now one more consideration is how much repairs will it need?  Get comps in the area of the home. You want the cost of repairs needed to bring the home up to the same value as the other homes in the neighborhood.

@Lucia Uhlmann I know people who have used watermark but most of the people that I know use Fuquan Bilal. I saw him on meetup.com first but now he has developed a relationship with REIA NYC. Many of the members there are satisfied with him and used him before he became affiliated. I also followed up with someone else who I saw at meetup who went with him and said that he has made money on his notes with him. He is on facebook and in facebook note groups.

My preference is San Antonio.  It has a higher population, increasing number of retirees, one of the cheaper cities in the US.  The economy seems to be more diverse having a good number of military stationed there, quite  a number of hospitals, tourism, oil, gas and growing a little in technology.  Taxes are lower.  Actually have you considered the Obama promise zone area?  If I am not mistaken I do not think you pay taxes in those neighborhoods located on the east side.  Its easy to get around as well.  The people in Alamo Reia seem to be real supportive, you should go check them out. The people who I met there that were doing flips had some issues with contractors but they made it through.    I have never been to Austin so I am very biased.  I just know that the average income is higher and unemployment is lower.  My tenants in my NY home are from there and so far they pay on time every month.