All Forum Posts by: Lelith Walker

Hello:

For those of you who self manage remotely, how do you deal with tenants that can not read in any language? We have a slight situation in our Fort Lauderdale properties.   They can speak English and French but they cannot read.  They came with the property.  Lease needs to be renewed in which we are increasing the rent and demanding that the extra people they moved in, move out. 

I hate doing things verbally solely. 

Hello

I was wondering if these meetings will be the 2nd Wed of each month or is it spontaneous?  I work the night shift so I would take a day off in order to go.

Forgot to mention some people self manage, some use residential managers and collect the checks electronically and others use property managers. Again the recommendations you get is from the networking resources above. A lot of people who self manage do not do so completely. For example, my friends have the neighbors report any problems to them via text message and phone call. The tenant put the checks into a separate bank account that they have setup for their LLC. The tenants report to the neighbor toilet problems and the neighbor contacts a plumber and sends the receipt to my friend. I have a realtor who is my property manager. I am doing a lease option so my tenants in GA are responsible for maintenance. One of the FL properties has a property manager. Again do what you are comfortable with.

Everyones strategy is going to differ. 

First, I investigate the cities - population, jobs, crime, avg income, avg rent on http://www.city-data.com and http://www.Wikipedia.com.  I also go on youtube and lookup people who have moved to that city and see what their insights are. Then I look at what is selling and analyze the deal on paper.  I may see if the city planning office has any documents online.

Second, I go to the city visiting the REIAs, real estate meetup groups, landlord groups, city planning office. I also check to see if there are neighborhood tours, or I go on any comprehensive day tour so that I can get a feel of the city. I ask the tour guide a ton of questions. If they do not have this then when I get in a cab going to the REIA or meetup group I ask the driver a ton of questions. If I see a cop I'll talk to them.

Third, find a boots on the ground person who will take photos inside and outside of the property that you are interested in.  You get these by recommendations at reias, meetup groups, http://www.wegolook.com, biggerpockets.  Some people use freelance photographers, college students, and retired engineers that live in the city to do this for them.  Some people partner up with the boots on the ground person to "ensure" that he/she will have their best interest at heart. Its up to you what you feel comfortable with.You may want a realtor or wholesaler again recommended by those above.  Realtors are going to want to know what type of return you want so that they can help narrow down the process.  Some realtors may photoshop pics so beware.

Fourth, after being ripped off I investigate people before doing business with them.  Unfortunately, I was ripped off by Wendy Lovejoy who used to be part of GAREIA.   So although I recommend going to them, you can not trust everyone including board members.  Http://www.Instantcheckmate.com is not too far off in finding stuff on people than from Lexis.  Lexis is just more indepth and expensive.  There is also http://www.pacer.gov, REI Blacklist on facebook, ripoffreport, better business bureau, consumer affairs, etc. Check the state licensing board and secretary of state to make sure licenses are legitimate.

Fifth, speak to a local lawyer down there. Again the people that you network with above can recommend someone for you or you can check with the local bar association for a referral. Some attorneys might assist you with doing background checks for a fee. You may consider putting the property in an LLC or trust whichever the atty says is best. FL taxes are cheaper than Jersey so these may serve you better than putting it in your name.

Sixth all of the people above can also recommend contractors to you as well. If you are going to do rehabs make sure you know what the ARV is before you purchase. Always double or triple the estimate the contractors give you. A lot of them like to low brow you so that they can get the job. Make sure the boots on the ground person is there 3 days a week to look at the job giving you video and or pictures on the progress.

Price goes by state, neighborhoods, amenities, and features.  The same house in one area will not cost the same in another.  Plus you have to consider the after repair value as well.  Are you looking in your home town of Daytona or somewhere else?  203k normally will not loan you anything that is under 50,000.

Its a good idea and can be profitable to invest out of state.  Most other states are more affordable, landlord friendly, business friendly, and pay lower taxes too except for California.  The cons is it can be hard to find trust worthy people or people who care about your investment.  It is a trial and error situation.  If you have to sue people who screw you it can be hard to go after them, because it takes time to do so.  Other cons really depends on exactly where you invest.  For example some states pay higher insurance, don't have as many jobs, lower population, and have worst weather.  If you do not drive or do not like to drive, you might not like some areas because the transportation system in some states and in some areas is lacking.  Eventhough ours is dirty and smelly, it is extensive. 

Each state has different laws on this.  I would check with an attorney first.  Some places you can charge storage fees for personal items.  Other places lets you sell the items after a certain time.  Is there anything in the contract that has a time frame in which his belongings should be removed?

Make sure contract it is contingent upon inspection, appraisal, and financing

Do not rely on the agents inspection, the agent can give you a broker price opinion, you can also look up comparables yourself on Zillow, housevalue, or eppraisals for rough estimate.  The appraiser can get a more precise one.  You can ask to see their report to see what amenities the other homes in area have.  Realtor can tell you about amenities also.

agents should not frown on a loan, if they do run from them

How old is the house? 

How long has it been on market?

Why are they selling?

What are taxes, bills?

When was the boiler last installed?  (look at tag)

What type of fuel is used?

Have they had a flood or leak?

Is there mold?

Whats the condition of ventilation, exterior, toilet seal, walls, floors?

Is the land sloped away from the house or towards the house?

When you open the electric panel what does it say in there?

Do you see cracks, chips, peeling, rotted wood, rust, settling anywhere?

What appliances are included?

How many outlets

Are the locks good?

What type of windows do they have?

The best investment goes according to your personality and market. Each newbie and market is different.  You pick the strategy and build a system that works for you. I did buy and hold and it is the most successful investment that I have.  People who do buy and holds have different personalities and different systems on how they run their property or portfolio.  For flips I feel that you need to have some construction skill or knowledge and it is best to work with someone who has experience.  You may also need a lot of patience and know how to deal with stress.  If you have OCD I would say avoid flips.  For wholesaling you have to be approachable, friendly, and have endurance.  For example, out of 25 letters I sent out only one person got back to me with a deal.  Some people send out 100 and do not get anything.  I am not committed to wholesaling.  Also remember you can partner with someone who is strong where you are weak yet shares your vision and values to make your  investment work. 

You can make money in bad neighborhoods.  I invested in Harlem when it was bad because of sentimental reasons.  I did not do it for money, but made money on it anyway. If you invest in these neighborhoods you should install bars/gates on windows and doors.  There are some really pretty affordable designs you can get from local locksmiths.  Put in security cameras and good bolt locks.  Call the local police station and they will do a free walkin assessment to better tell you how to secure the property.  If you cook for cops or give them some hot cocoa on a cold winters day they will monitor your property more.  If you cant cook or make cocoa buy it for them.  Do not do too much to upgrade the apartments in the beginning.  You can get good durable things that require little maintenance but that does not cost an arm and a leg.  Lastly, screen your tenants, there are good people who live in the hood.  You do not have to settle just because the neighborhood is bad.  Cleanliness attracts better tenants.