All Forum Posts by: Brooks Rembert

Which do you prefer for durability and overall value? 

Hi @John Moore, I have a story which happened just recently... 

I was on the prowl for a new buy and hold and ran across a promising looking place on Zillow. (I know, I know)

It was a BRRRR-looking dream, so I used the form on the house's Zillow page to ask a simple question...

"There appears to be some water damage. Do you know if there is any mold in the house?"

HO---LY--- HELL--- 

That sent off a firestorm of phone calls and texts from multiple robo-dialers, because unbeknownst to me, it was in fact a Zillow owned house.

I finally took one of the calls and the used-car salesman sounding guy asked if I minded being put on hold so he could transfer me to an agent.

4 minutes past and slick Willy was back.

"Bob's not picking up. Lemme put you on hold again and find another agent".

"No thanks". Click.

The moral of this yarn?

Yes, they're making a push into buying and selling houses online.

But if the "experience" doesn't improve DRAMATICALLY, home-buyers will be turned off and word will spread.

So just keep doing what you do... use your personal touch and don't run your business like a puppy mill --- all will be fine.

My 2 cents.

No, they're not. 

I'm going through this issue right now. 

We bought a new primary residence last year and happened to discover the title company submitted the deed with the wrong sales price. 

We're having to get a new deed created to fix the issue 

@Paul M. DeAngelis, I agree with @Theresa Harris, and couple of hundred bucks is a HUGE deal to many tenants.

I would raise them $50 immediately (since she's month to month) on a new 12 month lease.

If she balks and leaves, then you can get a new tenant at market rate (assuming the market supports a couple of hundred dollar rent increase).

If she stays, then another $50/mo next year, until you're at the number you want.

It'll take more time to get where you want it, but a good, clean tenant is INVALUABLE.

@Tucker LaClair, sounds like a win in my book.

Great job.

If they're submitting before your official late date, nothing for you to do.

Once they submit it past the 5th, you can set the precedent to them that it's unacceptable by taping a pay or quit notice on the front door on the 6th.

This is usually the first step in eviction proceedings and is enough to get most tenants to get right.

@Caitlin Ward, welcome to BP.

Buying a "fixer-upper" is a great way to start. You can take your time getting it into rent-ready condition, then when you move in a few years, have a great place to rent to others.

Best of luck!

Have you ever heard Warren Buffet's 2 rules of investing?

Number 1 - Don't lose money.

Number 2 - Never forget rule number 1.

Me on the other hand?

I've accidentally ignored rule number 1 plenty in my life.

Particularly when it comes to one area of investing.

It has a special place in my heart... though it often will stomp on and rip my heart open.

It's real estate.

My wife and I own a few rental properties and I KNOW in the long-term, they'll be fantastic investments.

But in the short-term, day to day of life... they cause me plenty of heartburn and seem to be a bottomless money pit.

Take for example one particular townhouse we own.

We bought if for a good price... spent about $10,000 fixing it up... and put it on the market for rent.

My wife, being much more financially conservative than me, started to get worried after 2 weeks went by without a signed lease.

So when the next applicant came along, with a whopping 590 credit score, and against my better judgement, we let them move it.

And of course, immediately, problems started.

Late rent was a common occurrence (There isn't anything much more frustrating than chasing a tenant around trying to get them to pay rent).

Plumbing issues (upon further inspection... caused by hair extensions and 'do rags flushed down the toilet).

A busted clothes dryer (I swear they tried to dry a stack of bricks in there).

Anyway... needless to say, that particular property has been a money loser for us.

We're now on our 3rd tenant and hopefully, it'll be drama free and we can start going cash flow positive.

If we can right the ship, it'll be paid off in about 4-5 years and then we should see some great cash flow (fingers crossed).

So what does this have to do with you?

Ah, plenty my young friend.

You see... with all the different ways there are to make money in this world, I still believe real estate is the best way there is.

Rather than just following some recommendation of a loud-mouthed talking head on TV to buy this stock or that... you use leverage (i.e. debt) very smartly to build equity in something while your renters actually pay the debt for you.

Whoa!

Anyway. Rant over.

Have a great weekend and let's go find some deals.

Hi @Josh Longtin, 

The pros for the seller include continuing to get a monthly check, but without having the headaches of being a landlord...

Plus, by holding the note, they safe a huge chunk of tax bill to Uncle Sam this year. By only paying tax on what you pay them each year, they spread out the tax hit over a number of years vs. paying a big chunk of moolah this year.

There's really no set interest rate. It's all negotiable. Some sellers will go for 0% and some may want 2-3% above a typical bank financed rate.

It's good for you as the buyer because you can avoid applying for a loan and many times can get a better rate than you would be able to normally.

Seller financing is MUCH more flexible in most cases.

@Paul E. Drecksler, what a great story! I'm glad it all worked out and it looks like a great property.

Looks like it's on a good sized lot, too.

How much is your brother paying you to live there... and what is your mortgage payment each month?