All Forum Posts by: Carlin Randolph

@Brendon K."Paying Cash" is a saying people use to indicate they have the funds immediately available to purchase property. When a deal goes through, the"cash" funds in the banking account of the buyer is transferred to the seller's account with a wire or ACH transfer which is heavily tracked.

When a seller uses the words "cash" or "like cash" they can either have the funds in their account, an LLC's account, or the account of investors, or it may a short term loan they are getting from a Hard Money Lender. They approve loans and make money available for sale transactions within 1-2 weeks especially if the buyer is pre-approved. By that time, all of the other things that need to happen to purchase property such as the inspections, disclosures, and permits have already occurred. So with it being no difference to the Seller's pocket or timeline, Buyers usually just say for simplicity, "I'll buy your house for Cash!"

Best of luck to you!

@Bryan Flores Yep. I get it. I do know that as investors sometimes we loose much more money trying to get back what we lost. If that doesn't make sense, think of the last time you were in a casino, down $300 and stayed a the table to try getting it back. We almost always leave $600 in the hole.

That said, no matter how much rent the tenant owes you, maybe your best try is to offer cash for keys to just get them out. And when you get a new attorney, maybe have them draw up suit papers (just for effect) and give them to the tenant to show you're ready to pursue but you "don't really want to do that to them." Whatever real or constructed bonuses you can add to the deal will be more incentive and more motivation for them. The important thing is to know that you win as long as they move out and you get your own quality, trained, tenants in there.

I hope this helps and best of luck to you. Connect and let me know how it goes!

Yeah, Sorry about your lawyer...  Get a new one tomorrow and definitely complain to the state bar association. At least that's one way to help his future unsuspecting clients.

Also, it seems like the tenant pays rent but has other issues and that you self manage. That may be something you might want to change.  A good management company would've been able to get a better grasp on things sooner. As a matter of fact, you may be able to get some good answers for your area just by interviewing a few prominent mgmnt companies in the area.

That aside, maybe try talking to the tenant and meeting them at the "human" level. I have found that sometimes tenants are not trying to be jerks but their circumstances..... and sometimes when I have tried to play "the big company who owns the property" they aren't able to see the issues they cause me or my company. Once I had a property the management company couldn't get the tenants to move out and I showed up as a regional representative of the owner company and they all agreed to cash for key deals. Not suggesting you go that route necessarily but having a human-to-human conversation is worth a try.  

@Darin McKinney Yes there are a lot of resources on BP for sure.  I don't know what your focus is but J. Scott has a couple of great books on Flipping and rehabbing and Brandon Turner has a very good book on acquiring rentals and buying with low or no money down. You might also hear on the podcast to treat it like a business so great business books will help also like Thinking Fast Thinking Slow and Don't Split The Difference. I would say treat it like you're learning a new language where you read a lot and then practice by using it but also by speaking with people who know it to help you become more proficient. I hope that helps. Best of luck to you.

@Darin McKinney I completely agree with @Kyle Keller to get your feet wet with mingling and interacting with the processes of being a real estate investor. Coaching is good and even great for some people. But at the end of paying all the money, you will still find yourself having to coach yourself to get started but just more information. The understanding comes when you make calls to meet investors and build your investment team of bankers, agents, contractors, property managers, and do the necessary research on whatever area you're interested in investing in.

Its a lot cheaper to find the online and book resources to get you started on those tasks. Then if you decide to get coaching, you will have some action in your pocket which most other coaching students don't have...and you'll have a better idea what to do next with the information coaching would give you.

In my experience, this question can mean so many things depending on what you're trying to solve or get done. But when you ask, I think first of states with rent control vs. being able to set the rents at market value. For this, nmhc.org is a great place to start a search for the right state. The resources there are very helpful. 

@Manuel Villegas if I may suggest: If this is an investment property, create an LLCin which, both you and your wife will be members 50/50 and let the LLC apply for financing. Both of you will then be the guarantors for the loan. Unless you are looking to get an FHA loan, you are going to find that this is the best option for taxes and liability and protection for both of you. It is not a good idea to own investment properties in your personal name unless you are house hacking.

@Eli M.Hey. I have run into the same situation but more often where the comps do not meet my criteria. May I suggest calling 3-5 appraisers that service the area. I don't know where your farm area is but sometimes there's a bank that has a local person that talks to the appraisers, and handles loans and while you're there, can tell you how much they would refi the property for if you get into trouble on the deal. I do also like going down to the county court because there a wealth of information in the people that work there and most times they're friendly and happy to help. But yeah, I'd say start by calling the appraisers that work in the area. 

@Benjamin Zwiebel@Benjamin Zwiebel 2.5% i think is pretty good. Now bird dogs that people use can get anywhere like $500-$1000 per deal they find for investors. All you have to do is niche your search methods and develop expertise on finding larger deals that will net you more value than that...especially in the long run if you're getting part of the equity. So look at it this way. You take more money from your partner by asking for a larger percentage or you can create more money for the partnership by finding better deals. I hope this helps.

@Alton Bell I would say that flipping a home, whether you are doing it with your money or worst, with someone else's money is a very serious job with very serious consequences. There are a lot of moving parts and management of the process from start to finish. Perhaps the best option would be to scale up in your ability to find and/or create really good deals. Investors skip this step of the "career" aspect but it is thee one step that can make you a lot of money. Once you find your first great deal, focus on that one and learn everything about your role and every role that is a part of the process...where it goes wrong (and there will be some wrongs) and where it went right. I would propose that scaling a business is mostly about getting systems in place that work more efficiently at an increasingly faster pace. They eventually become so efficient that when it is time to do more than one flip at a time, the smoothness of your processes will tell you and you won't even have to ask. Good luck!