All Forum Posts by: Blake Densmore

That is not a bad way to start out. You may have stated this already, but where are you located? Our deals are typically $50,000 properties, so the cash investment is $25k. They range from $45 - $65k for the most part. We offer a 5% interest rate. That is very competitive for the seller financing market.

I am in Canton, GA. A northern suburb of Atlanta. The struggle for me is finding property in my area for that price range. Are you only in Seattle or do you know of those types of deals in other areas? If you do, let me know. If not, I am not sure if I am ready to be a remote landlord. LMK

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Originally posted by @Kevin Moen:

You bet. I buy properties at a steep discount, rehab the property, screen and place a tenant, then sell the whole thing with professional management in place to an end investor. Your job is simply to review the financials each month and manage your manager.

The way we structure deals is the following:

50% down, 50% financed by us over 5 years

- Financing/debt service is calculated so that all expenses are covered for the 5 years, then you would own the property free and clear from that point forward.

What area are you looking to invest in? Are you open to becoming an absentee owner of a rental?

Kevin

I really don't want to be a remote absentee landlord. I would rather continue as a local absentee landlord :o)....What is the average sell price of a property purchased from you? What interest rate over a 5 year period?

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Originally posted by @Suduk N.:

I don't require electronic payment but push for it. Check is a pain in the behind.

There are so many free and secured options for electronic payments. Why would anyone use a paid service?

I mainly use Chase Quickpay. You don't need a Chase account to use Quickpay. I also use Cash app by Square (same founder of Twitter). There is also Venmo app but I dont use it. They also clearly show who makes what how much payment. You can also request the payment as a way to remind the tenants to pay instead of calling or texting them.

I also use this mobile app called DIYLandlord to manage and keep track of all my retals. It works pretty well to replace excel.

DIY LandLord -
https://appsto.re/us/7QxiN.i

Hope that helps.

The paid service that I use allows me to collect late fees. The late fees collected spend just like real money. I have spent $300 on the service over the two year period and have collected $2,000 in late fees during that same period. Just another way to make a little more money.

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Originally posted by @Kevin Moen:

Jaron,

I think there are a lot of good ideas on the posting. If you decide you want to buy and hold a rental property, I have a few that I will be selling using a model that will get the property free and clear within 5 years, and allow you to leverage your cash. Let me know if you want to talk in more detail.

Kevin

I am interested in hearing more about this. Will you elaborate please? Thank you...

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Originally posted by @Sonny Sach:

It pulls the money out of their bank account and deposits into mine on the date that you choose so theoretically there should be no lateness.

I would think that they would have the ability to stop it from pulling from their bank account through their online interface. Maybe they have a car repair, lost job, or a medical bill and it put them over their budget and they didn't have the money in the account. They would then not allow the draft or if the system drafted on an account with insufficient funds that would be a time when I would want a late fee applied. It sounds like this doesn't have the ability maybe?

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does cozy.co allow for setting up late fees?

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I use an online rent collection site called rentpost. In my opinion, this site is awesome! It uses a banking method of automated clearing house (ACH). The tenant uses their checking account and routing number through the tenant portal. It is similar to what is used to make a mortgage payment through a bank web site. They can pay using their checking account through smart phone, ipad, computer, etc. You can apply a late fee schedule and if they are late the site automatically applies a late fee. I have used the service for approximately 2 years on 10 properties and I have probably collected $2,500 in just late fees during that time period that I would have never received if I was not using the service. It is also nice to know when a tenant has logged into their account and you can just use your smart phone to know if they have paid rent or not...I think it is a great site!

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Originally posted by @Jaron Tibbe:

Originally posted by @Blake Densmore:

I would look for a 80k house in your area that you can rent for $950/month. Take 30k of your 50k as a down payment. Finance 50k for 30 years. Your principal and interest payment is approximately $300/month. That would leave you with $650/month cash flow on the rental house. Out of that you of course have to pay taxes and insurance, but you would still have some cash flow coming to you that would be more than just leaving it in the bank. The next 25k or 30k that you get...do it again.

If I use the 50% rule, wouldn't that work out to 7% roi? 950 x .5 = 475 - 300 for mortgage = 175 x 12 = 2,100 net. 2,100 / 30k = 7%. Or am I missing something?

I think that 50% rule is very conservative and you would actually end up with a little more in your pocket. It really depends on so many variables...how much maintenance has to be done, how much you do yourself, how many units you have, how many vacancies, etc. I am just thinking you will end up with a little more. I know that on average I actually end up with a little more in my pocket each year than the 50% rule calculation shows.

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All Forum Posts by: Blake Densmore

Blake Densmore has started 0 posts and replied 11 times.

Post: Tattoo. Bad idea?

Post: Credit+background check providers - any recommendations?

Post: Debt free with 50k to play

Post: Debt free with 50k to play

Post: Having tenants pay using internet?

Post: Debt free with 50k to play

Post: Having tenants pay using internet?

Post: Having tenants pay using internet?

Post: Having tenants pay using internet?

Post: Debt free with 50k to play