All Forum Posts by: Charlie Moore

 Charlie,

Thanks. It's EALY not Early :)

Don't focus so much on the number of units. In every deal, I focus on the money that I can make - it's all about the profit, cashflow and the return on my investors' capital.

I've actually acquired 3,000 apartment units but in the process sold 2,000 and kept 1,000. I've been doing this since 1999 so it's not really that big of a deal. You can do it too but you need to study the basics, take a lot of action and network like crazy. If you can do those 3 things, you will succeed in real estate investing.

I am not an expert on this but I know a lot. C Class and D Class are different markets between one another. I have a home that most investors call a "D" market but I think of it as a "C" market since it is the better neighborhood with a "D" ghetto city.

I have two Section 8 tenants along with direct access to their Section 8 Case Workers. I have a pro active approach i.e. reporting to roach infestation and leaks ASAP as it it were an emergency. I screened and hired a great Property Manager and have a great highly experienced landlord / tenant attorney on speed dial if need be. I also have a couple local handymen for back up. With this approach you can scale the business and grow with a rough area. I met real investors in the middle of Newark NJ that utilize this approach and are up to 100+ units already. It has been working out great for me

Every city has its ghetto, every ghetto has its hood...Take a good look around you as there is a D Block near you - Eminem

By being a professional, dedicated slum lord. Apparently it works, if you're willing to have that be your life. 

@Charlie Moore I sold all my C class properties, which solved 90% of my problems. I only buy B or even A class now. 

I would rater have 10 diamonds than 100 lumps of coal.

Nope, collecting rent in-person turns into a full-time job after about 10 units. I have an escrow account setup at a local bank with branches in the neighborhoods I work. The tenants can deposit cash, check, money order, or anything else the bank will accept. The tenant provides the last 4 of that account number and my company name, and writes their address/unit on the deposit slip. My virtual assistant then goes through the images online of the daily deposits to reconcile payments in our PM system.

It goes back to the good old tenant screening process. Even though your tenant pool may be government subsidized, there are plenty of excellent tenants who are on section 8 for many different reasons who would be great tenants as long as you as the landlord hold up your end of the deal. Keep the property as nice as you would any other property and you may be surprised with the respect that tenants will give in return. Many section 8 tenants can be 10+ year tenants if treated well and if vetted correctly on the front end. Patience is the key here, might be 50 applications and interviews you go through before finding a viable tenant but it'll be worth it.

@Jeff G. Flexibility. Electronic payments 3 days beforehand don't work in these areas. You need to be flexible to collect rent any way it is presented, work around their weekly issues, and decide on what level of property you are renting. That goes for non-gov't subsidized tenants.

 War zones are where I started. I made money with them.

I made even more money with properties in D areas. Here's my first $1 MILLION profit deal in a D area which, luckily for me, transitioned and became a C area:

https://www.biggerpockets.com/forums/311/topics/644570-how-i-made-over-1-million-on-1-deal-after-6-years-of-headaches

I own 1,000 apartment units, and a significant portion of them are in C neighborhoods (and some in Bs and a few in As) and I have 50/50 split between section 8 and market tenants. 

I used to manage them personally but I put up my own property management company to ensure they are managed well.

Having said the above, I buy more Bs and As now than Cs and Ds. As and Bs have less work/less stress & more profit over the long run.

So, yes, you can succeed with properties in C areas and even in the war zones. BUT, it's a lot of work, a lot of stress, and to be honest, it's not for everyone, specially newbie investors.

@Charlie Moore a few :) not just sec 8, other programs similar but pay more