All Forum Posts by: Damaso Bautista

@Breelon Bryant

I believe there may be a portion of investors that may be over extended, but the savvy investor who planned correctly for a rainy day is flush with enough cash to get them through the drought.  

These are also the investors that will be competing with the new investor trying to break in the market when these overdrawn investors fall.

I don't think it will be like what happened after 2008 but there may be some properties coming available here and there. 

Don't underestimate the amount of investors sitting on cash waiting for these opportunities.

As far as answering maintenance calls.  There are laws governing landlords and requires that the locations for rent need to be habitable.  So if the heater went our during the freezing temps that just happened a couple of weeks ago, you are bound to fix that.  Being the landlords are held to a higher standard according to the law you have more to lose by not fixing if you do.

I hope I answered your question.

@Andrew Casal

I am answering this from a life experience perspective.  

Nothing I ever did in life was easy.  It took alot of work and alot of time.  If you are patient and let your work grind away, then you will see the benefits later on down the road.  When you are thick in the middle of something it is hard to see past where you are at but time continues to run and the work you do during that time will show. The results come either way.  You can not work hard and see the outcome or you can grind and see the outcome.  It is your choice.

Focus on the long term goal and throw away any small knocks or small bumps in the road because they are going to come.  Don't focus on every little thing that doesn't go your way.  

As long as you are making progress however slight it is better than standing still.

Nothing in life is given to you but you can go out and get whatever you want.  It just takes time.

Good luck!!

@Austin Warford

1. Have a high paying job for two years

2. File taxes for two years on that income

3. Have H/R able to give you an income verification that you job and hours are not in jeopardy due to COVID

4. Have a great credit score

5. Have money in the bank to cover 25% down payment, closing costs and 3 to 6 months reserves

6. Submit your information to a mortgage broker to see how much home you can afford

7. Look for a property that is a good investment based on the numbers (look at Brandon Turner video on youtube how to analyze rental properties using the 4 square method)

8. Put in an offer on a house/ get the offer accepted/ go into escrow/ do your due diligence/ close on home /get insurance

9. Make any repairs needed to make rent ready

10. Advertise the home for rent based on what the comparable locations in that neighborhood are 

11. Accept applications and review them for credit score, income requirement, past rental references

12. Accept a renter/ fill out a lease/ get security deposit and first months rent on the day of signing/ give them the keys

13. Wait for the first of the next month to collect the rent

I know your post said people say alot and teach nothing.  There is alot of details that need to be experienced to be learned and I don't think a post can say it all.  If you have specific questions about certain things ask.

When I did it the process isn't that complicated.  

Let me know if you have more questions.

@Wyatt Johnson

If you were sleeping your morning away, then I would be worrying about it.  As long as you are getting your W-2 career work done then that is important. 

If you are working the rest of the day and making sure you are going forward and making progress I believe that is what is most important.

If you find your morning routine is taking away from your progress ( something measurable) then you can adjust accordingly.

I wouldn't change on feeling or conjecture.  Personal care is very important for health both physically and mentally.  

In my opinion keep doing what you are doing until you can't because it is hindering your goals whatever they are.

Good luck! 

@Daniel Fitzroy

That is great! Now the hard part is to use that $500 a month toward something positive.  Very easy to say very hard to do.  I speak from experience.  Discipline is the key.

Good luck!

@Kevin Lanphear

Do what makes you the most amount of money the way you know how.  Each person is different, there is no right or wrong answer.  

If someone is comfortable taking that money and going to Vegas and putting is on black everytime, that is their system. 

Believe in your system and go with it.  

It seems to me like you know how to make money using other investments besides real estate.  Keep that diversity of investments going.  

Over a lifetime you will be happy for it.

@Dennis Ulrich

  If you want to protect yourself get her and her guest to sign a side letter detailing the situation and that allowing this one time occurrence is by no means giving this guest residency and that they agree that he will be moved out by a certain date. 

Check your states landlord tenant law because this is what your biggest headache could be.  After someone lives somewhere for 30 days, the law at least here in California means that this person has established residency and can only be removed by eviction.

Good luck!

@Alexis Brown

Hey Alexis,

When I started out this is what I did:

Did a walk through with my close and trusted friend who is also a contractor. We went through and wrote down everything that was needed to be updated on the home.

I start with major systems:

Roof- does it need to be replaced

Electrical- has the panel been updated and has the wiring been updated

Plumbing- has it been upgraded to copper or is it still galvanized steel

HVAC- does it need to be installed or updated

Water heater- does it need to be replaced

Then we looked at the cosmetic and value add items

Does kitchen need to be updated

Do bathrooms need to be updated

painting interior and exterior

After walking through, he has been in the business so long that he gave me a cost for each job. The cost of a job is impacted by many things.

If you owner build and hire out it is less expensive then a contractor doing the whole job for you

He gave me ball park for all options. He did all my electrical because he was giving me the family price and he is also a licensed electrician.

from this walk through I was able to make a pretty good working budget.

I worked off of this budget but still went over due to things that came up.

I hoped this helped.

@Fernando Domingo

Depending how old the property is, most kitchens were enclosed back in the day.  If you can remove the wall that separates the kitchen from the livingroom and make that one big open room, with an island to breaks up the space.  This is an upgrade that many people are looking form nowadays.  

Good luck!

@Mike Chillinsky

I have a 21 year old and and 19 year old.  Both of them showed no interest in real estate.  I am pretty good at forecasting so I have a sneaking suspicion in about 3 to 5 years when they hit the workforce after graduating from University, they will be hitting me up about real estate because Daddy's gravy train will have run dry. 

That is the time I will truly invest in their REI education. Until then I am not wasting my time trying to impart knowledge on someone who is not interested.

I will always be here as a resource to them but I will never force feed them anything.

I know that is not what you were looking for but it is just my perspective on parenting young adults.