All Forum Posts by: Dave Kush

Agree w Jordan. Sometimes people bring their problems with them. Send the handyman. 

If there is actually an infestation, that's probably on you to repair. 

Also, 3 days in.... It's important to set expectations with the new tenant. Be very careful not to accept any responsibility unless you actually have responsibility for the situation. I find that how we respond to that first call, especially when it comes so soon after moving, can set a tone for the rest of the relationship. 

I would take the 3-1 date if you feel good about the tenant.

May depend on state, so double check you can confiscate the deposit for that. 

Personally, I just want them to pay rent or leave so I can get it rented. If this tenant has been paying for ten years, maybe just allocate some of the vacancy reserve for this and move on. 

What is the cash on cash return as lease? 200 for the door is not too bad, depending on what you have into the property. 

I ask because the first thing that came to mind reading this is why you are deviating from the original plan to lease it at market rates.

If getting rid of it, personally like the lease option over straight sale. 

I think this depends on who you expect the buyer to be and how you are marketing to them. 

If the buyer is an investor (who may fix and flip or rent out) might workout to have the current occupant allow access and give them a small gift card. 

If selling to owner occupants, I would probably not do this, unless I felt really good about the occupant. I typically sell to other investors 

Here again, quality photos, videos walkthroughs and overall marketing would be a key factor. 

Many good replies here. I will just add, one thing I have done in the past is present two offers. This is not the first step, this is after you've built a rapport and they've expressed an interest in selling.

One is an all cash offer that I could actually afford with bank financing and still meet my investing objectives of 10% cash on cash return and $250 per door. The purchase price is obviously going to be pretty low, and probably much lower than the asking price.

The second offer is a seller financed offer that allows them to get close to or the entire price that they are looking for, just under seller financed terms.

so for example, I might offer 60,000 cash, and then 100,000 seller financed at 0%. 

Once you establish that they will consider seller financing, it's a matter of finding the deal that works in terms of the amount of cash they need and my terms. In the above example, perhaps the seller would counter with 100,000 at 3%. As long as you can make it work with the noi, you just keep adjusting the terms.

I skipped all of the relationship building items because other people have mentioned these above. Just to reiterate though, building that relationship is the most important part...then you make the offer. 

Nice to see Mises get a mention. 

Used to teach econ, and that's all true.

More importantly, is completely true in the real world. 

Focus on serving people first and you will get wealthy. Focus on getting wealthy, and you're likely to end up struggling. 

This reminded me of one of my favorite quotes about partnerships.

"if going into business with a friend, always have a written agreement, because by the time you need it, you won't be on speaking terms anymore."

I have done some very limited investing with friends-family, but they met the good criteria you listed, and that's why they worked out the way they should. 

Thanks for this post. Gave me a chance to run through my current and past relationships to make sure they are on track.

One more thing....

The agent and lender locator tools on this site are very good. I've been VERY happy with the referrals I received from BP. 

I'm in Chicagoland, but south burbs.

I read and researched a lot, but ultimately I got started by following the steps in this book: The Weekend Millionaire's Secrets to Investing in Real Estate: How to Become Wealthy in Your Spare Time https://a.co/d/gLYA4Sj

They give you the step by step. It works. Other methods do too, but I can personally vouch for this one. 

David Greens BRRRR book is the perfect follow up. A little more updated and detailed.

Good question. 

I think one thing to consider is how bad the place is. As the landlord, you could have liability for issues related to condition of the property. If you need to make significant repairs or updates (or clear out some of the hoarded material), but she's mentally not ready for that, you could find yourself in a tough spot. 

Conceptually, I see where you are going w this: if she's good with the property as-is, then you could have a nice long run play on your hands, if the numbers work. Just not sure you can do that without risk due to the property condition.

That said, I am thinking of a true hoarder, like the sort with a mental disorder that makes it nearly impossible to get rid of things (like the old TV show). If I've misunderstood and she's just a person w a lot stuff, could be workable. 

Be careful with it.