All Forum Posts by: Dean H.

@Destiny Prince

Local i'd probably say do the deal first. You can drive by and assess the property, area, traffic , noise, etc and probably already know someone that knows someone to hook you up on the rest.

Out of state no way without a great team. Hard to drive by the property on a quick beer run and make an evaluation when you don't have a clue about the area, schools, suppliers in area, which streets are safe after dark, etc.

Funding, well it all depends, just make sure you know you can and how you can before you waste a bunch of peoples valuable time. Nothing makes a team disappear faster than someone not being in a position to do what they say they will be able to do.

Carry on 

I'm not going to agree with the masses. I have numerous class C rentals in Tennessee and a couple of them are duplexes. Duplexes in Class C neighborhoods are tough, there are just too many single family units available to make them attractive to many qualified tenants.

In this situation I would talk her and discuss raising rents to market over an 18 month period and thank her for being a great tenant in the past. If she doesn't agree  with raising the rent i'd give her 6 months to move out so I didn't have an empty Class C unit thru the winter. I'm a cash flow investor with no debt and an 8 year consistent rent paying tenant beats the crap out of a revolving door of trying to find a reasonably qualified tenant to replace her in this class. She doesn't know you, she's scared. and trust me if she's been there paying for 8 years she is golden.

Go ahead chew me up, I'm just a crabby old man with an attitude. lol

Dean

lol, long week

Tough in this area right now. Perhaps go inquire at a real lumber yard or local hardware store in the area of your property and see who is between jobs..... maybe

Sometimes I have trouble understanding the whole yellow letter strategy. I own a nice portfolio of " B-C " class SFR homes that we have rehabbed to rent long term. Today's mail contained 2 " postcards / yellow letters " and for the week I think i'm nearing 30 wanting to buy my homes. Today's best had the " how much longer till I hear from you " " thanks for keeping this private " " I've recorded a brief message" " I've done all I can to reach you" BS. I confess I have driven areas I invest in and mailed personal letters to owners of properties that obviously are not productive assets. But my gripe is with the " property you recently purchased " am I wrong to assume if I recently purchased it that I might want to keep it, you know, maybe the reason I " recently purchased it " is because it fit in my strategy. Do that many people change there mind in a couple months about an investment that they want to dump it ? I used to respond " what do you have to sell " but most of them have just marked up stuff I can find on my own......end of rant

I'm soundly in Russell and Jays camp on this. 

In the last few years I've averaged 3 offers a year, bought them all with cash and closed as promised.

All were carefully chosen for the rehab to rent strategy that I'm doing.

I absolutely refuse  to waste my, or anyone else valuable time chasing all over creation looking for a short term gain.

I'm old, slow and methodical in my pursuit and fully expect to enjoy the fruits of this attitude for a long time.

I'm a " binge " dweller on BP. When I'm busy I just disappear for awhile and like wise if time allows " poof " I swing back thru for awhile. I have a weekly 3 to 4 hour drive and lately I have been using that to listen to podcasts. It is amazing how much knowledge is available here and I sincerely hope that what little knowledge  I contribute is valuable to some.

@Account Closed

Gregory, I do some things just plain wrong! One of which is to just throw all the real estate income in a savings account. I am so bad that I pool cap ex, repairs, taxes, you know the stuff the experts say to have in separate accounts ready to deploy at a moments notice. If I have a lucky streak I rob all the cash and buy another property if things keep going wrong I hold back till I feel like I'm caught up and see if there is enough to take another stab at it. Mind you I do have the resources to make emergency repairs and have no debt on my rental properties so I do not fear vacancies like many do and the pool of cash builds back quickly.

I suppose if I was organized or not so darn busy I would do something that yielded better returns but hey it works for me.

I do this the slow boring methodical way but so far so good.

I know this didn't answer your question. I just thought id let you know that there is no cast in stone way. Just rat hole it somewhere for when you need it.

@Brian Tran I invest out of state and when I think about it I have never personally looked at any of my units until after closing. I do rely on a bird dog, my property manager, my roofer and my 1st ex wife's second cousin ( only kidding on the last one ) for viewing, drive byes, prowling, and an occasional break in. The key is a good team or if your buying near you just make sure your offer contains a good inspection and due diligence period. If such is the case I say offer away if you are positive you can actually close ( have the money or the actual ability to get it ASAP ) if everything is right. If you waste everyone's  time too many times they will justifiably slip away. 

@Raimel Diaz I have bought a few auction properties. They are very hard to do without a pot of seed money that allows you to close and get possession.  I do as much due diligence as possible and if I like the odds of success I place my bid. If I have the high bid I break in at closing ( never have seen keys at closing ) and see if  I really won or lost. Then and only then do I figure out what to do with the asset ( flip, brrr, sell ) and decide how to finance the decision.  In the future make sure you are prepared to follow the bidder agreement before placing a bid.