All Forum Posts by: David Dachtera

You're signing binding contracts. Having a trusted attorney review them before hand can be a lifesaver should any issues arise after closing.

Consult your attorney. Have the attorney review both the lease and the PM contract. Seek advice about actions you need to be taking to protect both your property and your interests within the confines of those documents. 

@John Halvorson,

What I like to do is scope out a home I've found that may be in distress and tell the neighbors (before the homeowner) that I am looking to buy a home in that neighborhood and ask might they know anyone looking to sell. When I get to them, the home owner might think of me as his "fair-haired boy" and want to talk to me. I get to meet people and it keeps me out of trouble, relatively speaking.

I don't let on that I may have awareness of the owner's situation. Some folks don't take that well.

My $0.02 ...

That seems backwards to me. Learn the game first - THEN buy a(n income) property.

If you want to go the business entity route, then learn that first, as well. Most folks think it's to limit your personal liability, and they're right. The part they typically miss, however, is the "control everything, own nothing" aspect.

The purpose of a business entity structure is to protect you and your personal property (estate) from the liabilities of your real estate investing business. Those who think an umbrella policy is enough miss one important point: if your policy has to pay out, that means someone took you to court, and you lost. At that point, your ENTIRE ESTATE  is exposed and subject to discovery in subsequent litigation.

I am not an attorney and this is not legal advice.

My $0.02 ...

@Kyle Johnson,

Check with your attorney and see if the seller may have misrepresented the property and its condition. You may be able to go after the seller and at least get a judgement, even if you never collect on it.

Also, you should have had an inspection prior to closing. Verify that the inspector reported the roof issues and, if not, see if there are any remedies available to you.

My $0.02 ...

 "Court-Based Rental Assistance Program". Found it via Google.

... hence, the phrase "for example". 

Purely my opinion ...

What we've been seeing is not inflation, it's corporate price gouging.

There was a report on Good Morning America today about breakfast cereal, for example. It was reported that even with decreasing sales, General Mills increased retail prices of it's cereal products. GM claimed that supply chain and other issues increased production costs. Yet, instead of decreasing production to match reduced sales they raised retail prices further reducing sales.

It appears that America's business schools are failing miserably.

@Ryan Marble,

So far, no one has mentioned that you're looking at getting into two businesses: Real Estate investing and Hospitality.

Real Estate Investing  relatively straight-forward.

Hospitality, on the other hand, is much more of a people-centered business.

Think of any hotel or motel where you have ever stayed. Consider all the amenities provided - the parking lot, the building, the rooms, vending and ice machines, bedding, towels, linens, toiletries, etc. Now, add things you might find in higher-end extended stay hotels like a fully equipped kitchen, pots, pans, dishes, flatware, laundry facilities, etc. Then, add in things like coffee supplies, packaged foods for breakfast, "lunchables", non-perishables, etc., ...

Rather than focusing on the dollar signs, focus on why travelers might prefer your properties to other choices available to them. Profits come from popular, desirable properties. Focus on providing the consumables, profits will follow.

Hope this helps ...

For properties where the utilities are off, this can help you discover potential plumbing issues:

At the home improvement stores, you should be able to find the fittings to make an adapter for connecting an air pressure tank or portable compressor to a hose bibb. You need a male quick-connect fitted to a female hose fitting. Even just a pressurized air tank can help you find if the plumbing will hold pressure. Turn off all the faucets and the shut off under the toilet(s), then apply air pressure to the hose bibb and open it. City water pressure is around 50 PSI in many places, so no worries. If the pressure doesn't hold or you notice water being forced out of any pipes, you know it may have plumbing issues.

For electrical, FHA inspectors use a generator connected to the power panel. I don't actually recommend anyone to do that. However, what you may be able to do is use a power inverter - 12V to 120VAC. Make a connecting cable so you can plug the output of that into a wall socket. Turn off all the breakers, unplug the fridge, and test circuits one at a time by connecting the inverter output to a socket and test other sockets on the circuit with a drop light or a lamp. If the converter reports an issue or the light doesn't come on, there are likely electrical issues.

Gas, of course, is another matter. Don't mess with it.

Just some ideas. Others may provide better input for you.

If you can find a class on home inspections, that might help you know what to look for. Especially around older communities like Cicero or any older homes, you want to look for what's known as "knob and tube" wiring - individual conductors, possibly uninsulated, strung inside walls and other spaces using ceramic "knobs" as insulating suspension. The tubes are ceramic pieces insulating a wire passing through a rafter, stud, etc.

Hope this helps ...