All Forum Posts by: Dan Perrott

Welcome to BP!  You have found the right place to learn.  Make sure you check out the ebooks and podcasts on BP.  They contain a wealth of information to help you on your journey.

Is there somewhere that I can look up Marion county court record information online when screening tenants?  I would like to see if they have lawsuits filed against them or if they have filed lawsuits against landlords in the past.  Also would like to know if they have criminal history.  I have never had issues but I wanted to see if I could have a more thorough screening process.

My screening service can conduct this for me at a fee but I was wondering if I could perform a quick lookup as well.

@Jason Williams 

  Welcome to BP!

In addition to what you said, our criteria includes no bankruptcy, credit score must be greater than 600, and no evictions.  You should have a pet policy as well - just make sure it is in sync with your liability insurance.  Use the same criteria for all applicants. Give them the criteria in writing.  We process based on first come first serve and the credit/background check fee is non-refundable.

We require 4 items when applying to rent.

1.  A completed, signed application.  It includes past history, financial history, references, bank info, etc.  If there is any false information discovered, then it is rejected.

2. A copy of a government issued ID.  We match the actual ID to the copy.

3.  Proof of income - paycheck stubs and/or tax returns.

4.  $25 application fee used to run a background and credit check.  Sometimes we run criminal, bankruptcy, and eviction reports.  All SSNs and names are verified.

With these items we can confirm the information.  If anything that does not meet our documented requirements (600 credit score, no evictions, 3x rent as income, etc), then we reject the application.  We use the same standards for all applications.

We try to turn every application into a non-emotional event.  By experience, gut feeling don't always tell you the truth (either good or bad), 

I don't do this but another landlord in my area charges $100 more for rent than the area average but will offer $100 discount for paying before the due date.  It's kind of a reverse way of thinking about it.   They do charge additional late fees on top of the $100 if they pay after the due date.  I don't know if it works but they use it all of the time.

For example - going rate in the area is $800.  They charge $900 a month due on the 1st.  If they pay before the 1st of the month, then they pay $800.  If they pay on the due date it is $900.  If they pay after the date due, then late fees are added to the $900. 

Just another way to get people to pay on time.  Don't know if it really works....

We invest in Buy and Hold in duplexes and SFHs.

• Location, Location, Location
• Cash Flow - focus on 1.5% or better  My best right now is 2.75%.
• Purchase Price - lower the better.   Solid properties with cosmetic needs not major renovation needs.
• Since we manage all of our own properties, we require that they are all within 10 miles of our home.
• Potential for Appreciation

Subject to partner approval.

Slept in until 9am!  Completed some paperwork.  Surfed BP and responded to a couple of posts, Went out to lunch with my wife at Panera.  We then checked on our property that  new tenants are moving into on Friday.  Took complete set of photographs of the entire property for keeping in the move-in file.  After that we went to half price book store to look for leisure reading materials - not successful but that's ok.  Went f to a new furniture store to browse. We then came home and now I am logged into BP to see what is happening today.  Today was a lazy day to do what we wanted to do - Nothing.  Great way to start 2015!

@Brian Faulkner I agree with @Shawn Holsapple that the Rich Dad Poor Dad books are a good read.  They give a great overview of the buying/managing process (mostly about multi's) but will not give you the information down to the contract, step by step detail.  They are great because they put you in the mindset of what you need to be thinking about and what questions you need to be asking.  My biggest advice is to not get caught up in analysis but to take action.  The best teacher is experience.  My second bit of advice is to get connected to a local group of investors and work at finding a mentor to help you through the process.  One thing about this industry is that there are plenty of successful investors that are more than happy to share their experiences.  Have fun and welcome to BP!  You are in the right place.

In my opinion (I am not giving legal advice) - shoveling the snow opens you up to liability if someone was to slip and fall.  I would leave it up to the tenants to hire someone to shovel the walks or do it themselves.  I would make it clear in the lease if needed.  Consult your lawyer and insurance company for their professional advice.

Also be aware of local laws that may require you to clear public sidewalks in some areas.  Also refer to your local government offices and your lawyer for legal advice.

I have never had an issue with the snow.  Tenants seem to help each other when needed.