All Forum Posts by: Eric Carr

Also here's some advice when looking for a home. EVERYONE has their own way of doing it, like above. 

Define your criteria, beds, baths, lot size, number of floors, location, and price, and anything else. Be careful not to become too particular for the market or you will narrow yourself out completely. Look at the big overall things, the characteristics of the home that you cannot change. And when you find the place, jump on it. You're doing the right thing by getting educated and figuring out what you want.

She wants you to sign a buyers agreement. Like others have said, if you like her, sign it. It doesn't obligate you to anything except that if and when you buy the home, you will use her. It's insurance. She will spend her time and money showing you places and it's just insurance and assurance for her. More assurance. Many agents have been burned in the past and it also shows that you are serious 

You will be signing more contracts once you find a home you want to buy!

I allow pets, I have 4 dogs myself. Kids cause more damage, adults often do also. 

I do not charge pet rent, but I do collect a larger deposit. In CA, it is illegal to collect a non refundable deposit. I don't do it in Texas either. Nor other states I own rentals. But I do take a larger deposit to cover anything should it come up. 

I screen the tenants and the animals. I do not discriminate against breed (I have 3 Dobermans and a Pit Bull) But being experienced with dogs, I check them out also. They must be spayed/neutered and licensed. Make sure that you have a solid pet agreement to accompany your lease. The tenants have to know what their responsibilities are, many know, always best to have it in writing. 

It's not only a buiness decision for me but also a human one. 

The lender will need a good reason, growing family and needing a larger house, job relocation. Or that you want to buy a 4 plex and invest. Since you will move into the unit, you are within FHA guidelines.

You either need to come up with a really good reason that shows you are compelled to move, or just tell the truth and see if that works. It's good to have a lender who has experience who can help you come up with legit ideas. But you intend to live in it, so no fraud. Go get it! 

I read books and learned by doing. Mentors are priceless, books and knowledge on forums and the internet are almost free. As far as gurus, just trust your gut and don't over pay. I've never paid anyone, we all know there are a lot of cons out there promising a lot and charging proportional amounts

With the 401K, the admin is taking a percentage, and each mutual fund you invest in is taking a percentage. Then there's inflation, the chance that taxes will rise, and also the fact that we all hope to retire in a higher tax bracket than we are now, which is where you will be taxed when you take disbursements. There's also no guarantee that your money will be there. In 2001 and 2008, I saw people lose 40%+ of their balance. That is no good for anyone about to retire or retired and depending on the 401K paychecks. And as far as the employer match - do you really think anyone gives money away for free?  I've read studies - I realize anything can be fudged - that employers that match tend to pay .90 to .99 cents per dollar. But what is for certain, is that employer matches are tax deductible by your employer - so it's essentially tax payer funded. Wall Street is tax payer funded also - remember the bail outs? 

Guess who's making money on your tax deferred dollars? The 401K admins, Wall Street, and the government when they receive their fat deferred tax payout. 

Your 401K, you hope, will be funded enough to carry you through retirement, but again, it is not insured and like most things, there is no guarantee. For me, I choose real estate and to use my money now, today, to buy and invest in real estate - since that's what we are all here for. RE will never go to 0, people will always need a place to live, and RE has the potential and all likeliness to outperform a 401K all year long, can provide infinite returns, and will print money for generations. 

My opinion is the 401K is for people who are going to work as an employee until 59 and a half, at least, and don't want to educate themselves on where to put their money. Which is fine, many people just want to focus on their career and hand that responsibility to someone else - which is scary as hell to me

Other alternatives is that you research index and mutual funds, maybe a dividend paying life insurance policy. Create your own 401K like and 401K beating investment choices, without ALL the fees

Keep the deposit and first months rent if you have that also. They signed a lease and are liable to fulfill the requirements. 

Keep the deposit and tell them they better hope you don't go after them for damages, aka rent money. 

You are correct in your understanding of having to start the marketing and screening over - and time is money.

I've got three Dobermans and a pit bull, all rescues, all sweet. I hope peoples mentality changes. Also, for anyone reading, there are insurance companies that will insure "aggressive" breeds 

Keep it simple. Vacancies and turn over gets expensive. In CA, it is illegal to charge anything non refundable in the way of a deposit, aside from actual rent. Keep it simple, charge a deposit equal to a full months rent, and make applicants sign a 12 months lease. The only way I'd do it the month to month way is if the rental was in a highly transient market and the 12 month commitment scared off applicants. Turn over is expensive. Most renters expect a 12 month lease, just give that to them 

No credit, no rental history, no bank account... wants to pay in advance... My market is different and I would not rent to them. 

While those are all major concerns, no one knows exactly how this would turn out, but like I said, it's not something I would take the chance with in my market.