All Forum Posts by: Eric Morel

I found an agent on bigger pockets.  She is an investor herself and she is willing to help me with my vision.  I tried working with other agents and it was more on their terms.  With the ability to do a video tour, get an inspection, and to then counter if more repairs then you thought.   You need the team, but the team needs to see $$$ to work with you.  I have given my realtor my parameters.  I have not closed a deal yet due to I have todo sellers finance right now.   I am 6 mos away from using other finance sources.  I am hearing more Nos, but just need one yes to get my 1st deal.  Breaking into real estate is not easy, but if you have a good why it is worth it.

Mine is to help with the affordable housing issue. I look in D and C neighborhoods for 1% houses that are in good shape. I am brand new, so not ready to manage an out of state BRRRR as of yet. Set your boundaries and find a hungry realtor. That realtor will know people in the area. They may be able to help you find contractors, inspectors, finance companies, and possibly tax/legal help. If they are investor friendly, they are probably investors themselves. Mine is a House flipper. She may flip a home she can sell to me to meet my needs as well.

I was very imaginative  Called mine Morel Properties LOL

You created your own monster.  You included things in the rent at one rate and then removed them and expected the same rate.  Most  renters will blk on that.  Now of course if under market then most will remain at the residence.  You know the old saying. Give them an inch they take a mile.  I love dogs and would allow them, but there would be a pet deposit and pet rent.    That would be budgeted incase they cause damage and the renter wont fix the issue.  Once you allowed the dog then the tenant decided to get more pets.   I hope you had them sign an addendum or something that changed the rental agreement.

@Bruce Woodruff Where would that be based on the current rates of inflation?  The average rent has increased 300 to 400 per month.  The average home has increased in most areas as much as 100 to 150K in value.  Things are nuts right now.   I am looking for ways to offset inflation and set my self up for a good financial future.  Real Estate is the tool I feel will get me there.  There is a price to pay to be in real estate.  Time, Money, countless hours of hitting brick walls, and just the grind involved.   I am willing to pay it and have the money to play this game.

Not everyone out there can say that. Five years ago I could not say that.  I was blessed to get into a field where I make an above average wage.  I dont bank, but make more then my living expenses.  It allows me to put a certain percentage of my income towards investments.  I bet if you look at the USA coming out of the pandemic approx 70% of Americans are unable to say they have extra money.  

You do know moving cost money.  If you are fortunate to own a home and have appreciation, you can sell and use the proceeds to pay for something to downsize.  If you rent, you need 1st and last months rent plus security deposit.  Some dont have that.  Then their rent is raised from what they could afford to a number they cant afford.   I have seen threads on this very forum that landlords have asked how to evict a tenant to market rate.  Nothing wrong with that since this is also a business, but this is one of the reasons they become homeless.  How bout the millions that were unemployed during the pandemic, Not all of them received stimulus, unemployment, or funds at the same level they had prior to the Pandemic. 

Part of why I decided to get involved in real estate is I want to find ways to help people find affordable housing while still making profits for my business.  If I make a little less so be it.

@Bruce Woodruff So the worker should work 2 or 3 jobs, so the business owner can keep a business that isnt making enough money to make up inflation? Basically we are putting the needs of one over the needs of many.   I disagree.  Wages should keep up.  All businesses should be modeled to meet that if they have employees.   If not, it is not a good business model to begin with.  I dont agree with raising min wage to like 15 per hour, but a wage increase yearly to offset inflation should.  We live in one of the richest countries in the world. Nobody should have to kill themselves just to put food on the table.  Nobody should go to be starving.  I did that many times when I was a kid.  D

I am working on one now.  It will be my first property.  It is difficult to find someone that will consider it though.  I have offered in a few cases before today and turned down before I could even explain the deal. Found a condo with a cap rate of 8%.  Needs miner repairs, but rentable in the condition it is in.  Rents for 900-1000. Purchase price is 79K or less.  In a 2.5 star neighborhood. If it doesnt work, it doesn't hurt to offer.

@Bruce Woodruff They should.   

True that Bruce. They should though

The challenge is everything is going up and wages are not keeping up.  Rents have increased quicker then wages.   Then you mix in gentrification and affordable housing is becoming more and more thin. I agree that people can improve their situation, but it is tough with the type of increase that have happened in the last few years.  I own a home.  My taxes increased 20% YoY.  It is the highest level that my county bylaws allow. Granted I live in one of the fastest growing counties in the US (Denton County, TX).  The prices have increased to reflect that as well.  This will leave people behind.  It is sad.

I am not a college student, but due to the fear surrounding COVID 19 I can see a change in someone's behaviors.  This  could change their renting preferences.