All Forum Posts by: Eric Petersen

How do I start investing in real estate? - Part 1

Guys, that's a huge question.

In reality it is many questions:

Do I want to operate as a landlord myself? 

How much capital do I have?

Can I trust others to do work?

Do I have it in my heart to "be mean" and kick people out?

etc

etc

The list could go on forever.

I suggest first figuring out your WHY first.

Why do you want to do real estate?

My why -

I want control over my investments.

I want to grow my investments at a faster scale.

I can utilize so much experience already in the field to follow tried and true strategies.

The path to creating my future family, spend the most times to my kids, and traveling the world is through this prong of my investments.

I want to replace terrible landlords that exist and instead be the most fair landlord I can be.

Figure that out and then it is easier to get into the deeper questions.

One of these days I'm going to create content around a guide on figuring out your why around investing in this space.

Until then, do it yourself

Hit me up if you want to chat about your why and I can give you 15 minutes or so.

What is your why? Not only in real estate or even investments - and just in general.

I was at a meet up where someone was talking about Zoomeral. It sounds awesome. And then I realized how many people were talking about all the commissions they were making referring people. Then I realized I didn't actually talk to anyone that had the line of credit open . . .

I don't have all the answers guys. I don't know if this product is good or not. What I do know is there seems to be a lot more people pushing the affiliate links that there are actually using the product.

I do know any positive review about Zoomeral reads like an infomercial.

And I do know most of the people I trust in this market have told me if it is legit, then it is worth waiting to see if the business model develops into something right. Because right now it seems to come across as kind of weird.

That's my two cents. 

Be safe.

@Daniel Hyman thanks for the response. That almost seems like it ruins the spirit of the deduction but hey, I'm not the one who makes tax policy.

Hey all you cool real estate people,

I searched on something that I thought was an obvious question to no avail finding an answer. 

I'm trying to figure out how to track miles for tax deductions. The biggest thing I'm trying to figure out, do I count the miles coming back from my rental property after going out there for maintenance?

My property is 20 miles away, I am going out there for maintenance straight from my home, after I do the work, I am headed straight back to my home. Does that mean I mark in my log I traveled 40 miles that will be used for the deduction (there and back) or do I log only 20 miles (there and that is it)? The internet cannot seem to address this one question.

Thanks!

@Chris Mason you make me laugh.

Hey my fellow cool people. 

I've got a dilemma that I hope the good people of the forums can help me work through.

I bought a townhome 1 year ago that I lived in but also I rented 3 rooms out to individuals as well. I bought it with a 5% down conventional loan. I'm moving out soon and will fully rent it out.

Here I am 1 year later looking to buy a brand new condo that won't be completed until December. I'm currently in the pre-approval process. I've learned that in order to get another 5% loan on this one, the underwriter wants a good reason for the new loan. The general reasons for getting this new loan don't really work for this case:

1) Moving closer to work - I'm not as the condo is within the same city as my day job
2) Upgrading the property - not true as I'm going from a 1800sq ft townhome to a 1000 sq ft condo

Is there anything else I should consider in what an underwriter would consider a good reason to approve of a new 5% down conventional loan? The only thing I can come up with is that it will help shave 10 minutes off of my commute due to traffic patterns being more conducive.

What have you done in the past to find truthful yet creative reasons to allow for new primary resident loans even though you have many others? Any other techniques you suggest? 

Hey guys. I would love everyones perspective. I'm kicking out my first tenant! Long story short, he called me last one telling me he needed to split the rent, so I did! I sent him a waiver for the late fees and mentioned next time late fees would apply if he is late in payments.

That day is today. I sent him the following message and I'm curious, do you like my strategy? Would you do something different? Am I missing something? I changed the tenants name to BLAHBLAHBLAH for kicks and giggles.

Hey BLAHBLAHBLAH,

The wording in the notice is harsh (attached), that's how these legal documents are.

Basically it says I haven't received rent and the fixed utilities from you totaling $435.00. The Cozy payment failed and I sent you a Venmo request for the full amount due as well as a text letting you know about the Venmo request. The Venmo request was left unanswered as well as my text so I am taking the next action to request the full amount and the late fees that are stated in the rental agreement.

Basically it comes out to:

Rent $400.00

Fixed Utilities: $35.00

Late Fees: $80.00

Total $515.00

BLAHBLAHBLAH, you have three options as spelled out below:

1) It seems to me you are having a hard time affording the place, if that is so then we can work out a deal. Rather then going through the pain of not knowing if you can afford the rent month to month, we can settle on you moving out by Sunday, October 22, 2017 11:59pm. I would drop all late fees and fixed utility costs, and I would keep your security deposit to make up for the late rent. If that move out goes smoothly and you don't leave any messes or damages then I won't charge any additional damage, clean up, or late fees.

2) If you choose to pay all late fees that accumulate with the rent and fixed utilities then obviously we would continue with our agreement as it stands. Keep in mind that the $515 is what is due today, according to our agreement, $5 is added to the total per day.

3) If you decide not to take the deal above, or pay the full amount plus late fees, then I'll be forced to start the eviction process at the appropriate time. Eviction processes are nasty as it would create a judgement against you from a court requiring you to pay me the money owed, plus damages, and you would have that placed on your legal record preventing you from renting in the future and taking out any favorable loans.

It's up to you BLAHBLAHBLAH, get back to me.

Eric

Likes. 

@Elizabeth Colegrove

Thanks for the knowledge. You rock.

Are they still living in your property while you are taking them to court? You may want to look at getting them out of there before any crazy action against them, I can see them doing a bit of damage if they knew you were going to take them to court.