All Forum Posts by: Henner Mohr

It is odd that libertarians do have such a tough time in the polls. Maybe that will change in the near future.

I would agree with MikeOH about the entitlements.

In Denver tenants will use tricks to abuse the government.

For example one tenant explained to me that he has plugs in his ears so that when he goes to the unemployment office he can tell them he is discriminated against and can't find work. This apparently allows him to continue receiving money without having to follow all their rules. He basically works any job for a few months, quits and then draws a bunch of employment. Essentially he works only half the year.

I told him what he was doing is illegal and he didn't care. He said being in jail is like being on vacation.

Don't forget that your making it a bit harder to sell converting from 4 to 6 units. Banks consider anything over 4 units commercial property and a new investor will need a commercial loan to buy your property. Commercial loans usually require more money down. If you keep it at a 4 unit you can also get owner occupied buyer investors with residential loans.

I think studying for your license is a great way to learn about the business and it's regulations.

Depending on your state, having a license can be a hindrance if you operate rentals. With a license you may be subject to additional regulations when dealing with rental property where without it, on property you own, you won't need to worry.

You won't need a license to make money in the business however.

It all depends on the market.

When things were hot flipping made the most sense because you could look for the ugly duckling in a neighborhood and fix it up and know you would sell it quick.

Now buy and hold makes the most sense since selling is hard. You should consider buying a good deal now and then renting it out until things get better.

If you are new to investing you should get training before jumping in.

Originally posted by Steve Babiak:

Originally posted by Henner Mohr:

Interestingly I asked about this very issue and you can keep all of your clothes in trash bags over night in the hotel in the tub or shower with the top tied.

The bugs can't crawl up the bag sides. As long as you shower when you wake up you shouldn't have any on you and you won't take them home since they can't get in your clothing.

What about that stuff called "luggage"? The bugs can hitch a ride with you in your luggage.

Hmm... I suppose you would have to transfer clothes from luggage to plastic bags before entering the hotel. Then leave the luggage in your rental car. Take the trash bags with clothes up to the hotel room and go from there...

Also I would note that I thought bugs were visible too but actually when they are born they are very small and white. (Usually impossible to see on the mattress.) They get their color from actually drinking blood and growing larger. Adults are easy to spot but juveniles are not.

Checking the mattress is a really good idea because the small blood spots are a giveaway!

Interestingly I asked about this very issue and you can keep all of your clothes in trash bags over night in the hotel in the tub or shower with the top tied.

The bugs can't crawl up the bag sides. As long as you shower when you wake up you shouldn't have any on you and you won't take them home since they can't get in your clothing.

Around 20% of my portfolio in Denver has bed bug problems. Just a couple of weeks ago a house rental was infested, this is a first for me usually it's apartment buildings.

Apparently the lady was running a daycare out of the property and I had no idea. In any case she became infested with bugs and didn't know what they were. Only when the doctor found them in the clothes of her kids did she learn of them.

In any case I spoke with the bug exterminator that I hired and learned some very interesting things that I thought I might share. This is good information for landlords and tenants..

They are very difficult to get rid of. In the Denver climate they ask that you bag up all of your clothes and wash them in very hot water. Then you pour bleach/water mix into tubs and put all of the hangars in the mixture. (My tenant did this and was amazed at how many bugs floated up.) Furniture is discarded, mattresses are covered, the property gets 3 separate treatments and then maybe you get rid of them.. only if the tenant really cooperates.

I learned that people bring bugs home three primary ways:
1. Going to movie theatres. The bugs like the dark and sit in the chairs moving from person to person. They don't bite you they just travel this way. People with bugs sit down and the bugs crawl off onto the movie seats and then crawl onto the next person to go home with them.
2. Restaurants and airplanes are another popular means of travel for them. Again from the seats..
3. They travel up to 50 feet looking for meals and will travel through apartment buildings, infesting one after another.

Most apartment buildings in Capital Hill in Denver have bed bugs. All of the ones I had certainly did. (Not every apartment but always a few.)

You cannot just turn off all utilities and let them freeze in the winter. They can survive at least a year without any food.

There is now a dog service in Denver you can hire that will sniff a residence and detect them before you make a purchase. I think it's a great business idea.

The Bed Bug business is up fifty percent in just the last two years alone in Denver. The bugs are also becoming increasingly resistant to treatments and thus alternative methods need to be devised to get rid of them.

I hope this helps anybody out.

Sure let me know how to join the group? I don't see a link on your profile?

I agree that if a bank is receiving payments on time that the due on sale clause will rarely be invoked. However there is still a risk since it could happen...

I have had newbie investors ask me about protecting themselves by moving property into LLCs. Sometimes many of them are in OO loans (first rental property or duplexes, 4plex) and they want to rent out the property.

I simply explain to them that the lender could "possibly" invoke the DOSC.