All Forum Posts by: Cara Lonsdale

I concur.  If it is an oversight, the 5 day notice will just serve as a reminder that rent is due, but if the tenant is being squirmy, you haven't lost any more time on the eviction process.  I have a tenant right now who is going through a bad year, and has been consistently late for the past 6 months.  But each month, like clockwork, I send out the 5 day notice, and about a day or two later, I receive the rent.  

What other numbers or contact info did he provide on his rental app?  If something has happened to him, maybe there is someone else that can go by the property to check on him.  Did he leave an emergency contact, or an authorized person who is able to enter his property?

Is he on social media?  Maybe check there too.  If he's posting pix at the bar living the high life, then he is probably being delinquent.

 Congratulations on becoming a Realtor!  What an exciting, and scary time....filled with opportunity for the taking.

Don't get caught up in the traps of spending money.  There are MANY things that you can do with grass roots efforts, that will pay off for you if you commit to them.

Are your title companies there agent friendly?  Here in AZ, title companies have many resources for agents like open house guest registers, free marketing materials to use, and other online tools.  I would start there.  Home warranty companies also offer resources.  Check out Old Republic Home Protection.  They have a newsletter full of content that you can customize with your contact info, and print off and distribute.

Then, I would pick an area that you want to farm. start small, and add additional sections as money becomes available.

If you are really eager, and ready to work for it, print off the most recent comps of your farm area (or the newsletter as mentioned above), and go walk the neighborhood.  NO ONE does this anymore, so it is a PRIME way to get your face in front of people.  DO NOT ACT LIKE A SOLICITOR!  But rather, introduce yourself to them, tell them you are the community Realtor specialist, and you wanted to offer them a copy of the most recent comps just in case they were interested.  Often times, this can start a conversation that turns into business or a referral for you.

By offering them an item of value, you eliminate the opportunity for them to slam the door in your face.  You also are putting a face to your name, so when they get any marketing materials from you, they can connect.

Then, go preview EVERY property listed for sale within your farm area.  Let those sellers SEE that you work that area.  YOU are the area specialist.  Don't leave out FSBOs!  They are extremely important to be face to face with.

If your office has any listings within the community, offer to do an open house for them.  A few days prior to the open house, take an open house postcard and walk 6-8 houses on either side of the house, and the 12 houses across the street.  Tell them that you are hosting an open house, and you want them to think about anyone they know who may be interested in living in their neighborhood, and invite them to the open house.  THis does MANY things...First, it gives you yet ANOTHER opportunity ot have face time with neighbors.  It shows them you work hard in Real Estate AND CARE.  And it puts you at the top of mind awareness that is needed so your name comes up when a RE need surfaces.

At your open house, talk to everyone, even if they are looky-loos.  Send personalized, hand written thank you notes after your open house to everyone that attended.  Also, have your newsletter on hand at the open house to pass out.

I have a ton of ideas if you would like more.  Just PM me.

House hacking is a great start that you may be able to take advantage of sooner than you think.  However, something that hasn't been mentioned yet is that you just started a new profession.  Many traditional lenders will require a 2 year seasoning on employment.  HOWEVER, you may be able to circumvent that if you are a new grad going into the workplace.

IF you could find a lender who will accept your new employment, AND you could find a 1-4 unit with 1 vacancy (for you to live in), you can typically use 75% of the other unit's rental income to help you qualify for the purchase.

Now that just leaves down payment funds.  Since you are a first time home buyer, there are many programs offered for down payment assistance.  This may be something you want to ask your lender about as it would help you with the down payment funds.

When you house-hack, you have to be willing to live in the property for the lender required time frame (usually 12 months), then you can move out, rent out your unit, and do it all over again.  Some down payment assistance programs will require a 3 year living requirement, so just BE CLEAR on what your commitment needs to be so you can honor it.

Best of luck to you!

My suggestion would be to go to the local trustee sales, and introduce yourself to the investors there buying up properties.  Pass out your card and chat with them.  Sometimes those kinds of investors decide that they just want to quickly flip one of the properties that they end up with, so giving it to a wholesaler to sell it is an easy solution for a quick $5-10K.  This would cost you nothing to do, and would broaden your networking base.  There may be more than one trustee sale each week in your area, so as many as you can go to, the more opportunities you will have to network.  The more exposure these investors have to you, the more they will open up to a business relationship with you.  Keep in contact with them.  Follow-up.  Plant the seeds.  With some pruning, you will have a garden.  :)

 I seem to remember an example Robert Kiyosaki gave (back in the early days of these exploratory seminars), was of a woman who used her credit card(s) to get a cash advance of $60K with deferred interest to go to trustee sale and purchase a property.  It was interesting stuff.  His whole series is worth reading, but are the seminars really necessary with as many resources are available online for free?  

I can't speak to the Canadian market, but I would think that you would be able to find similar resources and ideas from the broad spectrum of people on BP, as well as around the internet.  Save your money for the investment itself, or setting up your LLCs or a marketing piece.  In my humble opinion.

Sorry to be getting to this discussion so late, but I wanted to reach out.

Luis,  First let me congratulate you on your mindset.  You are thinking outside the box, and wanting to take your limited resources and maximize them.  I can appreciate AND relate to your situation.  I started out after college in my early 20s as a single mother, waiting tables, making OK money for a 20 something, but not enough for any kind of RE purchase.  I decided to go into Real Estate and had big plans for my future (had to because I had a little one depending on me to support and provide for her).  I had to wait 2 years after becoming a Realtor to make a purchase, because I didn't realize that changing my occupation (even though it was little money) would prevent me from obtaining decent financing.  Lesson #1 learned.

But once I hit that 2 year mark, I wanted to find the BEST way for me to maximize my resources as a Realtor AND my leverage financially. I started looking at the HUD list because, at the time, HUD offered a 6% co-broke for purchases, and would pay 3% toward closing costs. This allowed me to have my down payment because I represented myself as the Realtor AND closing costs paid, AND have a little bit left over for rehab (which almost all HUD homes need). I closed on my home, did most of the remodeling myself (took the "how to tile yourself" class at Home Depot, painted, etc) and lived there for 3 years until I was able to buy the next one. Then I moved out and rented it for just under 3 years. The market was climbing and hot at the time, and I had to make a decision to keep or sell. It was also the last year that I could sell and not pay capital gains because I had lived in it as a personal residence for 2 of the last 5 years. So, I chose to sell. I walked away with over $125K, which was double what I paid for the house. I kick myself now because when I think about how much easier it would've been to buy a multi-unit instead of a single unit, and leverage the existing income on the property to qualify. However, I made the best decision at the time, and did well. It was a stepping stone that led to bigger and better things. Each next purchase got bigger, or in a better location, or had more bedrooms, etc.

All that not to pat myself on the back, but rather to offer you some encouragement, and share with you that what you are wanting to do CAN happen.  If I had to do it all over again, I think I would've explored the 3-4 unit options.  You may want to do that too.  Your limited income doesn't necessarily have to hamper you when you combine it with the existing tenant's rents.  The lender will usually allow you to use up to 75% of the income.  So, for example, if there are 4 units, 1 vacant (to be your unit) and 3 paying $600 per month.  That would be $1,350 in monthly income that you can add to your income to qualify for the loan.

There were some suggestions from other posters to get a big house and get roommates.  While that may be a good way to save money, it will be hard to qualify for the initial purchase as the roommates will not already be in place.  You need established income at the property already to help you qualify.  Your best bet, in my humble opinion, is to find a 2-4 unit where there is 1 vacancy, or 1 lease that will expire within 60 days of COE (for you to live in), and STAY at your W2 job unti your purchase is complete so that you don't have to wait another 2 years for job seasoning.

There are also first time home buyer programs that can help you with down payment assistance if you are short on funds.  Your contract can be negotiated to have the Seller pay for some of your closing costs to minimize your out of pocket expenses.  You may have to show some reserves, but any type of savings, 401K, or accessable funds can be used to satisfy this requirement.

Wow.  Sorry so lengthy.  Feels more like a blog post!  lol. Anyway, if I can offer any encouragement, answer any questions, or assist you on your journey in any way, please feel free to reach out and ask.

 Ahhhhh.....if she leaves the dog at home, then is it a legit ESA dog?????  I would start there.

If you can validate that it is a legit ESA with a dr note from a registered Mental Heathcare provider (and not an internet drs note), then you may have to allow, which also means you can't charge deposits because these types of animals are not considered pets.  It sucks.  I know.

If you live in the property too, you MAY have some flexibility though as it is YOUR space too.  I don't know the legal rights of a roommate situation.  That is an interesting question as roommate agreements work differently than regular leases, and the rights are different.  For example, what if you are allergic to dogs?  Obviously that would go beyond a reasonable accommodation.

Also, what are the terms of your roommate agreement?  Can you give her a 30 notice at any time?  What provisions are provided in your lease that cover any issues that would allow for a break in the agreement?

I HATE this topic BTW.  It is the most abused issue among renters, and it makes me so mad at people who are not legit.  It ruins it for the truly disabled people that need service animals to support them.  So I can appreciate your situation.

 What you want, many of the title companies can provide, you just need to know what to ask for.  Security Title is the most flexible in my experience.  They can turnaround title reports within 24 hours (not days), offer open ended title insurance (which I think is what you meant by double closes), and can offer special investor rates for multiple transactions.  Any branch can help.

Hope that helps.

 @Melinda Bruce I am sorry I am so late to the discussion, but I wanted to reach out.  I am a 20 year Realtor in the phoenix/Scottsdale area.  I live in North Scottsdale, am an investor myself, and have experience with multifamily, not only the selling aspect, but also the evaluating aspect as many Realtors here inflate unmbers to create proformas in order to get higher cap rates.  I can blow through all that to get to the true figures, and present them to you for consideration.  I also have an awesome conventional 1-4 unit lender here locally that I work with almost exclusively for 1-4 unit deals.  I also have access to commercial lending resources if and when you decide to make the jump.

If I can answer any questions or be of any help, please feel free to PM me.

 Bill, if you are still interested, I would be happy to explore some options with you.  I have been a Realtor for 20 years, am an investor myself, and I know what a wholesaler is! lol.  PM me if you are still looking to connect.