All Forum Posts by: Jailen Holt

Depends on the true numbers of both

Great job getting those 2 under contract! What was your strategy? What would you do differently?

For me the pros would be access to MLS as well as hands on experience I get from the agent/Broker's perspective. I'm able to understand and further my knowledge of real estate investing especially when I do deals for investors. Not to mention i could argue that investors who are agents and brokers have better access to deals, show properties for themselves, submit their own offers, save on closing costs ( which really adds up when your investing really takes off ), and market yourself to other investors and provide a second source of income when you help them find deals. The cons for me are the monthly fees. Mine are only about $100 per month. I know other people who pay almost $300 per month! Some might argue disclosure is a con, and I can see why but it doesn't bother me. However I do feel that being an agent makes me more susceptible to law suits due to certain agency laws and conflicts of interest. All in all I still support the idea that having my license does more good than harm.

Hey @Daniel Barnes, great question! I think your concerns are very logical and I would want to consider them as well. I'm a few hours south of you in Atlanta, but here in my market we have similar decisions to make. Properties with higher rates of return compared to the purchase price usually mean higher risk tenants. Thats not true for every market but it is here in my part of Atlanta from my experience.

If you decide to jump on the opportunity, which sounds like a great deal if the numbers are accurate (190k all in and 5k gross income before expenses I'm assuming) you will still cash flow very well. Be sure to put each potential tenant through a thorough screening process and background check. Ask for references AND verify and call each. Perform background checks and income verifications on each one. Avoid ones who have frequently relocated and be weary of those with past evictions. Lastly, make sure you stick to your personal criteria and try not to make exceptions. 

Good luck out there man!

Just my personal opinion @Shawn Ackerman, but i can completely understand why the other two gentlemen would suggest going the stern route. @Don Daniels offered a great professional suggestion too.

I love your idea! Have you considered researching other markets that yield higher rates of return?

Interesting, @Abraham Urena 

If you did have to eventually pay for property management, would you continue to invest there? Or would it make or break a deal for you?

What other markets are you looking into?

Originally posted by @John P.:

I would give 5 day notice now. Set the bar where it should be with tenants. Otherwise every month will be a story.

 This is also an option. Do you think that he should ask the previous landlord if this was a constant problem with the tenant also? My perspective is being more sympathetic I suppose :/

Great question, @Shawn Ackerman. A lot of landlords get put in this predicament. Do you feel that this will give the tenant the right to do it again? Communication with both the tenant and PM indicating that this is not acceptable would be in your best interest long term. Sympathy can go a long way as well though. Tenants who feel that the landlord doesn't truly care about them tend to reflect this attitude back towards the landlord and the property itself. Showing them that you understand that things happen and giving them this ONE opportunity could make a world of a difference for you both. Think long term and think about if you were the tenant. They don't want to give up extra money for late fees. They don't want to get evicted even more. Im sure you also would like to keep your cashflow rather than worry about vacancy your first month owning the property.

You could try. Being transparent about your intentions would be my suggestion. Come to an agreement with them. Find out their motives for selling. Find out what they would like to receive from the sell of the property. Sometimes they just want to get enough to cover the remaining mortgage and a credit card debts or medical bills. Sometimes it can be much more complicated than that though. Find out how you can bring value to them by solving their problem. After you do that and you get them under contract, you will know how much "meat is left on the bone" so that you can advertise the property accordingly.

You and the seller together can determine the amount of earnest money. The amount however all goes back to you figuring out what they would like to accomplish from the sale of the property. The earnest money also needs to be put into Escrow depending on your state's laws.

Good luck Tawana, i hope your wholesale deal works out!