All Forum Posts by: James De Stefano

Welp... that's a lot better than what I found with the last house clean out. 

1/8 of Tequila 

1 tiny piece of the green sticky icky

some frozen Jack Daniels Pork 

I had a decent 15 minute party w/ my found treasure 

Agreeded with the first 2 posts, I've only experienced this once to have damages/ missed payments exceed security deposit.  Honestly, If they've moved out, that's already a Win.   You saved time and energy and money to have to file eviction, wait for them to be remvoed, then clean up, then put it back on market.  

Last item would be on the chance that the damages were SO severe, that you could look to file a claim with your hazard/ home insurance.  In case it's 10k  + or something like that, could be worth looking into. 

Otherwise if it's a few thousand of lost damages, keep it moving 

Quote from @Jay Hinrichs:

Quote from @James De Stefano:

Pretty wild, thanks for the knowledge about "limited" fixed rate mortgages.  Seems like a mess that could be preventable. 

But U.S. is going to have our own issues with the 2.5 %  fixed rate loans that all went out, and is possible we don't see anything close to 4% rates for another 1/2 decade.   

It'll be interesting.  and probably something coming up to surprises 99.9% of people, like it always does 

it could be decades or never before we get sub 5%  I mean I started in RE in 75 and rates never really got below 5% until what 2012 ish or  so 47 years of 5% or more. ?? 

 Yup.  But man o man the prices were a fraction of this back in the 70's , 80's.   9 or 10% mortgage on a $60,000 loan was nothing too devastating, even with the lower income at the time. 

 7% mortgage on 500,000 loan is brutal!   Not sustainable except for the top 10-15% of Americans.   But corporations can handle it !!

Pretty wild, thanks for the knowledge about "limited" fixed rate mortgages.  Seems like a mess that could be preventable. 

But U.S. is going to have our own issues with the 2.5 %  fixed rate loans that all went out, and is possible we don't see anything close to 4% rates for another 1/2 decade.   

It'll be interesting.  and probably something coming up to surprises 99.9% of people, like it always does 

I agree with the posts above,  especially since it's month 2 month.   Gettem gone. 

Although I'm curious depending on state to state, if the tenant could cause a ruckus if the lease was say 12 months.   Do ya'll still give them the 30 days notice,  plan to give back full deposit, etc. etc. if they are caught up on rent?   I've not dealt with this before, but It's just a matter of time before somebody becomes disruptive enough that they have to be "fired" before the lease is up

Quote from @Eric Bilderback:

Real estate is still the best investment for normal people to remove or at least cushion themselves against the rat race and build wealth.  I don't invest in the stock market (and suspect it is more BS then the real estate market) but from my experience real estate is the only asset that pays you to own it in a meaningful way.  Even with real estate as unaffordable as it has ever been I would encourage young people or anyone to buy good real estate, manage it well and wait.

Pretty much 100%.   SNP 500 is super consistent and does well over time, but unless you are a lunatic who's using options ( playing with HOT fire ), you really can't leverage. 

It's a huge tool and benefit to RE.  Because RE has plenty of other time sucks and costs involved, it's far from passive. 
I'm doing well recently with a conservative dividend focused ETF that's giving 10%,  with very little price growth or decrease.  Good liqudity too for when/ if RE presents for reasonable opportunities!

Quote from @Mark Cruse:

Quote from @Michael Calvey:

Quote from @James De Stefano:

I'm early on along the journey, but so far it's been the "walking on eggshells" while screening / accepting / declining prospective tenants. 

Maybe it's because it's beaten into our heads as RE agents, but I'm particularly careful when emailing, texting or calling applicants.   There's just 100 ways people can scream discrimination, when 90% of the time it's simply " You don't meet the income to rent"  

There's crazier things for sure, but this has been consistent! ha

Screening tenants can be tricky—like tiptoeing through a minefield because you need to be careful about laws and the risk of discrimination claims. It's great that you're already being careful. Here are some simpler tips to make your process smoother and less stressful:

1. Make a Rule Book: Make sure you screen everyone the same way. Think of it like following a recipe—same steps, same ingredients, every time. This keeps things fair and covers your back if someone says you were unfair. Writing down what you do and why can also help you remember later.
2. Be Clear When You Say No: If you have to turn someone down, tell them exactly why. Like if their income isn't enough, explain how you figure out if someone can afford the rent. This helps them see it’s nothing personal, just math.
3. Keep Learning: Laws about renting to people can change. Staying sharp with courses or classes not only helps you stay out of trouble but also shows you’re serious about being fair.
4. Ask the Experts: When you're not sure what to do, talking to a lawyer who knows about real estate can really help calm your nerves and make sure you're doing everything right.
5. Use Smart Tools: Think about using a service that checks tenants for you. It's like having a helper that makes sure you’re thorough and following the law, which can make your job a lot easier.

It's cool to see someone who really cares about doing things right. How do you usually handle screening tenants, and have you found any helpful tools or tricks?

 I´ve never had this problem, nor do I know anyone who has ever been hit with discrimination claims. It seems like you cant be in jeopardy of that unless you are discriminating. I have a specific criteria for screening which has nothing to do with any race, creed, color, religion or anything else. Unless they are a nazi or something similar, what they are makes zero difference to me. If I have no bias naturally, naturally it cant come out in my selection. If someone believes that, I can show them the criteria and that will end it. The only way I could even think of this would be if I know I had personal feelings of bias to others. There is a member here that advises newbies to treat section 8 recipients like animals. Those are the types that have to worry about stuff like that. 

Not sure if I have to rent to someone I know is an open racist. I actually inherited a racist who consistently wanted to stay in my unit. Real story. 

It's not even a race/ sex/ age etc.  thing, it's when prospective tenants either send applications or call several times when it's decently clear they don't make income or don't meet other criteria. 
I've never had a real issue, and I plan to keep it that way by doing the same consistent things as other have mentioned. 

But I think we all know not ALL people are rational, and some people / agents / adult-children don't quite get it or hide facts ( fake income statements, etc. )   

I'm early on along the journey, but so far it's been the "walking on eggshells" while screening / accepting / declining prospective tenants. 

Maybe it's because it's beaten into our heads as RE agents, but I'm particularly careful when emailing, texting or calling applicants.   There's just 100 ways people can scream discrimination, when 90% of the time it's simply " You don't meet the income to rent"  

There's crazier things for sure, but this has been consistent! ha

This newsletter is better than 80% of the junk that hits my email! nice write up!

Nobody know what's going to happen, but man o man there's just so much freaking money out there.   I don't think $100,000 will ever buy a "nice starter home" again. At least not one with any decent schools or economy nearby. 

The biggest ripple effect in the coming years will probably be from something we do NOT see coming. or at least 99.9% of us.  

Instant gratification is absolutely the crux of (Western) society. Fast solutions have slow problems.

Delayed gratification needs to be something instilled in the younger generation early on.

 Totally agree. But it's never that easy.  You can talk to kids, teenagers, 20 year olds over and over, but at least for ME and many folks I know, it's not the same until your have real Skin in the Game.  

That's for RE, Stock market, budgeting money, relationships, etc. etc. 

I've learned from teaching public school that  WHO you spend your time with & family impressions are 90% + drivers for what viewpoints your have and how seriously you take your actions. 

Will people learn?  Ehhh  you can bring a horse to water...