All Forum Posts by: John Santero

Hi David- would you be willing to purchase some properties with owner financing and properties that are cash flowing at a good price?

There are many opportunities within the Chattanooga area for both buy and hold in B & C properties as well as cash cows in the C-/D+ areas where section8 plays into the calculations. One can still be all-in under 35K and collect 650-700/mo.

I am a conservative optimist! Getting tenants is not the problem- You have various group that can provide tenants and will suppliment their rents- HUD VA programs, Section 8 etc.

This can be a program for a non-profit to donate too as well as getting a return on their donation.

1. Dont worry about the money- it will come.

2. treat each transaction better than if it were yours

3. get referrals from very happy clients and keep up with them after the transaction.

4. let everyone know what you do and provide them with testimonials from former clients

Rome wasnt built in a day but lasted centuries. good luck

 Excellent overview. How do you transform low income housing from the public sector into th private sector profitably. I have been working on this concept for 2 years. The numbers used above are very accurate. These break them down a little bit more.

Low income tenant income at $733/ mo is $232/mo rent using the model above for rent equates to a unit costing $23200 for a ten percent gross return and ruffly a 5-6% net depending on location. Can an investor live with those returns and can an investor build or secure properties at those prices? I say yes we can if we get creative about it. Can an investor secure grants and tax incentives for providing these properties- in most communities, yes. Does anyone want to know more?

The first misconception is that these people sell real estate information. No- they sell the DREAM of real estate information. Sure- anyone who attends gets some new or better information. I do agree that information and education is vital. You have to go to school to get a professional degree -right?

As a former president of our local REIA , I booked several speakers who sell their wares to the membership- and , we all make money. I try to pick topics and speakers that offer content and are legitimate. Many members have purchased courses. Few have read and followed thru on them.

With that said, for the money, I strongly suggest finding a local investor who is active and form a partnership and follow their lead. Like mentoring with a joint venture combination. 

As far as for me, I enjoy the interaction with new investors- I seem to learn something too- and most of the times we all make money too-

the REIA in Houston is huge and a well run group- google them

Real estate investors association ( REIA)

First and foremost is what is your strategy on providing lease options. I am assuming it is an option to purchase. Do you want to really sell the property or gain a glorified renter?

I have to admit, I do both depending on the property and have strategies for both. Here in TN, I use a two contracts. A standard lease and a option. I do so just in case I need to terminate the lease or option and there is no confusion in court regarding ownership. The lease is TN standard with a monthly amount standard for the property and the location. The option spells out the terms and conditions of a sale. They "purchase" the option to buy the property at a certain price and term. They can contribute payments to the option monthly or x amount by the option term. That can be put towards the down payment when they exercise the option or forfeited if they dont. 

If I want to sell, I work with the tenant toward that goal- credit repair, down payment assistance etc. If the tenant does not perform to what we both agreed too- then the option can be extended (with additional capital) or they can lose their option deposit and stay on as glorified renters. 

The lease contract co-exists with the option term but is a separate entity and can be used to evict the tenant for any violation.

most people hate change. a lot of times it is because they do not understand it. 

First of all- I dont think there are any statues that you have to manage your property so, if the tenant wants too- they can do not have to renew their lease. On the other hand, an attempt to make the tenant understand the move might require a transition meeting.

Arrange a time (half hour max) to meet with the tenant with the property manager. Explain your time restraints and the benefits to the tenant utilizing a professional company to manage the property. - quicker service, more accessibility etc. - It may also be a good time to resign the tenant for another term! good luck!

If you cant train them to fit within your current system, usually they are unprofitable, a nu science or both. I also found that if all parties are not on the same page, that it is also is an indicator that a change is in order. good luck!