All Forum Posts by: Jason G.

Listening to various podcasts, one of which is BP Podcast 356 with Joe Asamoah, that talked about landlord and tenant relationships got me thinking. Joe gives out gifts and flowers and such to his tenants. I really like that mentality of providing a service for our tenants. I think this is simply amazing.

Now, I am wondering if say you were doing well in your cash flow from every door you owned. Hypothetically +250$ per door, and you took 1/12th of the tenant's monthly rent, each month, and put it somewhere in your LLC. (in other words your bottom line allowed you to work a little bit harder to get some more doors and still live off your passive income) Then at the end of the year (I would choose December 1st, or maybe November 30th) you gifted them the amount back for the previous 12 months, do you think that would:

A. Build Extreme tenant loyalty (technically a month of free rent)?

B. Maybe anger them if you didn't tell them you would do it and the way the system worked. (Which would be since the day of lease signing, each month you set that 1/12th aside to pay out that November or December with a note stating: Thank You for being a superb tenant! (or something more personal)?

C. NOT ASKING FOR LEGAL ADVICE.... possibly be illegal in some states or areas?  I think gifts are not illegal anywhere. Obviously I would have to go over this with legal counsel before I ever even thought about doing it. 

Anyway, I ask because I had a conversation with a co-worker that I would always try to work with someone that hit on tough times if I could, and a crazy idea like this might really put a smile on my tenants faces and better yet, provide even more loyalty to produce less tenant turnover. 

Now overall this would obviously mean I was charging less than current rental rates because even if I was at the current rate for my property, I would be giving them back 1/12th their rent per month at the end of the year, but if they stayed loyal and took care of my property and also with this gift every year would likely feel less upset over annual rent increases.

Thoughts?

@Jason G.

Guess I should've been more specific, sorry about that.

I will be taking out a mortgage on the home, and then some time after that, refinance so that I can invest in a rental property.

Is that a bad idea?

I'm looking to buy my first rental property, but I'm also planning on buying a forever home for the family and myself sometime next year in 2022!!

Should I wait until we buy the house, so that I can refinance, and use that money to invest?

Or should I just take out a loan from the bank to buy the rental property?

Any advice and suggestions would be greatly appreciated, thanks in advance!!

This may sound like an odd question, but so many times we hear that (insert name) has gotten up to 1100 units, or has a portfolio containing $400M in multifamily real estate.  But how many of these folks only "co-own" these properties?  

For example, Guru X states that "he/she is up to 1100 units".  Does this mean that they actually own each of these 1100 units themselves, or does this mean that they are involved in multiple deals, where the total 1100 units are actually owned across *all partners* within these deals(thus exaggerating the true ownership of the individual)?  It may seem like splitting hairs, but this certainly makes a difference to me.  Any thoughts?

@Jason G. That's why I asked about rags to riches stories. I have a human services degree and I do not work I that field. Due to the circumstances I didn't go back to college. So I do not have the income to save. I need to be creative here.

I'm wondering if anyone would like to share a short cap of their story. Have any of you started Real Estate with no money or very little? Where are you now? What niche did you start in? I don't buy into all the hype videos and programs for success. I want to hear REAL stories from REAL people!

Hi All,

I need some perspective because I am fuming and I want to make the right decision.  

The Backstory: We have had a basement waterproofing company who was awful. They did both my house and a rental we have that is currently occupied with tenants. They were supposed to take 2 days for each job but repeatedly just didn't call or show up.  Every day I was told they would be there the next day, every day I had to call them (repeatedly because they don't answer their phones), only to find some new reason they couldn't/wouldn't be out that day. For reasons not worth typing I  typically obtained this information past 1 pm at the earliest and frequently later. This went on for a week and a half. Meanwhile I'm asking my tenant to stay home because someone has to be there when they are there.  My tenant bend over backwards to be sure someone would be home the whole time. It was incredibly embarrassing to repeatedly tell her that they again needed to come the "next day" and see if she could be home. 

The Discount: After the initial no call no show I wrote a pretty terrible review about them on google. The manager called me nearly immediately and offered me $2500 of the jobs (combined) to take the review down.  That seemed fair enough, since at that time they had only missed on day that they were supposed to be there. 

Fast forward a week, they have still not completed the rental and are saying they can come out on Sunday to get it done. Job was supposed to be done the previous Friday (like a week before that Sunday, not 2 days).  I tell the manager I think it would be reasonable to discuss the amount off we are getting. He agrees and says once the job is done we can talk. 

Now it's the next Friday, I'm chasing the company down to get the final inspection on the rental done and request to talk to the manager to finalize the discount we're going to get.  

The NDA:  The manager is immediately incredibly defensive, says they went above and beyond sending guys out on a Sunday to finish the job and he doesn't think any additional discount is needed since it was just an "inconvenience" for me. I pointed out that it was not above and beyond to finish a job they promised to finish the week before and it's not just an inconvenience but it affects my business as now I have created bad will with my tenants and need to compensate them for their excessive time wasted on this. 
I told him I wanted half off the job.  This sent him over the edge, he started  yelling and said he would give me $500 more off and that was it then threatened  to take away all of the discount unless I sign an NDA.  He said that the amount was "a lot of money" and he is not giving me anything else.  

Between the 2 jobs my total bill is about $25K, so I really don't feel like a total of $3000 is a lot of money, but then again when I think of what else I could buy with 3 grand it really is. 

My Dilemma: So here's my dilemma, I'm pissed and I don't like being threatened so I want to just write the terrible google review telling everyone to stay away from this company and that they pay  people to keep the bad reviews off of google. BUT... $3000 is kind of a lot of money, it would buy the cabinets in a small flip I'm doing for example. 

So BP, what would you do??

Hey gang, just curious what industry standard is or your experience for a PM company sending rent proceed funds? 

To the group,

I am curious as to what the concensus is regarding the amount of liability insurance one should carry on a rental property?  I happened to speak with a real estate attorney recently who had mentioned that the bare minimum they would recommend for each property is $1MM per occurrence and have at least a $5MM umbrella policy.  However, another attorney had mentioned having $10-$20MM dollars worth of coverage per property, which I thought was astronomical.

I would appreciate any seasoned real estate owners or RE professionals to chime in. What is a good rule of thumb for recommended coverage regarding liability insurance for both SFH rentals as well as Multi unit properties.

Thanks!

I've had a few people ask me if I would be willing to mentor them in wholesaling when they see my profile or see a sign off the street. I'm curious what you guys do or think when someone does this. To be honest, I won't even give them much time because I hate when people just ask to be coached in anything. I'm a believer in you just do it, then someone will notice your efforts and will help guide you, but no one really mentors when someone asks (unless there is a monetary incentive in it). I'm just curious as what you other experienced wholesalers do when someone asks you for coaching.