All Forum Posts by: Shawn Coverdell

I personally would send a formal bill to last known address. focus on putting another body in the box to stabilize income. Later you can try to find tenant and collect from them. (imagination required as I will not spell this out on here), if efforts fail, send it to a collection agency and make sure it shows that the amount is owed to a landlord (…. properties etc...) to warn other landlords. they may want to settle with you in the future after having a difficult time renting. Chances are you will eat those rents and expenses. 

Next time try to be a little more aggressive on getting them out sooner. This is a mean business and you need to learn how to play hard when needed. 

Shawn Coverdell

Homes in the Hood

You need action. How much money have you banked this week? How many overtime hours have you put in this month to build up seed money? What have you done to max your credit score. 

Shawn Coverdell

Homes in the Hood

If you are still working towards financial freedom. Your property purchases better cash flow right out the gate or your going to run into stress. 

If your cash flow is well above (like double or triple) your living expenses. Then buy what you want. Buy something you might enjoy owning for once. 

I noticed a few people mention that anything will cash flow if you pay enough down. I don't believe this is  a good way to evaluate a property. Run all evaluations the same so they are easy to compare. Even though I buy with cash, I still look with would cash flow if mortgaged at how it 20% down. Keep things simple. All professions like to "hype up" there profession to make them feel smarter. realist ate investing is definitely one example. This is a very simple, almost too easy business. We live in a rich country. 

If you are responsible and unselfish enough to not dip into your own stash. If you  have a reputation of doing what you say you are going to do and people know you can be trusted with large amounts of money. You cannot help but win. 

If not, you will always be a 99%er.

Shawn Coverdell

Homes in the hood

No you don't remove a tenant for complaining about damages. There are many ways to remove tenants. It is best to know each and every one of them. You may be dealing with a different class of people or something, but in my area you don't let a tenant hassle you about dust or broken trinkets they left laying around after ample warming that you were going to be doing work there. You have to be creative in how you approach things or you will have a difficult time. Once you show weakness, a pattern begins. I have never EVER once found appeasement to work out. They will want to see what else they can get from you. landlording is not the same as contracting. I do both. 

I used to have several tenants that would quote state laws. I don't have them anymore and things are nice and quiet. Those homes are now occupied buy decent people who are happy to have a home and adult enough to deal with life's daily problems. 

Shawn Coverdell

Homes in the Hood

I agree Mathew this is petty stuff. If this gets out of hand, I would remove the tenant. There is nothing worse than dealing with a petty tenant. You will never be able to enjoy traveling abroad if toilets are always making noise and leaves are falling into gutters causing major issues. If a bird ever got into the attic you may have a major emergency to deal with. 

We only use Face book to advertise a property we call the "Redemption Shack". it is an experiment to give high risk tenants a twentieth chance. You know the type. Pit bull is more  important than there families housing needs. They use terms like, "my babies daddy" and other red flags that prevent them from finding housing. 

We interview dozens of face bookers, and go with a gut feeling. 

The quality of face bookers is very low. They are generally people with not much better to do than thumb there phones and post 10 year old cleavage photos or show there latest Tatts. I refuse to do it, but my wife can tolerate it enough to get the job done. 

Most of the people on Facebook are looking for an owner operator because most management companies will not rent to them. This says a lot. I notice our management company is a huge filter because many system people will not even bother to apply through a management company. In fact, when I am working on a place and a toothless zombie comes up asking to rent. I refer them to my management company. They often get angry and say, "forget it, they will not rent to me." this allows me to minimize conversation and get back to work. 

However, I have to say, the Redemption Shack has been a lot of fun and we have had one great success. We are considering starting another home for the same experiment. 

I would not advise this for the beginner, we are way beyond our "freedom number" and can afford to have some fun. 

Shawn Coverdell

Homes in the Hood

First, you are probably going off of Zillow or basically MLM listed properties. Multi family properties are being sold by investors. They are looking to make money too. Secondly, this is a record run up on property values. This is as good as it gets for a "sellers market", not so good for buyers. 

Your first concern should ALWAYS be cash flow right out the gate because that is the banks concerns. They want to see income. increasing income, you will not get increased credit limits. in other words you will hit a dead end. Do you want a couple properties increasing in value, or do you want dozens of properties increasing in value?

Cash flow is why you buy, equity just happens. 

If this were blackjack (a suckers game), would you hit on 19?

Shawn Coverdell

Homes in the Hood

Most banks require 12 month seasoning. some require 6 months. . If you establish "a relationship" I always hated that term and it is overused I believe. but basically means if you prove yourself with several mortgages with the same lender, your lender will probably waive the seasoning requirement and refinance it as soon as a Tennent is placed to keep your continued business. 

I don't think they want to have a relationship with you, they want to make money. 

Shawn Coverdell

Homes in the Hood

Never had this problem. I think you may need take the loss and learn to purchase better deals. Sounds like you may have leaned on MLM and realtors advise. Don't stress. Just learn from the mistakes, and you will be doing great. 

For flips, try purchasing from drug addicts (off market) that are selling there elderly or deceased parents home to raise drug money. Give them a cash deposit for a contract. We are a nation of selfishness. understand the culture and take action. 

If you happen to take this advise, I would love to meet up and hear about your successes while shooting tequila  and smoking Cubans on the white sands of the Mexican Caribbean.   

Shawn Coverdell

Homes in the Hood

Find an ugly home that is financeable yet with some taste can be made to look pretty and add equity. Refinance it at ARV to get a bank account. Then learn to BRRRRR. If you can do that, you do what you want, when you want because you will rapidly be financially free.