All Forum Posts by: Account Closed

According to John Stuart Mill, "Landlords grow rich in their sleep without working, risking or economizing,” but I beg to differ.

Anyone who has ever managed rental property knows that landlording simply isn’t that easy. In fact, it’s hard. Thankfully, I’ve managed hundreds of rental properties over the course of the last decade, and I’m excited to share some of the things I do in my own landlording business so that you can avoid mistakes and solve problems when they come up. Landlording may be hard, but you can do it, and I can help.

You can preview my new advanced Landlording Road Map at the link below. It contains the exact 30-step process for solidifying the foundation of your landlording business:

Happy landlording!

-JJ 

@Bobby Thompson a close family member is a tough one. I think any $ you are planning to put up or help with should be considered a donation as you may never get it back. If you are thinking of it as a loan this could certainly become messy in the future.  

Perhaps the person could get a rent to own or contract for deed situation (if wanting to own), or rental, and if you are so inclined you might put up a little $ toward it. "Without financial risk" means you don't finance or own or cosign anything on his / her behalf. I would stay away from being a landlord to a family member I will tell you that.

Family is a tough one, no good answers. Many investors, including myself, have struggled with this same topic.

Good luck!

@Account Closed

10% for private lending is very doable. I would eliminate the words "without too much risk" though as everything in real estate investing has risk. Even the best private loans will have a certain degree of risk.

As a private lender you would expect to take a Note and Deed of Trust (in Missouri) on the property and if the borrower ends up defaulting you would foreclose and take the property. It is a simplified example but also the reality of the lending business.

And @Jay Hinrichs is right you never want to do any owner occupant deals only investor ones.

Good luck!

@Account ClosedI like having my license for access to properties and access to board contracts. Having a license also allows you to perform real estate activities such as helping other investors buy or sell property. There are several advantages. I have been a licensed real estate agent as well as an investor for more than a decade and it was the right choice. 

Good luck!

@Sandy Uhlmann

listen to 

@Bill Gulley

he knows what he is talking about.

Good luck!

Thanks, @Account Closed! I appreciate the positive feedback! 

Happy investing! 

-JJ 

p.s. for anyone interested I also have an Investor Road Map 

In a partnership my opinion is each party brings a relevant value that benefits the whole, and ideally a value that cannot be bought.  For example, one partner brings the $ but doesn't have the time to put in and the other partner brings 10 years of contracting and investing experience. You can do a flip yourself and hire any contractor so if you are partnering, and assuming you are providing the $, seems as though the contractor needs to establish a value play that is otherwise hard to come by.  Maybe that contractor has personal investing experience which is relevant value. To me that is how a partnership should operate, otherwise why partner with a contractor just pay him or her to do the work.

I would be extremely cautious about any upfront fees before a commitment letter is signed, at least on most traditional fix/flip loans.

@Account Closed  says it well

As a landlord or property owner with a vacant rental have you ever got so excited that a prospective applicant calls or emails about your rental property that you seem to forget everything else?  Yes! I am going to start collecting rent you yell... I've done it too.

If you want to save a lot of time, stress, hassle, and headaches when showing your vacant rentals ALWAYS have your prospective applicants confirm their appointment at least 2 hours in advance of the scheduled time. Many prospects won't call, won't show up, and instead of you sitting there getting angry that you just wasted the past hour and a half on a no-show, you just saved yourself a lot of time!  More time to spend with family, your kids, or sitting in the front of the TV instead of a hot car at a vacant property.  I will tell you at least half of my "scheduled" appointments do not confirm / do not show up. Almost all of my confirmed appointments show up. 

Free advice to other landlords, and I will tell you I have saved myself weeks, perhaps months, of my valuable time in the past 12 years of doing this. Your family and your sanity will thank you :)  Yes, seems so simple yet you would be surprised the number of hours wasted on no-shows.

What other time saving tips do you have from your landlording business others could benefit from?

@Corey Dutton good summary, good points!