All Forum Posts by: Account Closed

@Jennifer its really a question about equity or debt. Equity being your ownership and debt being the limit claim on your asset. REI aren't any different than a venture capitalist or hedge fund manager. Debt provides you with both a tax shield (taxable interest) and leverage to grow, but a risk. Equity gives you complete control, but growth and liquidity risks. If you have the funding to pay cash then couldn't you keep a reserve amount aside, in the event you have a vacancy-month. If you pay cash and have a vacancy-month you still lost money (opportunity costs), you just didn't gain any money on the borrowed tax deductions and additional rentals the other months. Talk to your CPA first and don't over leverage:)

Is anyone doing owner carry contracts (or land sale contracts).  I started out in the mid 90's doing this, with wrapped mortgages, but it seems a thing of the past.  Anyone still doing it and where?

Thanks @Joesph, I thought no one would ever ask:)  

I pose the question because we are such a new idea - it requires rethinking the role of the landlord and real estate investor. 

I started investing in real estate when I was 14 and was always frustrated by software that I continuously had to pay for - update or more units.    

So how do we make money - we provide a top tier property management system to landlords for free, because we know that 14 million landlords don't use a property management company or are property managers with less than 75 units and therefore don't have a maintenance crew, plumber, painters, cleaning crew, landscapers, appliance warehouses, roofers, sheet-rockers, legal counsel, Realtor, etc...., so we provide them to you through a bidding portal.  Those ServicePros pay for your system at $35/month.   The landlord is really the asset as they spend on average $2,500 a year per rental on repair type expenses, so we help you coordinate and track all that spending and assist local ServicePros in providing bids for any work you might need. 

You can do screening and payments, but we don't charge, instead provide you options of companies that do it and you decide how much to pay them.  We are a marketplace and the ServicePros see us as part of their marketing budget.  

Soon we will have functions for REI to track their whole investment from purchase to sell and everything in between - free. Taking a model that is profitable in one City and then scaling it to the world (in 23 countries now) takes a little time, so some of our functions are up and coming:)

If I may, I have a question for you:  how do you typically communicate with your tenant?

Thanks

Joe 

Fun! There is nothing more concerning than opening a letter from HUD and reading accusation about how you discriminated. Go ahead and vent, but then when your done you will realize this is not a big deal.

HUD is required to be a non-bias third party and investigate any and all claims. They most rely on a local organization to actual handle (Housing Authority usually) the investigation. The majority of these claims are settled outside of any formal finding. The agent you work with will discuss how to work with the individual making the claim. Many times they can't even find the people who made the claim and they close it.

Read the alleged violation and find the parts that you don't agree on, everything you do agree on isn't worth discussing as you agree (points like you remember her contacting you).  If you were unaware of the rules behind section 8 than that is a fair discussion as you weren't discriminating you just weren't aware of the program and how it works.  They are not out to get you if you didn't follow every law - only if you discriminated.    

Sleep well.  

If you get used equipment you replace it more often.  

If you get luxurious equipment you have to clean and service it more often.

Durability and consistency.  (e.g. nice fridge, but no water/ice dispenser) Try to get the same equipment (not necessarily brand) for all of your rentals, helps on costs with replacements, parts and maintenance info.  

Has anyone used TenantCloud and how to the make money?