All Forum Posts by: Justin Escajeda

Welcome to this community!  This is truly a invaluable resource to any topic of re investing.  Many times I get stuck on something and just ask a question.  I have NEVER been once left hanging with zero replies.  Everyone is here to help and learn man, welcome again!

Yea, you can do all the referencing and background checking you want, but there is never a guarantee.  Ive had a upper class psychologist 2 years ago bring in stray cats, and she was a hoarder (cat spray everywhere), then on the other end of the spectrum, 2 weeks ago, I had a tenant from one of my mobile homes (not to gross you out with details) leave me an steamy early Christmas present right on the carpet I laid in May.  So tenants can suck anywhere. 

I for sure agree with Aly and Joel, there are a lot of problems that come along with war zones.  I personally do not know how long I will continue to buy them, Im 32 now and it is becoming a bit more uncomfortable for me than it was in my 20's. 

But, yeah, the cash flow can be super, and remember, a tenant can go bad and trash your place in ANY type of neighborhood.  I can attest to that, and Im sure others can on here too.

Ok, gotcha.  Yeah, its like what are you going to find behind the door...I'd probably just get 1-2 friends to come up there with me to knock on the door, get them to sign new lease if theyre decent.  However, if you try evicting, you know how that can drag out..  But that's awesome though man, best of luck.

Id be afraid of them doing poor craftsman ship, and or injuring themselves and in turn suing me.

If you want my opinion (someone who buys in war zones), the numbers typically do look attractive.  There's more to it than the numbers for it to be profitable for you.  Don't try to reinvent the wheel, put tenants in there that you feel are fully acclimated to the area already and find there story.  I like renting to older people (who have been in the neighbor hood before it turned into a dump), or perhaps a couple with 1 (MAYBE 2) kids - but its usually just a mom and kid(s).  Look for the long term people.  Ask yourself do they fit in here in this neighborhood?  Secondly, if your only paying electric, will they be capable of getting there other utilities turned on (and kept on).  Ask their income (they more than likely have some kind of assistance (welfare, cash assistance, food stamps, LIHEAP - winter heating, SSI, disability, etc.).  Is your rent more than 1/3 of it?  Do they have a security deposit or need to give it to you next month because they need to move NOW?  Id deny those people. 

A lot of my places I don't go to at night, so you may want to take that into consideration.  Are you comfortable with the junkies and criminals that frequently cross you path there?  People will eventually start noticing you, and they'll know when you getting rent.  You may want to have some kind of protection.  I self manage, and a robbery was attempted on me, so protect yourself. 

Im not saying this stuff to deter you from buying, because this is a neat little niche that can be very profitable for you if you play it right. 

Having checks or money orders mailed to you is definitely ideal, all my storage customers do that, and 1-2 apartment tenants do that.  I will usually go to each unit on a designated day between 1st and 5th (coordinating with tenant) to pick up rent.  Honestly, this year its been a bit time consuming.  I have 17 (soon to be 21) units to go door to door.  I need a new system, but to be honest, I do not like to wait for a check to come.  Ive noticed a lot of people will wait until the 5th to mail it.  I will give you one word of advice, when a tenant calls you and says they have your money, Id suggest going to pick it up promptly.  Reason being is that most people are bad money managers, and if you wait until after the weekend, it might not all be there anymore.  Also, if you tell the tenant "ill get it in a few days", that may put an idea in his head that you don't really depend on his rent and that you are the cavalier type about paying on time.  No way, getting my money on time and from EVERYONE is my focus.  If they take over 5 days, on day 6, put a 10 day notice to vacate on their door.  Stay adamant and persistent, hope this helped.

Welcome to the community man!  I agree with @Walt Payne said about mindset of age.  I started in my 20's and made some irrational decisions, that had cost me financial and mental heart ache.  I feel that even now at 32, I am making better decisions not just from rei experience, but life experience as well. 

Its never too late to make money, things can progress as fast as you want them to.  In under 7 years Ive acquired 21 rentals, over 70 storage units, and 2 commercial bldgs.  Some of these didn't produce like they should at first for me.  I was kind of ego driven at first and wanted more or less to say I had income properties.  Ive corrected the mistakes and do not intend on making them again.  Id rather have one unit that producing well that 3 that are a pain and money traps.  You get into out of this what you put in, don't treat it like a hobby and something you do in your spare time.  Its your business.

In the last year, I have been avidly trying to buy a mobile home park, I have had 2 (out of the maybe 40 that Ive spoke with owners) that were making progress.  One, the seller and I came to an agreement on price, and literally 2 days later she back out before we signed an agreement.  I came to fine out, a large company came in and offered her SUBSTANCIALLY more than we had agreed upon.  The other park that I was making progress on was put under contract while we were negotiating, and it was the same kind of company.

My question is, when I am dealing with these mom and pop owners, what else can I do to persuade them to sell to me (always looking for owner financing too), when there are these larger companies that can blow my offer out of he water. 

I try not to get discouraged, but I am just seeking alternative methods in getting them under contract I suppose.  Thanks

Welcome @Christopher Elliott , your definitely in the right place to begin, ask a lot of questions for great feedback (that's free!), I love multifamily rentals, and PNC Park.  I am from Pittsburgh, so if you have any specific questions about my area, do not hesitate!