All Forum Posts by: Kevin Perk

Zip codes can be a bit tricky, plus it will be up to the particular buyer.

For example, 38111 has million dollar homes as well as stuff you cannot give away. Yet there are investors who buy in each area.

As another example, I like 38104 and parts of 38107, 38112 and 38114. There are parts of 38107, 38112 and 38114 that I would avoid.

38127 aka Frayser is an area many avoid, yet I also know several who invest and do well there. Same with Raleigh in 38128 or Berclair in 38122 or Hickory Hill in 38141 or Whitehaven in 38116.

We also just had a big discussion on values in 38118 in another forum post.

So I think it will be up to the investor. If I were you I would build a list of buyers by zip code or neighborhood. That way when you get a deal, you can get in touch with your buyers for that specific area.

Here is a link to a zip code map for reference:

http://cbana.memphis.edu/lending2006/Maps/MemphisShelby_ZipCodes.jpg

Hope this helps you out.

If they are in their mid-20's and mom or dad comes with them to the showing they are helicopter parents and you will have a very high maintenance "tenant."

Lots of food spilled down the front of the shirt is a bad sign.

Do they smell like alcohol? Another bad sign, especially if before noon. :)

Take me to lunch and let's talk real estate. We can deduct that. Well, at least 50% of it.

@David Krulac

I will have to put "wears white t-shirt" on the tenant screening checklist. :)

"Real estate always goes up in value."

Not that I took the advice, but I heard it many times! Funny, I don't hear that so much these days.

Joel,

It is interesting to watch.

Showing up on time, dressing well, speaking well, being respectful and of course like you said being prepared with copies of paperwork and knowing the answers to the questions that will likely be asked goes a long, long way.

Kevin

Yes it is common. We have all been there.

Use the BP forums as a sounding board for your potential deals. There are lots of folks here who want you to be successful and will help you. Do you have a local REIA nearby where you can also interact with some other investors for advice? That was a big help to me.

I will also say that the more you do the more confident you will become. Over time you will become less fearful and before long, if you keep it up, your fears will be left in the dust.

Understand that you will likely rub some folks the wrong way as you go. This is just part of the business. It will sting at first but you will come out better for it.

Just do it man! You have nothing to lose but your fears.

Good luck,

Kevin

@O'brian R.

You are welcome!

@Dewayne Gammel Cool!

I hope it works for you, works for us. Let me know if I can help more.

@O'brian R.

"...keeping the security deposit is standard in TN" is news to me as well. I think the Tennessee Landlord Tenant Act, which applies in Shelby County, would beg to differ.

Plus, going into a rental agreement knowing that the security deposit is going to be kept regardless of the move out condition is really starting off on the wrong foot. What would your feelings be towards the landlord in such a situation? How would you return the property when you move out? What incentive do you have to return the property in decent condition?

Now, if our tenants have caused damage, yes we are going to use their security deposit to repair it upon move out. However, we regularly give over 90% of our security deposits back. So no, keeping security deposits is not, nor should it be, standard.

Think about this as well. One day you will likely want to sell your investment. In an area dominated by other investors who will you be selling to? Will they pay retail prices or will they be looking for a deal? When you are ready to sell, how much will you have to spend to rehab the property? After a few years of being a rental, it will need updating and rehab. How much will that updating/rehab eat up the cashflow you have made over the years?

I'm not saying not to invest in real estate here or anywhere else. But in real estate you make your money when you buy. So you have to be sure to buy it right.