All Forum Posts by: Lana G.

I would never, in terms of legal contract, go the route of "not worrying about" any language. As a landlord you expect your contracts to be read for what they actually say, understood, complied with. You know that if they are not, you will enforce (you want the signee to know this as well.) why would you not expect that of the PM? If the terms sound crazy now, they'll sound worse if you actually have cause to terminate from a subpar PM. Negotiation of terms is obviously an option as is looking elsewhere for one that offers far less shock and awe. The consensus appears to be that the language is appropriate but prices may be excessive, and perhaps the PM has had some bad experiences (perhaps due to their ability to provide the contracted services, or otherwise). Who knows. Point being, shop around. A good deal isn't a good deal if you feel like you're been raked over the coals.

Great! Now, have you looked at units in your area with higher price points? What is different between theirs and yours? Obviously the kitchen could use a touch-up. Pull the carpet, go for hard wood instead (in my area the "NYC loft" look is quite easy and popular for the higher priced units, and obviously not much work since almost everything is "exposed")

But all in all you'd keep with the theme of the area I'd supposed, matching the conditions of the units whose prices you'd be trying to match.

@George Genovezos FYI the link you shared is the edit link, so I could literally delete your post.

You should post the public facing link instead.

Other than reason based on credit (which requires an adverse action notice) are you even required to formally (in writing) deny a tenant? If not, why even allow for the potential of accidental "discriminatory language"?

I imagine you may have said too much in the way of "the apartment is yours" during the face to face and now you aren't looking forward to the follow-up calls? Understood.

I would avoid lying to the prospect though. Keep on with your search, if they call advise them that you're still reviewing applications and after you've actually located and accepted a deposit, tell them just that - when they call you.

@Chris Nance Understood about the pro membership. Yes, plenty of calculators exist on "the regular internet" lol. Better yet, doing a google search for RE rehab calculator will not only bring up calculators but some great sites, videos, "gurus" etc.

Biggerpockets is a must-have, especially for the beginner. Since I don't use social media personally (and my VA handles all my business posting), this is literally like my facebook. But every facebook has its instagram, snapchat, twitter. So fear not! Everything you can pay for here is probably available for free (in some form or another) on the world wide web.

Disclaimer: Get the Pro membership when you can, a lot of times there are discount codes at the end of the webinars (those banners on the side of the screen when you log in and reach your dashboard). It's really very worth it but its okay to hedge your bets this early in the game.

@Chris Nance So that is where you begin! Since you're still in the early phases of your own understanding there is absolutely nothing wrong with allowing this conversation to rest. You remain on your intention to do this and try to contain your excitement to share your intentions (all of us want to talk about RE when we first get into it).

Bigger pockets has plenty of resources for fact checking! Find a test house, work your numbers then pitch it to the forum. Use whatever you gain of knowledge from the responses and apply to the next test house. Do this until your expectations and numbers start becoming similar to the feedback you're getting. Keep it simple and don't worry about if she understand, this part is for you.

Once you're more confident, show her the numbers. Numbers don't lie.

Regarding her complacency.  Those are numbers too. 

Show her how much interest costs.

30 years of 4.25% interest on a 65k loan is 50k in interest,

(paid at $320/mo). A total of 115k paid on what started out as 65k. 

Now add in duplex property cashflowing $320/mo.

You're entire mortgage and 50k of student loan interest is paying paid by your friendly downstairs neighbor whose kid plays with your kid in the front yard.

And the money you save by paying less in living expenses can go toward another duplex, that with cashflow your kids college fund. And so on.

Put Your numbers on paper. Then learn how to work the house figures and put that side by side.

Remember, she wants to believe. But you have to first.

If you are aware that the tenant is not operating a home business but simply performing the functions of his job while inside his home (and this does not involve increased traffic, paying customers, commercial enhancments made to the unit), why would a landlord be concerned, as long as the tenant is paying the rent on time?

I mean, would this mean that you discriminate against computer programmers, software engineers, adjunct professors that teach online classes, etc?

Lay out the strategy.

It isn't always helpful to follow-up your generalized, high level explanation with "and I know this will work, some other guys are doing it" Treat her like a business partner: show her a house, show her repair estimates and quotes, show her the comps and recent sales, show her the mortgage estimate and recent tax bills, then the market rents in the area.

This is math you should be doing anyway.

And its not like you're trying to swindle her. She can not deny the math.

If she has been on board with your stock investing (which is common gambling), then she should able to see the writing on the walls when you put pen to paper.

Also, your wife is your wife. She wants to believe in you and she wants you to succeed. It hurts her when you fail at something so her apprehension is more about that, then not thinking its a good idea. Get her far away from the idea that this might fail and she'll champion your cause as if she thought of it!

You know you've got a good thing going on this RE thing. Trust it and she'll trust it, understand it and she'll understand it. But also, show her WHY you trust it, why it makes sense. Again, She cant deny the numbers.

Spend some time putting all that down before you start the discussion, that way you're prepared. And if she has a what-if that you cant answer, there's nothing wrong with saying "Good Question, Iet me check" then coming back here and asking a guru.

At the event I attended in Willingboro, NJ they told us that you could not have interest in another property while you have a NACA mortgage so I understood that to mean that I would need to refi and sell, but they mentioned nothing about "first-time only." Matter of fact, one of the presenters retold a story of a man selling to a relative and using NACA to get the second home....

In reading their workshop booklet, it appears that they not only look at your current credit items but also want you to pay (or negotiate payment) on closed and charged off accounts. It explains that this is done so that these items are added back to your credit at a later date allowing for possible lawsuits/liens (or just looming debt obligations) etc. Is this common practice with a regular lender?

@Carley M. - what a wealth of knowledge you are! I actually attended a NACA workshop to get a first hand feel for what people were looking for. I love what NACA is trying to do for these potential first-time homebuyers although, I agree, there is a bit of disorganization on the back-end and the inability to set realistic expectations. However, if the right prospect comes with the right intention and can follow the program through, WOW! Thanks for posting about the Section 8 piece as well. I had sought out that answer for a co-worker and actually never got any follow-up.

@Susan Maneck - How beautiful an exit strategy! It's sad that some people are standing right on the threshold of a life changing event, like buying a home and saving 750 a month, but cant see the forest through the trees.