All Forum Posts by: Marc Winter

@Zachary Hadjah,

Let's define some terms to better answer your question. 

1.  Lease/option requires a lease (that does not mention an option), and an option (that does not mention any lease). More on that later

2. Rent-To-Own is an agreement usually where the lease will incorporate the terms of the future purchase of the property.

Which to use? The lease/option as described will be 2 separate documents; the lease can be a standard rental agreement.  The option is a completely separate document, discussing ONLY the terms of their right to purchase the property within a set amount of time for a set purchase price.  The price of the option, paid for by the potential purchaser of the property, is agreed upon and set and is non-refundable.

Some sellers MIGHT credit the cost of the option back to the buyer of the property upon closing, but any details of the option may NOT refer to any lease.

Why?  If you connect the lease (right to rent the property) and the option (right to purchase) you will be providing the renter/purchaser certain ownership rights that are above the rights of a tenant.  

If things go sideways and the landlord/owner must evict the tenant/purchaser, a court could force you to eject the tenant.  Think of that like a foreclosure.  That means a lot more time and money will be spent by the owner doing an ejectment rather than a simple eviction.

Seek professional legal advice before moving forward with any of the above.

Hope this helps.  Good luck.  Keep investing and moving forward!

@Aidan Swienton, congratulations on setting your goal and starting to work towards it.  If I read your post correctly, you are working with $600.00?  

If that is accurate, I'd suggest you invest that money into education.  As has been said. "Empty the coins of your purse into your mind.  Your mind will fill your purse with coins".

Make sure you completely understand the rules, regulations, and bylaws of any condo/HOA you decide to invest in. An HOA is a widely used form of community popularized by the developer.

Keep in mind that some expenses are out of an individual's control.  

Look at the Florida condo market to learn how the market can be affected by special assessments, weather-related disasters, insurance availability, as well as newly promulgated laws/regulations. Those issues can affect any HOA in any geographical market, at any time.

Good luck!

Because the answers to these questions are site-dependent, you'll need to check with your local zoning and permit departments.  Make sure your site meets the 'above grade' numbers, and 2nd means of egress requirements.

So long as you can do the project as per local codes, you must allow each unit to access their own meters/breaker boxes.

Hope this helps.  Keep investing and moving forward!

@Aaron Dennis,

I like it!  

I've done exactly that for many years, and many, many times.

Of critical importance (which you already understand) is to be COMPLETELY up-front and transparent about the cash offer:  "I will pay $xxx in cash, with NO contingencies" or something to that effect.  

Let them know they might get more money by listing with you and selling to a third party, however, the seller should consider the contingencies that enter into it, for example, inspections, appraisals, mortgage approval, etc.  

And then there's TIME.  If urgency is a factor for the seller, you could close as soon as the title is clear.  With a mortgaged, third-party transaction, it could take several months or more (depending on your local customs).

Good luck!  Keep investing and moving forward!

@Paul Harris,

Congratulations on starting your real estate adventure!  

Ways to learn about real estate:  

1. Connect with an experienced agent and shadow them--maybe offer to drive them to/from appointments. Ask questions, maybe they will let you sit in on a presentation. 

2. Get out in your spare time and inspect the available listings--product knowledge is one of the major keys to unlocking success. 

3. See if you can attend a few closings so you can see how that process unfolds. 

4. When you are out and about, start a conversation with homeowners about the neighborhood. When you see someone outside working on their garden, say hello and engage with them about real estate. 

5. Attend open houses.

Hope some of these suggestions might help you!

@Christian Licata, first, congratulations on the mindset you have in wanting to invest in real estate!  

A few questions come to mind based on the info in your post: 

1) On the rental, Is the $50k just for the downpayment, or do you have additional funds available in reserve to cover cap x?

2) Re the flip, Do you have any experience in construction, or dealing with contractors, as well as your local building department?  Have you considered partnering with an experienced investor to work with you during your first flip?

3) Do you own your own home, or can you 'house hack' if necessary?

I sincerely wish you the best of luck with your real estate journey!

Keep investing and moving forward! 

Timur,

Try visiting the assessor's office to discuss the valuation and millage rates.  Also, ask about the tax protest process for your location.  Just keep in mind, that a tax re-evaluation request MIGHT result in a higher tax. 

Good luck.  Keep investing a moving forward!

Do you ask all your applicants for their employment contact info?  If yes, then certainly get that number and call. 

Listen to how the manager responds to your questions.  At the end of the conversation, I'd ask with a chuckle, "Would you rent to them?"

Good luck.  Keep investing and moving forward.

After many dozens of flooring replacement jobs, I'd recommend LVP (vinyl) for most installations.  Don't use sheet vinyl--tears way too easily.  

BTW, if you have hardwood or even pine under the carpeting, you might consider refinishing the wood.  It's a cost-saving up front and lasts longer than many other choices.  (Not in bathrooms).

Good luck.  Keep investing and moving forward!

First, does your lease address the issue, (such as in this example):  "Tenants will obey all local, regional, and federal laws or be subject to eviction."

How long will the arrested brother be in jail?  If it will be months or more, you might simply serve them all with the proper notice to 'cure or quit', or 'non-payment' if that is the case, and then go to court.

Assuming you get the judgment in court, you might then simply evict them.  

I am not an attorney, and this is NOT legal advice. I am speaking only from my own experience of over 40 years.

Good luck.  Keep investing and moving forward.