All Forum Posts by: Account Closed

@Alyssa Weber

Regarding utilities.... I recently bought a 27 plex. 1 meter so landlord was paying all heat and water/sewer. First day after I closed I put it on "even payment plan" with utility then calculated even amount out among average occupancy %. I sent notice to everyone not in a current lease, that in 90 days they will start paying heat/water/sewer at a fixed monthly rate of $78/month. Only had 1 say they would move because of new bill.... they still live there

What do you do about tenants throwing couches/ large furniture in the dumpster at apartment complexes? Ways to prevent? also the annoying setting trash bags next to the dumpster instead of in it.

What to do when you catch them?

@Allen Wilson Jr

First State Bank is local and does portfolio loans/keeps them in house. I was working with a different small local bank but common problem is the commercial banker you work with is constantly changing limiting your ability to build a relationship. My most recent deal my old Bank (united republic) wasn't really interested in giving me the best interest rate they could, and told me that to my face which blew my mind.... even with Stellar financials in all aspects. First state was willing to earn my business, and their commercial bankers have been there a long time which says something.

@Alex Varner from myself doing many years of contracting.... upfront payments are absurd and show someone's instability, it is the absolute best way to get screwed hands down. I do not pay anything upfront and I make that clear with all contractors and in writing. I also inform them that I am concerned of their lack of financial stability if they cannot at least make it to day 1 of construction without funds. Tell them you can pay for percentage of work complete/materials delivered on day one if they are really that broke or concerned. But nothing more in case they fail or get into a car accident Etc, I need to have appropriate funds to replace them. Progress payments should always hold back at least 10% until full completion and job site cleaned.

@Derrick Burtle Stop using a buyers agent. There is no benefit. Make your offer directly to the sellers agent. Two people bring identical offers, one has a buyer's agent and one doesn't, which offer wins? The one without a buyer's agent. Why??? No buyer's agent to split the commission with, seller's agent gets double the commission. Remember this game is about money, give yourself an edge and drop the buyer's agent

@Thomas S. "There is no way you can be serious about that statement. Landlords make money by using leverage. If you are not using leverage, considering all factors, you most likely are losing money. " Foolish statement. Home rental cost is everything a homeowner has, plus more cost, plus profit. Plus an intentionally profitable purchase price. Only a foolish person rents for less then this which we can't speak to. Don't agree with leverage statement either, I make a killing on mine... and not paying a bank interest significantly increases profit benifit plus no debt risk which allows for great sleep at night.

@Aaron Silk you would be willingly lowering your own property values by renting to a sex offender. When families search, as they do, and see a sex offender, it makes the neighborhood less desirable compared to similar neighborhood without one. This lowers desirability = lower rents and property values.

I owner occupy a duplex. Next door property is also a duplex, owned by a retired couple. I've asked them to sell it to me, that I would pay market price because the location is convenient for me. A year later I brought it up again, even offered to 1031 one of my higher value SFR in the same area. Basically get a soft no, "not interested at this time", never even asked me for a dollar amount. I paid 68k for my duplex 2 yrs ago before I rehabbed it, they paid 76k for theirs 5 yrs ago. Both were severely outdated but in a gentrifying area. his is still a pretty rough, low income property Any reasonable suggestions, creative ways, ideas on how to convince them to sell? Not sure typical seller financing would interest them, doesn't seem to be very popular in this area.

Curious what others think good percentages are to be invested in real estate compared to the various investment vehicles such as stock market, peer to peer trading, etc. How are you chopping up your nest egg?

Personally I am over 80% real estate and am just wondering what is a good percentage. 

Also, how much do you keep in cash reserves per property for vacancy & maintenance? do you automatically portion out of each rent for future maintenance/specific account that just keeps getting bigger? seems like its easy to want/be tempted to just invest any large sums that you build up from these maintenance acct instead of truly keeping them liquid. I would say im a bit more on the conservative type, I personally wouldn't consider debt a form of reserves for maintenance.

What are your thoughts?

Welcome to both of you. Nice to see other other new real estate investors in the area. Ive only been doing it for a couple years, I have 4 rentals in Omaha and so far so good! I was the same way, I listened to the first 100 podcasts pretty quickly. Podcast 61 is my fav, it goes on for 2 hours because the topics and insight are so good (and them arguing lol) Ive listened to it atleast 3 times, might be time to hear it again. Allot of good knowledge in them. Cheers!