All Forum Posts by: Mica Moore

Well the results speak --you lost the property and you weren't even the one to pay the commission.  Why did it matter.  Also I don't see what there is to report -- there were no laws broken.  You just lost out because you didn't understand how it works. 

I would require a parent co-signer.  Let mommy & daddy finance their toddlers party house.  Get as large a deposit as possible.

 I am a former Realtor & property manager.  It's difficult to close first-time buyers/low end price range.  They have high and unrealistic exceptions. Low end buyers will wear you out with running all over town looking for gold when they can't even afford a stick of gum. I would then refer them to someone else since they are a huge waste of time & energy.  I focused on sellers, investment properties, and high-end buyers. 

Make the offer anyway - use the agent for your education. You are likely to find the cold shoulder from the seller as that is an unrealistic offer -- but do it anyway to prove the Realtor right.  Then you need to extract that education from the transaction and be realistic.

Have you thought about selling the property -- makes it a headache to walk away from.

The best thing to do is talk with a few local property managers -- long term tenants present unique challenges (State & local laws vary).  You won't get a court to say the maintenance is tenant responsibly but it's normal wear & tear because they have been there over 10 years.  All maintenance will have to come out of your pocket. Doubling rents on long-term tenants may be regulated as well.  

Property management is the armpit of real estate. The tenants drama, maintaince & vacancy. It looks like easy money on paper -- but the reality is a lot of hard work. A PM helps but it doesn't solve all the problems. Tenants are ruthless -- you would not beliive it unless you experience it.

The fix & flip side? Have you dealt regularly with contactors? Very big headache --- getting them to perform ontime & within budget or even to have the crew show up at all & do quality work --- takes a lot of patience & oversight. Think you can DIY? Not as easy as it looks either, you could run into an array of issues. Then when time to sell -- it could not be as quick & easy a sell as you think. You're on the clock to make a profit and 99% of the time there is more work & energy involved that estimated.

There are a lot of big dreams & big talkers in this game -- but few consider the realities.

Make sure you have a partnership agreement. An LLC is best. Its all fun and games until 1 of you disagrees with something. Have a contract.

Thanks all... I'm going to keep investigating. 

Title Company?  Tax Assessor?

The first step is to be sure that you have confirmed through your research that what you're asking in rent is realistic (despite you're own financial issues -- be honest).

There are Different Strategies:

Offer a move-in special (carefully craft the terms). Always give a rent discount instead of a security deposit discount (the SD is the main power you have over the tenant if things go south -- make sure they have enough skin in the game). Make it has high as possible.

An Example:  $2000 Security Deposit, 1st months rent free (never the other way around) or some other amount for a lower 1st month rent (1/2 off, etc.) -- if they sign a 1-year lease.  

A rent price of $1,695 looks more attractive to tenants (its a psychological thing - it under '$1,700).

Pets - it's complicated.  If you can find a no pet tenant they are worth more to your bottom-line -- cater to them (less potential for damage).  But pets are hard to avoid in this day and age -- so don't limit your tenant options.  Just be sure to screen them and collect an additional deposit (state laws vary).

Lock the door with a keypad & only give tenants the combo. Other useful ways to have deterrents: fences & security cameras, no loitering/trespassing signs.