All Forum Posts by: Lam N.

Sydney, where you at? 

Sure, cash for keys will be cheaper just like paying paying bribes every time. In the long run, though, you're not doing yourself and the rest of us landlords a favor. 

As for me, I don't care how much it would cost me.  You mess with me I am doing what it takes to give you an eviction on your record.

I just had a tenant offered to pay me all 5 months in full and move out so they don't get an eviction. They stopped paying because some family told them the cdc moratorium meant they didn't have to pay rent. I spent months explaining to them that is not how it works.  I finally filed and had the sheriff serve them.  When they called and offered to pay in full what they owed, I said no and pushed through the eviction. They now got an eviction on their permanent record. Next step is I am sending my lawyers to garnish their wages. I don't care that this is an inefficient way to deal with this. I refuse to reward for bad behavior.

But it is your property. Do what you think is best for you. I'm just saying cash for keys is rewarding for bad behavior. You are feeding wild dogs and then ask why they keep gathering around your property demanding more food.

I have friends who have had tried section 8. Many horror stories. So for now I am not joining the section 8 thing.  At the moment most of my tenants are paying on time every month. I select working professionals so no problem. Among my tenants are paramedic, nurses, IT, banker, dieticians, etc. The only problem tenants I have are holdover tenants from previous landlords I bought properties from.

I don't know anything about Oregon. Just put of curiosity, what do you mean cash for key is mandatory there?

Evict.  If your courts are still open, file eviction papers RIGHT NOW.

I solved this problem a couple years ago.  And the solution to this problem is simple.  When I choose tenants, I lean toward people who will see the rental as their home instead of just a temporary place.  This meant I give them the freedom to paint the walls whatever they like.  Give them certain freedom that most other landlords don't give.  This way, I've had tenants spend their own money to have a central AC installed.  I've had tenants who spent their own money to put in a fence.  Etc.  

As long as they view it as their home, they will take very good care of the place.

I recently got a tenant spending their own money to finish the basement.  I know, liabilities, right?  Let's just say I sometimes go a little outside the box.  They are happy there and have no intention of moving anywhere.  As long as their upgrades are within reason and I approve it, why not?

Most of my tenants have a flower garden of some kind.  

Another case of know-nothing PM. What a surprise.

 Thank you for the compliment.

There really is no "right path" to REI. Before I got started, I seeked out plenty of advices and read a lot of info in books and online. But what I have done in the last couple years have been completely different than the advices that I was given. Why? Because of the differences in people:

(1) Goals: everybody's got a different long term plan.  Some people want to buy and hold properties that they bank on appreciation.  Some people focus more on cashflow.  My goal is 100% maximizing cashflow cashflow cashflow.  I don't care if my properties do not appreciate.  All I care about is cashflow.  

(2) Resources available: Unlike a lot of investors, I did not start with a lot of money.  I also didn't have a lot to show, so I've been completely self-funded.  I personally know some investors that got backings and partners.  Some investors hold their full time job while doing this on the side.  Some people like myself quit their jobs and do this full time.  

(3) Levels of knowledge: Before I became an investor full time, I was a structural engineer.  I worked in the construction industry for a very long time.  So, I went into this already knowing a lot about renovations and whatnot.  I know plenty of investors that don't even know how to switch out a light fixture.  And that's ok.  There are plenty of ways to get to China.

(4) Risk tolerance: Some people don't want to take any risk, some people only want to take minimal risk, some people want to take moderate risk, and some people have no problem going all in.  I happen to be on the part of the spectrum that is all in.  I have given my business all that I have.  I don't recommend this to anyone, by the way.  So, I will either swim or sink.  Most investors invest part time so they have backup plans if things go south.  I've had people wanting to partner up with me but don't want to take any risk or do any work.  I tell them all no thank you.

The point is there are many pathways to success.  And everybody has different resources, knowledge, etc. to work with.  Not to mention the market that's available.  What works for me might not work for you.  And vice versa.

Makes sense?

 Ever since I stopped using PMs for my properties, I have come up with some rules of thumb.  These rules of thumb have been very helpful with finding tenants that are not losers.  As in the only people I have had to evict were either chosen by PMs or other landlords and I inherited them when I bought the properties.

(1) Find ambitious people.  I know, everyone says they are ambitious.  You need to find that so-called diamond in the ruff.  Credit check won't be enough.  Criminal check won't be enough.  I personally interview them, sometimes over lunch or dinner.  It's amazing what you can find out about a person once you get them to relax.

(2) People tend to hang out with like-minded people.  So, now you have found your good tenants.  Whenever I have a unit becoming available, instead of posting it to the public, I tell my best tenants and the word will spread.  

(3) Care about the property and the people.  Do what it takes to make the tenants appreciate you.  

There are several others I have.  But you get the point.  Among my tenants nowadays are IT professionals, paramedic, nurses, banker, business owners, etc.  These are working professionals.  There is no reason for them to try to screw you over.  As I have said before, the only problem tenants I have had were tenants either chosen by other landlords that I inherited or tenants picked by PMs.  Hence, I don't like PMs.  They have zero motivation to find you good tenants.  

With two dozen doors, all the tenants that I have chosen myself have been paying on time every time.  That's not coincidence.  

What Cole said.

DO NOT SKIP THE TITLE CHECK PART. 

Usually, an attorney or a title company charges an extra fee to thoroughly make sure the title is clean. Trust me, it is worth it to do this.