All Forum Posts by: Nuhan Demirkan

Curtis, check out Resources/fileplace/contracts on bigger pockets. You'll see samples.

Obviously this guy knows the value of putting his money to work. He owns 30 rentals so he is use to the idea of receiving monthly income checks. Find out what he will do with the cash. If he doesn't need it offer him a note secured by the property he is familiar with at a reasonable fixed interest rate (I pay 5%). Amortize it over 30 years with a 10 year call. I wouldn't offer him any money as a down payment unless he brings it up. Figure out if you have to do any improvements to the property to get it rent ready. And use that as a leverage in place of the down payment. If this works out mutually you can buy the rest of his portfolio as he is ready to sell. 

Couple of quick items:

These guys usually sell their worst properties first. Find out his motivation to sell this one.

Remind him that no more tenants, toilets and termites. Bank gets paid no matter what. It is the ultimate passive income. Top of the food chain - stroke his ego.

If he does need some cash upfront as a good faith or vacation, etc. offer him a small down payment. There is no point in 50% cash, 50% finance.

Be careful if he wants to shorten the call period from 10 years down to 2 to 3 years. You will not have paid much of the principal by then. For 2 years he will collect interest and sell you the house near full price.

Good luck,

Check with the local codes on renting to students before you buy the house. Some cities do not allow having more than two tenants with different last names. This happens in college towns frequently. If you decide to rent to individual students number the rooms they are renting. If you have to take legal action to evict, the judge is going to want to know which room you are evicting. The utilities, that can be transferred, should be in their names. College kids could not careless about saving energy. Have the parents co-sign, students don't always pay on time. It is a high turnover rental but it is pretty profitable. Some students want 9 months rent, I never offered it. Hire someone to cut the grass and clean the house. This makes the city and the parents happy. Of course charge the tenants for the cost. Post emergency phone numbers, provide fire extinguishers, check the batteries in the smoke alarms frequently (they are the first to go) and get a good insurance guy/policy. Make friends with the neighbors to keep an eye on the property and to call you not the authorities. There will be parties...

Travis, you're basically asking for a $6K discount. I would give him the $6K and ask him to hold the note on the property. Talk to him about the advantages of being the bank. If he goes for it you have 29 more homes to buy with him being the bank. 

David, I have found that the real estate investment mailers are reaching the saturation point right now. I have rentals and I receive cards/letters from would be buyers almost weekly. Some from my buddies. The absentee market is being bombarded by these mailers, at least in my market. You have to get a bit more creative to which list to send to and what to say. I have started sending out brochures about my company with testimonials from my previous sellers. And just because you did not get many responses doesn't mean you won't in the future. I consistently get calls from my previous mailers from a while ago. 

This happens all the time...

Call comes in,

I'm calling about the house

me: sure what would you like to know?

How many bedrooms?

me: 3

3?

me: yes

How many bathrooms?

me: 2

2?

me: yes

How much is the rent?

me $1600

$1600?

me: click!

Craig, I've done few myself but I don't specifically target that market. If the opportunity presents itself I certainly mention it to see if the seller will agree. I guess one group to market is to the Notice of Default list for a certain mortgage amount. Another method I really like is the seller financing. For that you can market to free and clear absentees. 

Here is a long shot but it is worth mentioning. Call the county public utilities and ask them to check it out. Doesn't cost you anything. It may be that the break is on the county side. If so they'll take care of it at no charge. I had to pay $4K for my rental and insurance does not cover it.

In 2008 speculators lost, investors made a ton of money. Those were the good ole days... I wish I could buy like that again. Your buddy doesn't know the difference between an investor and a speculator. Chive on...

Toyin, sounds like you hit a nerve... But here is my two cents worth...

If buy and hold doesn't work why the big apartment complexes?