All Forum Posts by: Randy Lance

@Paul C.

I think that you have a very interesting situation on your hand. I think you have to look at the math. Do you know your market and what is available compared to the property that you have for rent? Would they be able to find something for the same price or what you are asking with the new lease?

If you take the two years lease and lower it by $25 a month, you would receiving $600 less in rents over that time-fame. What would it cost for turnover? If you leased it to a new person, what kind of rent would you get?

Don't be afraid to lose a tenant if you have a product that is in demand. A good book that has been mentioned here on Biggerpockets is Landlording on Autopilot. In that book he makes all of his leases for 36 months. Maybe something to consider going forward.

Randy

@Drew Denham

First...welcome to West Michigan. I think it is the best part of Michigan, but then again I am a little bias.

Which city is the work in? I have used a guy on my properties that i really like. Good attention to detail and not someone that seems to price himself out of the running for projects.

If interested message me and I will send you his contact info.

Randy

@Krystyna Fennelly

Krystyna, the couple suggestions that I have are:

1. Do you know any commercial brokers? If so, lean on them to find you a few investors that may be willing to do an off-market deal. If you do not have a commercial broker contact, interview a few.

2. For the 1-4 units you may be able to get different information on MLS reports than a 5+, but look for owners that have owned for 10-15 years with high equity and send them a note or give them a call. Tell them you are looking to buy.

Most importantly, your feet have to hit the street. I have not found that many deals will come find me unless I do something to get my phone to ring or build/foster a relationship with a banker, title company, commercial broker, REI meetups, lawyer, CPA, etc. All of these people talk with many more people than you could possibly talk with, you have to get them to think of you when someone says something about an investment property.

Randy

I have some general question for all of those full time W2 workers that also invest in real estate.

1. Does your employer know that you invest?

2. If so, what was that conversation like? Was there a concern of priorities between the W2 position and the real estate portfolio?

3. If not, why not? Is there an advantage to keep it a secret?

I am just wondering what others have experienced as I venture into this territory.

Thank you,

Randy

Welcome @Craig Vandenberg

@Craig Vandenberg

See you around.

Randy

@George P.

I just a follow up to a possible leading institution that could be used for future deals. I talked to Chemical Bank, a Michigan bank, and they can do unlimited portfolio loans at long as you have the reserves and down payment. The only concern I saw with them was that they would be in the form of an ARM. I think this is similar to what @Mark Ferguson is getting for his deal.

I have been looking for my next deal and have been limited by lenders limits. Maybe they can help you.

Randy

BP crew, i have a question because I have not dealt with anything like it in the past. I have had a tenant in one of my multi-units for roughly 7 years now and have the past few months have progressively gotten worse in health. In fact, the last two weeks he has been in the hospital with congestive heart failure and 100% oxygen.

He has since made it back home and now has oppcuational theropy coming into the unit and providing assistance. One of the requests that the theropist had was to make the apartment more handicap friendly, i.e. grab bar in the bath and more saftey issues through out.

My question is, what is my responsibility with this? Should I put up the bar and other items or since it was not leased as a handicap apartment do nothing? Again, i have not had to deal with this situation before and just looking for advice.

Thanks crew.

Randy

@Giovanni Isaksen it must never have been done. I will start to call some companies around my local area once this freeze lets up for a couple days and see what thier feedback is.

Welcome @Anthony Bell - Great group of guys here. Look forward to seeing you around.

As others have mentioned, December seems to be the time that i give an incentive for the past year. Typically, I give a gift card to a restaurant or near by store. Treat people as you would want to be treated if you were there. - Golden Rule.