All Forum Posts by: Alexander Szikla

The cost is relatively little for LLCs and they provide a great buffer against liability. Besides the financing hurdle with LLCs, not sure why you wouldn't. 

An ounce of prevention is worth a pound of cure. The easiest way to avoid evictions is by ensuring you have quality tenants via rigorous vetting methods. 

1. Background Check

2. Credit Check

3. Income Verification (W-2s, Paystubs)

4. Employer Reference (Call them!)

5. Prior Landlord Reference(s) (Call them!) 

1. Credit Check

2. Background Check

3. Income Verification (W-2s, Paystubs)

4. Employer Reference - Call and check

5. Prior Landlord Reference(s) - Call and check

Interest rates make it more challenging now - but net net, at least you would be paying rent to "yourself" and building equity. Plus, it is a "one way bet". You can always refinance if rates drop. 

I'm in New York - let's connect! 

Yes - DM me

An asset is worth the future cash flows which it produces. Simple as that. 

Appraisers use past sales - but frankly, this is flawed and often why I take issue with appraisals as both an agent and investor! 

Certain neighborhoods / areas offer investment opportunities that provide more consistent cash flows while others do not and the associated required rate of return should reflect this - hence affecting value.

I agree that appraisals should be "color blind" but not blind to income/renter demographics; appraisals need to update their approach and stop relying so heavily on the "rear view mirror" (previous sales). 

Leases - Your state likely has a template form. I recommend beefing it up as others have recommended. Happy to share my lease if you DM me. 

Screening - Don't stop with credit checks! Run full background checks and verify income, employment, character, etc. through paystubs or tax returns and a call with the applicant's employer and prior landlord.

Vacancy - Easy one here. Make sure (as per your lease) tenants give you 60 day notification prior to move-out. Once they make their intentions known, schedule showings one day per week at their choosing. 

Payments - All my tenants use Zelle, this isn't the issue. 

I recommend you self-manage for about a year to learn about the specific issues associated with your property. 

Something else no one is discussing is the financing piece. What are rates like in Sweden? How about Loan to Value ratios? 

And, most importantly, how long are the terms on the loans extended? 

You can also look into purchasing commercial properties that are triple or double net. 

With a triple net property / lease, the tenants (i.e. McDonalds, CVS, Mom and Pop's Bake Shop, etc.) pay for all the expenses related to the property including:

1. Taxes

2. Insurance

3. Common Area Maintenance

With a quality credit tenant (i.e. McDonalds) you will certainly get the rent in a timely manner each and every month - however, there is a trade off to this in the form of lower yield. 

Comparatively, Mom and Pop's Bake Shop might provide higher yield - but those tenants usually sign shorter term leases. 

In either case, your big risk is re-leasing if/when the time comes. 

You can also purchase a small retail or office building where you still need to take care of the taxes but your tenants manage everything else. Just some food for thought!