All Forum Posts by: Account Closed

Cash pays nothing right now.  In fact, if you factor in inflation, it pays less than nothing.

The beauty in real estate is that you control your return because you control the structure of the deal.  

That being said, putting money into anything is NOT better than putting into nothing.  Keep panning through that dirt until you find that gold that gives you the ability to structure the return that you want and then, put your money to work.

You should really get the form you are seeking from an attorney.  It is too important to risk getting it from another source that might be wrong.

If you are going to do a lot of this, create a standard rehab finish "package" for bathrooms, kitchens, and other rooms and price it out.  Then reduce it to cost per square feet.

Then when you go into a place,  all you have to do is measure the appropriate room, do the math, and you'll have your number.

I use a process server to hand the tenant the 3-day notice in person.  That keeps it from becoming confrontational because you are not personally involved, and it is proof the tenant received notice, as a  process server can testify or provide an affidavit to the court.

I know it's a lot of work, but meeting each tenant in person is the way to go on such a move:

1. You will get a chance to see the way the tenant lives in your property.
2. You will get a sense of whether the tenant will stay or move.
3. You will get a sense of whether you want to keep the property or sell it.
4. You are building a relationship with the tenant in a positive way if you handle it properly.
5. If you want the tenants to sign leases, you should present it to them in person to increase the chance of the tenant signing and to build good will in the process.
6. You come across as a stand-up guy by meeting in person.

Your local REIA is a good source for contractors for you. The ones that join are the investor friendly ones who understand our business.

The answer is among the agent, your conscience and you.

Flat fee works.

Paying the agent a commission on anything you end up acquiring through the list the agent give you works.

Entirely up to you.

Here's the way to look at it, though.  The agent is getting paid on a deal where he or she wouldn't because of you.  Anything the agent gets is a windfall.  Perhaps that mindset will help you with your negotiations.

Cap rates are relative to the buyer and the class of property and not necessarily the geography.

Institutional investors will tolerate a much lower cap rate than non because they only want A and A+ properties.

Entrepreneurial investors want a higher return and therefore will go for B and even C properties.

That's true of any market, including Columbus, Ohio.

You have to pay to play.  Remember - you enter a contract with them, they can not sell it to anyone else.  You can't expect to tie up someone's property and not compensate them for lost opportunities if you walk away.