All Forum Posts by: Account Closed

Find a way to get on local TV to start building a brand name for yourself.

I was at a real estate meeting where local TV personality Rob Black was the invited speaker (Google "Rob Black San Francisco"). He mentioned he would make sizable (with strategic intent) donations to various worthy causes because he knew high net-worth individuals would be in attendance at them also.

Even Warren Buffett would appear on local TV in his early days (1960s):

https://www.youtube.com/watch?v=REhg_bv7srM

Before lawyers were allowed to advertise back in the 1970s, they would join fraternal organizations and volunteer for a leadership position no one else wanted. The monthly newsletter would mention their name, occupation, and position. The idea is that when members needed legal help, they would think of their fellow member first.

Of course, there can always be too much of a good thing. The SEC, for example, warns investors of affinity fraud:

https://www.sec.gov/investor/pubs/affinity.htm

When I attended real estate investor meetings in California 15 years ago, one of the invited speakers said he used the affordability index to predict the top of the market. When too few people could afford to buy a house, it was a reliable sign real estate prices were about to drop. Motivated sellers (there are always a few in any market who need to sell and move) would have to lower their asking price to find a buyer who is able to make an offer.

https://www.investopedia.com/terms/a/affordability-index.asp

With regards to finding the local opportunity areas, the seasoned investors there said they followed the cement trucks to the job sites. Big Money isn't always right, but it does influence economic activity and markets.

When I investigate a dividend-paying stock (including a REIT), I compare its current yield to its average long-term yield to get an idea of its price relative to its dividend. I also look at the payout ratio to get an idea if the dividend is likely to survive an economic shock. If the dividend yield is way too high (too good to be true), I conclude the market has figured out the company is in trouble and is going to cut its dividend soon.

Where you see "smoke alarm" in this thread, expand it to "smoke alarm and carbon monoxide alarm" instead. Different states have different requirements (Google "carbon monoxide alarm requirement").

California, for example, has stringent requirements. When I was selling my San Jose home three years ago, my realtor made sure I had installed one (I had to provide her with a copy of the receipt from Home Depot [the one I bought cost around $40, which I mounted on the ceiling]). I was told appraisers take a picture of the CO alarm with their smartphone and provide it in their report.

I actually had a CO alarm installed near the fireplace (which my home inspector missed), and then I learned I had to have one installed (ideally) in each bedroom or as a tradeoff, in the hallway right outside the bedrooms as long as all the people in the bedrooms could hear it if it ever went off.

The application fee I paid covered the cost of the credit report (which was outsourced to a third-party servicer).

Collecting the security deposit and first months rent (by checks or debit cards) up front lets you know they have the cash. If these checks bounce, it's not a good sign. Since this money goes into different reserve accounts, my landlord wanted separate checks. (I didn't have to pay last months rent for my lease.)

The late fees in my lease are fixed ($100 for the first day late, $5 for each additional late day thereafter), but are likely related to the average monthly rent for the entire apartment complex (studios, one-two-three bedrooms).

This is a messy situation and I don't know the answer.

When Calling 911 Makes You a ‘Nuisance’ and Gets You Evicted

https://www.nytimes.com/2017/11/09/opinion/nuisance-ordinances-eviction-violence.html

My lease states the landlord will change the locks for a domestic violence victim (upon proper documentation). The lease also states the landlord can terminate or non-renew the lease if the victim allows the perpetrator to return even for a visit. The purpose of this clause is to protect the staff and other residents.

I called in a domestic disturbance last year when a couple got into a loud argument in the parking lot (one asked me to call the police and the other said there was no need to do so -- I let the experts sort it out). I don't know what the landlord did officially, but I noticed the couple were no longer living there a couple of months later.

I get mail sent to my apartment addressed to people I've never heard of (I've lived here three years). Some of these people probably used to live there. Most of the mail are catelogs (which I toss), but a few have been credit card applications. I have the bank-related mail returned to the sender.

Other scams are current homeowners who find their property listed for rent or for sale on Craigslist. Ten years ago, the FBI reported on the scam on house stealing:

https://archives.fbi.gov/archives/news/stories/2008/march/housestealing_032508

During the aftermath of the financial crisis, vacant homes were the target for burglars (copper is valuable). The For Sale sign or the realtor's lockbox, along with junk mail (advertising circulars left on the front door knob), are open invitations to the criminal element. There was a vacant house across the street from me (in California) where my neighbors found a homeless person sleeping in the backyard overnight.

Beware of the brazen daytime burglary. I've heard these stories from credible sources for decades (one occured on my street a few years ago): A moving van pulls up in front of a house in the middle of the day and movers in uniform load the contents of the house on to the van. The van and uniforms look legit in that they have the name of what looks like an official moving company. It's all bogus. The homeowner or renter returns from work or vacation to an empty house and wonders what happened. Wait until you return from vacation to post your photos on your Facebook page.

My advice is be vigilant. Give your property the lived-in look (mow the lawn, keep a house light on with a timer). Look for indications something isn't right (does someone want to rent it? has someone been in the backyard?). Make friends with the neighbors so they will contact you know when something looks out of place.

Since you live in Milpitas, with regards to your Prop 13 tax basis, if you are 55 years of age or older, check with the Santa Clara County Tax Assessor.

https://www.sccassessor.org/index.php/forms-and-publications/forms/60-ah-transfer-your-assessed-value-prop-60-90

When I sold my long-time San Jose home three years ago, I considered my tax basis transfer options if I remained in California, but decided to retire to a state with a lower cost of living and no state income tax.

Warren Buffett says whenever you get money to invest, you are better off putting it into your best idea rather than your seventh-best idea (the concentrated portfolio approach). He also says 98% of all investors, including professional investors, are better off investing it in a broad-based passive index fund (the extreme diversification approach).

https://www.youtube.com/watch?v=wbjPiYE-F4Y

I combine the two approaches with my CORE and EXPLORE portfolios. My CORE portfolio has the money I can't afford to lose and is invested using extreme diversification. My EXPLORE portfolio has the money I can afford to lose (5% of my net worth), but don't want to lose, and I'll be investing it using a concentrated portfolio.

DISCLAIMER. Warren Buffett has more money than I do, so ignore me and listen to him.

In Corporate America, people who are told bad news (like they're getting laid off) usually go through a three-stage process of shock, panic, and anger. If your tenant has his heart set on living there long term, the prospect of a new landlord, an unknown quantity at this point, might trigger a similar reaction.

During the 2008 meltdown, I knew of landlords who got into trouble when their tenants lost their jobs and stopped paying the rent. Finding replacement tenants was not easy because many people were out of work and couldn't afford to pay the rent. Vacant houses were often burglarized because the copper wiring was worth a lot of money. Those who wanted to sell had to lower their asking price, which created a vicious downward spiral, since once one seller did it, other sellers had to follow to stay competitive.

These "100 year floods" may not happen that often, but investors need to think through them ahead of time ("mental rehearsal") to know what they are going to do should they ever occur. Real estate, the stock market, the job market, the economy, whatever. Stuff happens.