All Forum Posts by: Ron Flatt

1st up,  I have looked at properties, that the owner did not have keys.  He was with me, and I entered the property and looked at it.  Sometimes I bought and sometimes I did not.  

If a set of locks is going to make or break a deal, you need to pass on the deal.

I keep locksets from other units that I move around some.  I am slowly changing to the SmartKey system, so I can just rekey it.  

Some REOs and other foreclosures you may not be able to see the interior.  Plan for the worst and if it comes up better great.  

I love my little 2/1 in Waco.  It is a solid C property.  Same renter for 2+ years, with hopes of buying it.  

35K purchase, 15K remodel.  Rent $725 per month

In my area, I am using a local bank with a 15 year fixed rate.  These notes are always under 50K so not many folks want them. 

Credit Unions and if you can find a good mortgage broker.  On my personal home I have used the same broker, this is my 3rd refi.  He gets me a competitive rate on a 30 year,  He just doesn't do portfolio lending, or small loans.  

Listen to the wisdom in the  post above.  When you let emotions talk instead of the numbers you will get bit in the backside.

There are plenty of markets that you can put down $1 mil, and still get a 8+ cap.  It will cash flow that you can rent what you want and make money on your investment also.  

I will admit I would live in almost any of my units, but my wife would not.  So I have a home that she is comfortable with and I have my investments that are securing her future when I am dead and gone or vise/verse.  Real Estate is a business, look at the Numbers, be realistic when it comes to appreciation (and sometimes depreciation).

I admit I am not familiar with the CA market, but when your talking of 1/2 mil per door, it just does not make sense.  

As in the earlier post, almost anyone on here would make sure you got more than a 4 1/2 cap.  I just offered a man 6%, with quarterly interest payments and balloon at end of 10 years of 110% of his investment, With him having 1st and only position on assets he is investing in.  

You can do much better than the 7 unit, IMO

I have had several tenants that were non-english speakers.  They had children or someone to help them.  I went over the lease, and felt sure they understood as their child or relative relayed it to them.  

They have always been great tenants for me.  I have even hired them to help my maintenance guy, when we were swamped.  I good long term tenant is always a plus, but in the end you are the one that has to be comfortable with them.

Wow,  I am sorry you had a bad experience.  In the end, the responsibility still lies with you, you did buy it.  

Get a team where you want to invest.  

Or team up with someone and JV with them on some places, make sure they have skin in the game too. It will help you invest out of state and build their portfolio at the same time.

Depends on the market you are in.  I truly believe if you search you can find a light cosmetic you can feel comfortable with. 

 @John Leavelle has a great idea to get a general contractor.  

JV is also an option,

Enjoy and move on.

I tend to work with the same folks all time.  Every now and again we have theft.  Usually, we work things out between us.  Sometimes they have something at their shop, or I will have something or I go re buy it.  They usually take care of me on the invoice at the end.  It works for me.

Usually, when I have a theft, it is the neighbors.  When we have theft, I look at neighbors first.  Had one neighbor who thankfully moved and that landlord has a better tenant.  I have not had near the problem with theft, once he left.  Amazing when one person moved, the crime in the area goes down.  

My next question, did you speak to the neighbor?

I do not mean to be insensitive but this your property.  Mice cause other problems.  

The tenant would either permit exterminator to do his job or they would be evicted.  I really have a problem with tenants being concerned with rodents over my property.  

I understand the safety of their children, but if a reputable exterminator is doing the job, he will make it as safe as possible for children and pets.  

Before they move in, I make sure tenant knows what I expect.  What few times I have had the issue, I let them know to either let them do their job or move.  (it was an electrician).  With the upper floor being the only unit having mice problems, they need to keep their unit cleaner.

Unsure if this helps.  The items I look at is the market stable and looks to remain that way.  (How did it fare from 2007 to 2010).  Can I buy properties that cash flow and have some appreciation?

I still cannot wrap my head around the turnkey situation.  I buy and manage properties for myself and a partnership where I am one/third owner.  I am currently buying out the other partners, because they wish to retire.  

Instead of doing a Turnkey, why not find someone that is doing it, Going into a joint venture with them.  They have skin in the game.  That is what I will be offering once I get my partners bought out.  

A separate LLC, how ownership is divided, the LLC own checking account. How and when money is divided? A term limit, and how property will be either liquidated to end LLC, or to extend. My thoughts here is, "Who is going to look out for the hens in the chickenhouse? It will be the one who is gathering the eggs)

My attorney says we need to talk about it some more, but it will be available in 2018, for the a stable area in Central Texas.