All Forum Posts by: Scott Steffek

Dan,

I'm not familiar with the BP lease, but I think what it means, is that every time (month), a tenant is late, the rent is increased ONLY for that particular month. Make sense?

Ray,

It will impact landlords because they'll tell you how much you can charge for rent. So let's say you have an SFR and you're currently charging $1200 a month. They could very well come back and tell you that you can only charge $1000. That's a $2400 loss to you in just one year. So what do you do when they raise your taxes and you can't raise the rent? You lose! IMO, this bill will stop investors from buying investment properties, which will leave a "glut" of properties on the market and will also decrease the supply of rental properties. It's a no win situation. Government needs to keep their hands out of the real estate business.

Ryan,

Welcome to BP. You picked a great site to learn and meet others in the business. I'm in Crown Point and I work with investors. Obviously we're familiar with NW Indiana. If I can be of service, feel free to message me. Best of luck to you.

Scott

Jay......Amen. I was wondering if someone was going to bring that up!

Alberto,

I agree that the concern is getting paid by the government. I highly doubt they're going to leave landlords stranded and not pay them. That seems highly unlikely. Diversification can definitely help lower the risk. 

Ashley,

This is from the article: " An Arkansas property manager has reversed her previously stated position that because of the government shutdown, her tenants would have to pay the full amount of their rent or face eviction. “They will be getting a letter today letting them know that we would be funded and that they will continue paying the amount that they have been paying,” Annette Cowen, the manager, told HuffPost.

So it seems no one is getting evicted. I can't imagine any landlord evicting any tenants, unless they're a problem tenant.  Those landlords will use the shutdown as a crutch, to evict them.  So maybe that's a blessing for some landlords. But the government will pay them their money. Does anyone truly think that landlords are going to evict good tenants because of the shutdown?  They have to pay to file the eviction, they have to pay attorney fees, they have to go through the entire legal process and most likely have to pay for the sheriff to evict them. God only knows how long it will take to get them out too. Then they have to pay to get the place back in "rent ready" shape. They have the expense of finding another tenant and they'll most likely lose a minimum of 1 months rent, if not more, trying to find another renter. I find it very hard to believe that anyone with common sense will start evictions on "good" tenants. I understand the landlords want their money and I don't blame them in the least. But it's NOT the tenants fault. After all, the landlords chose to rent to people on Government assistance!  It seems this is much ado about nothing.  

I've been in the real business a long time. I work with investors all over the country and also overseas. We find them properties, we rehab them, we manage them and we flip them. We do everything an investor may not be able to do, because of their location. I'm willing to mentor someone for FREE, in exchange for you helping me increase my exposure and income, from placing Facebook ads. You will need to be very efficient in helping me do the following: 1. Find seller of homes in the Chicago area. 2. Increase my buyers list for the same area. 3. Show me where to place ads or how to get my name out there and also more exposure. You, in turn will be mentored for whatever you need help in, when it comes to learning: 1. Wholesaling in general 2. How to calculate costs on buying an investment property. 3. How to sell a property. 4. How contracts work and how to legally get around some stumbling blocks. 5. How to figure out rehab costs and the ARV. I can help you in almost area you need, to get your wholesaling business up and running. However, I only do single family homes and multi units. I am not well versed on land and commercial deals. So if you can help me, let's talk. Please, I'm not able at this time to mentor someone without getting something in return. I'm very busy and have to spend my time wisely. But if you can help me with Facebook, let's connect and get the ball rolling right away!

Mark, 

Wow. You're certainly a popular man on this thread!!!

Jason,

Yes, the BRRRR will work. But you might want to be extremely careful with a deal like this. Kenneth made a great point about the ARV. I've been doing this business a long time and right now the market is very tight. When I read your post and looked at the sell price and the ARV, I couldn't help but think somethings not right. Even if the ARV is for both units, it still raises a red flag. If you divide the ARV in 2, that would most likely mean that each unit is worth about $88k. You said you're buying for $49k. So even if the ARV of $88k per unit is correct, you're still buying at a very low price. You're at what.... 55% of ARV and that's only at the $88k ARV. That tells me that the unit most likely needs a lot of work or that the ARV is not correct. If the ARV is actually $175k for the 1 unit, then that's even "worse." Most likely there's major issues with the apartment. Issues that could drain your bank account. Maybe the numbers are correct and you're getting a killer deal. I hope for your sake, that that's the case. But with the market the way it is today, I would take a long hard look at this deal before you move forward. Something just doesn't seem right. Best of luck to you.

Devan,

Welcome to BP. You might want to look for an owner financing deal. They're not easy to find, but they're out there. I'm in the process of selling a finance deal to one of my investors. She's putting 20% down, making payments of $200 a month and she has to pay it off in 4 years. Typically, owners want 25% or 30% down and want more than $200 a month. But she was very lucky that we got her this deal. The seller is tired of the houses, doesn't need the money and just wants out. So maybe hook up with a "quality" wholesaler in your area and see if they can find you a good deal. You can always try to find something yourself. If you find one at 20% down, you have yourself a rental! Best of luck to you,

Scott