All Forum Posts by: Steven Stokes

i don't know about your state but this sounds like too much money to be a small claims court issue. Which means you will have to hire an attorney. Your attorney will most likely try to settle the case but you'll most likely will still be out of pocket. And that's even if he decides to pay up and not just ignore the whole thing.

If he's ignoring you then bug the crap out of him even if it means calling him multiple times a day. Let him know you're not going away and you will not stop calling until you get satisfaction.

I have dealt with a number of contractors of various ethical standards their biggest fear is not a lawsuit but the person who won't go away.

I one had a contractor who wasn't completing a job I needed so I hired someone to call him every couple of hours until they got a good of him, and they changed their phone number so he could never tell if it was my person of a potential customer. Long story short, it got done.

So times extreme measures are best if you want the results you want.

I'm going to agree with you that's really expensive and the first month's rent sounds like overkill on an already expensive PM.

Every market is different and every section of town may require different rates. But I would call around to different PMs and get Biggs from them. Check out their rreferences and go with the one you're the most comfortable with.

Unless you're married to this person keep looking.

Just my opinion.

also don't limit your search to the home owner. Any previous renters or owner who have lived in the property. Will be a good lead.

Facebook and LinkedIn is becoming more useful for taking down kids off the parents.

And my best source for information credit report header information. Here's how you get that, make a deal with a local private investigator tell them what you are trying to do and you will pay them I finders fee if you can make a deal out of it. Some might say no to your no money request but you only need one to say yes. It doesn't take them 2 minutes to get the information so you're not asking for a lot.

the reason why ROI is the standard (not only in talk estate but in most business deals) is because a person wants to know what they are getting for their money invested.

The maximum allowable offer only takes into consideration the amount of discount. I can buy properties using MAO all day long but if I have no one to buy it at a higher price then I'm kicking my own butt.

I'm not saying using different financial formulas isn't good for determining your risk and return. I am saying if you're using a different measurement than what your investors are using or your brokers then you may run into some trouble because you're not on the same page..

i life in Tacoma now too.

I think I know the seminar you're talking about and I'll be honest, I've never tried the software but from my experience this types of programs are outdated, inaccurate or just unhelpful.

Not saying the one you purchased is not good, it might be the best thing ever!

But having said that, I still think going to the property records office and looking it up for yourself and networking with other investors, contractors and bird dogs is the best and most proven way to be successful in real estate and its FREE.

I've seen a lot of seminars come and go all saying they have a magic bullet or secret formula that will automatically throw money at you, all you have to do is click a button on your computer.

I haven't found that magic bullet yet.

What I have found is 90 percent of the people who buy these courses and programs never do anything with it and another 5% folds at the first or second "no" from a seller.

I believe being successful in real estate takes two things persistence and patience.

Persistence to keep picking up the phone and patience to know you may talk to 50 people before you get a yes but it'll come. Someone is going to say yes if not to you then to someone who kept calling until they found that person.

Just my opinion.

Personally, I think their past rental history is the best way to determine future rental behavior. If they always paid their rent on time at their old place they most likely will continue at their new place.

I have rented to tenant who only made 2x rent and never had a problem and I once rented to someone whose income was more than 5x rent and had nothing but problems with them so it really doesn't matter how much money they make, what matters is if they will give it to you when it's time to pay.

Just my opinion though, good luck!

This is a repost but I think it will help you and it directly answers your question.

The only advice I would have if you are considering bringing in a partner is three things:

1. Have a solid full business plan of what you are planning on doing, what resources will be needed, who are the parties involved (attorney, accountant, other investors), what is the business strategy (wholesaling, flipping, buy and hold), what is the market (upper income, working class), economic factors (is it a raising area or declining area of job growth, population size, businesses moving in or out).

So many times I talk to new investors who have looked at one or two houses and want to borrow $100k from someone because it looks like a good deal. When they have no idea about the market, their strategy or our exit and getting the money back.

If you want to impress an investor have a rock solid plan that way, your investors will know that you're at least prepared and have done your homework.

2. A solid contract that spells out in black and white, who is responsible for what and who does what and who has final say on overall strategy and day to day issues.

This is where I see the most arguments and disagreements coming up when people don't agree on what should be done (especially if the deal is losing money) and everyone thinks they're in charge because they put the money in or they done all the work. I've heard it from both sides. Have an attorney draft an iron clad contract at the beginning and it will keep you out of court later if things go south.

3. Borrowing money from friends and family is tricky and I personally wouldn't recommend it. There's a saying I remember that goes if you want to ruin Christmas let a family member borrow money in June.

If you have to borrow money from friends or family make sure you both agree that it's just business and have an agreement for what you will do if the money doesn't come back the way you planned or doesn't come back at all.

That way everyone can prepare themselves for the worse and there's less likely to be hard feelings because it was already planned for if things went sideways.

That's my thoughts, I hope it helps and good luck!

This is a repost but I think it will help you too!

The only advice I would have if you have no money is to consider bringing in a partner and make sure you do three things:

1. Have a solid full business plan of what you are planning on doing, what resources will be needed, who are the parties involved (attorney, accountant, other investors), what is the business strategy (wholesaling, flipping, buy and hold), what is the market (upper income, working class), economic factors (is it a raising area or declining area of job growth, population size, businesses moving in or out).

So many times I talk to new investors who have looked at one or two houses and want to borrow $100k from someone because it looks like a good deal. When they have no idea about the market, their strategy or our exit and getting the money back.

If you want to impress an investor have a rock solid plan that way, your investors will know that you're at least prepared and have done your homework.

2. A solid contract that spells out in black and white, who is responsible for what and who does what and who has final say on overall strategy and day to day issues.

This is where I see the most arguments and disagreements coming up when people don't agree on what should be done (especially if the deal is losing money) and everyone thinks they're in charge because they put the money in or they done all the work. I've heard it from both sides. Have an attorney draft an iron clad contract at the beginning and it will keep you out of court later if things go south.

3. Borrowing money from friends and family is tricky and I personally wouldn't recommend it. There's a saying I remember that goes if you want to ruin Christmas let a family member borrow money in June.

If you have to borrow money from friends or family make sure you both agree that it's just business and have an agreement for what you will do if the money doesn't come back the way you planned or doesn't come back at all.

That way everyone can prepare themselves for the worse and there's less likely to be hard feelings because it was already planned for if things went sideways.

That's my thoughts, I hope it helps and good luck!

I agree with what everyone is saying here.

I would start out with residential - learning the basics of the contracts, financing, making a profit.

Then go to multi-family complexes - larger units, more units, vacancy rates, CAP and ROI.

Finally, commercial with AAA net leases, master lease agreements, anchors and sub tenant agreements.

Each step up has it's own language and its own complexity. With commercial being the most complex. But by starting out in residential, even if you don't plan on staying with that investment gives you a foundation that you can successfully build on and use as you climb the ladder to more complex and profitable deals.

I hope this helps.

@Alexandra King 1.The title company will do a title search. 2. All monies you put into the deal goes toward the purchase price unless otherwise stated. Your deal with the end buyer most likely will be completely separate but it depends on how you write up the deal.

The only piece of advice I have especially if you're new to investing in SoCal give the investors really good deals at first. Because you're new and unknown many investors may not be interested in working with you unless you're offering them a really good deal.

Do a couple of small profit deals for you so you get to know who the players are and they get to know you.

Once you've established yourself as someone they like and can trust to get a deal done then you can start asking for more of a cut of the profits because now you're not an unknown element in the deal.

Just my opinion. Good job and good luck!