All Forum Posts by: Jeff G.

I don't currently have any bird dogs. But, I was thinking about using the "flex option" contract. Google it and see what you think

@J Scott

 Well, since you bring that up, in addition to the usual inspection period clauses I also have the following:

Since I've never been to law school I didn't want to come off as giving legal advice as I'm unqualified to do so.

Personally, a low earnest money deposit. If a deal falls through:

• I send them a copy of the original contract and stamp it "cancelled."
• I mail the seller a check or money order in the amount of the earnest money deposit.
• A copy of the cancelled contract says in my file drawer.

I don't open escrow until I have an end-buyer committed to buying the property. @Jerrell Slay If you open escrow fist you might be out a bit more money.

Oh God, yes!

First of all @Rod Desinord a good mentor will be able to answer your specific questions in a timely manner. Second of all they'll be able to proactively teach you new stuff so you you're less likely to get stuck in the first place.

Also, not all mentors are of the $4,000 buy-in and $100 an hour types. [Removed]

Also, become active in BP and you'll get to know lots of people with specialized knowledge that will be helpful. Some of them you'll lean on a little others a lot. But you'll be providing them value in return so it's mutually beneficial.

@Joe Fairless

 I just wanted to make cheap jabs at Detroit. :)

@Brandon Barnic in general when someone says a neighborhood is class A, B, C, D, etc. they're generally referring to one of a few things depending upon context:

• The general level of income of a neighborhood.
• Sometimes very specifically the average credit score of a neighborhood.
• The level of "hassle" an area is likely to give any landlord over things like collecting rent and respect for the property they occupy.

Others are welcome to let me know if I have this wrong. But, I think of them as follows:

• A neighborhood. The McMansion and country club crowd. Yes, some of these people are renters too. Doctors, Lawyers, and CPA's live here. Also very unlikely to miss a rental payment and they may have rentals of their own even if they rent themselves.
• B neighborhood. A well established middle class neighborhoods. Lots of 3-4 bed/2 bath homes with decent yards. Engineers, and highly skilled professionals live here. Unlikely to miss a rent payment unless someone is hit by a bus.
• C neighborhood. This area is distinguished by smaller "cookie cutter" homes, some under 1000 square feet with 2-3 beds/1 bath with few frills. You may have incidental delays in getting rent from this crowd. Some areas are better than others.
• D neighborhood. The low income part of town. "Unlicensed pharmacologists" live here, lots of them. Things "just break" around properties in these areas a lot. Get used to tenants trying to live for free on your dime.
• E neighborhood. Think of the most violent areas of Detroit. Yes, that kind of neighborhood.  And to think, Detroit was once the "Paris of the Midwest," really.

@Joe Fairless do would you consider the above a far characterization of neighborhood classes?

@Luis Capriles 

If this is your first investment property do your self a favor:

Talk to an insurance agent about renters insurance policies and what kinds of renters policies you can make claims against and under what conditions. You should consider making your tenants get a renters policy as a part of your lease. If they damage your property in excess of the security deposit potentially you have someone besides a tenant to extract monetary damages from.

@Paul Ortiz I think it will change how some people pay rent, mostly the unbanked. Consider the following case: 

You have a young family with sufficient income to make rental payments and bruised but adequate credit. However, a few years ago one of them wrote a bad check and this was reported in Chex so that person has difficulty opening a bank account. You decide to accept them as tenants if they can pay you electronically between the 1st and the 5th of the month like everyone else. They can't write you a check and you don't like to accept cash for safety reasons. What do you do?

You sign them up with a payment processor that accepts bitcoin and pays you in your choice of dollars or bitcoin. The processing fee is negligible: somewhat less than paying you by money order. Everybody wins.

I think low income tenants will eventually pay electronically in this way. I could be wrong.

@Noel Fleming Jones and @Chris T. 

You might also take a look at Rentalutions they handle rent and also online maintenance requests. Cozy requires the tenant have a bank account. Rentalutions has other electronic options, including the option to pay rent with Bitcoin which clear much faster than an ACH payment. If the tenant pays rent in BTC, you get paid in USD unless you specify otherwise.

Welcome to BP @Christopher O'Sullivan 

I have an IT background too and I am trying to get into the multifamily space as well. Though, I'm looking for 3-4 unit homes not commercial apartment buildings.

Good luck with your deal!

~Jeff