All Forum Posts by: Tim Hendricks

Have a tenant that is trashing the property. Anybody have an attorney that works with Plaintiffs for evictions?

Started looking to invest in northern Al in January 2020. So far I have purchased 6 SFR homes which are all cash flowing nicely. Will be looking to purchase many more over the next couple of years now that I have learned a little bit about the market.

Not sure if this applies to Federally backed mortgages but I was recently in court to evict a tenant on my lease option contract. The judge said that he could not evict just because of late payments until after December 31. However if there were other violations of the contract, then he could find judgment for the plaintiff and have the tenant removed. So I let the judge know that the tenant had violated the contract in not keeping the house up to codes. We had received a letter from codes about the violation. So he immediately passed judgment in favor of the plaintiff, and the tenant was given 10 days to move out.

I started 20 years ago right after I met Robert Kiyosaki. See a picture of my wife and myself with Robert and Kim at www.HomeSweetHomeLLC.com (My wife is wearing Kim's fur coat.) I have purchased myself or with partnering with money partners just over 100 SFR properties. Contract lease price over what we paid averaged about $30,000.  I live on the monthly cash flow and when one sells (outright sell or lessee gets bank financing and pays us off) I put the money in the bank or use it for more purchases. We have sold 35 and the money we "created" by signing contracts was put into my bank account to spend as I please. It works good.

@ James Hamling

Agree with Mr. Hamling's comments. I met Robert and Kim Kiyosaki right after he self published Rich Dad Poor Dad. I believe that if you read RDPD, Cash Flow Quadrant, and Rich Dad's Guide to Investing you will learn the basic mindset you need. You can get the specific strategies you need here on BP.

I agree with the others that you will need to read every book you can find on investing and talk to people who have actually done it, not those who have done 5 deals and are now a self proclaimed expert. I started in 2000 and there was no Bigger Pockets. I attended several of the free 'come on' one day seminars, then read lots of books, then went out and started looking at houses. I looked at about 80 in the same neighborhood, all 3/2 about 1200 ft and all selling for 80,000 to 90,000. When I found one that I could buy for under 70,000 I knew it was a good deal because it only needed paint and carpet. Then I talked to people until I found someone who had money and showed them the deal. They put up the  money and I did the management. We both did well.

Fast forward 20 years and I have now done 95 SFR properties, sold some for cap gains and still have 60 on lease purchase agreements that average about $275/month positive cash flow.

I still have not attended any of the 3 day/mentoring $20,000 plus training programs. Most likely you can learn what they teach on the BP podcasts. I would recommend reading, watching, networking and doing at least 5 deals and make some money. Then if you still feel the need to attend, go ahead. I doubt that you will need to.

Just study until you know a good deal when you see one. Math will overcome the fear.

When this was first explained to me I could not stop smiling for days. 

Print your own money, legally.

Instead of swapping hours of your life for dollars on a job, do what many wealthy people do, print your own money. You say, that is illegal. Let me expain.

I am not suggesting that you get a printing press or copy machine and literally print paper money. That is illegal. What I suggest is legal and done every day.

It will take some study and learning about real estate markets. This is an example in residential single family homes.

Whether you purchase with your money, a loan from the bank, or partner with someone who has the money or good enough credit for a loan does not matter. Let’s say that you purchase a 3 bed 2 bath 1500 sq ft home with a money partner who gets a loan.

Purchase Price: $100,000.

20% down payment, 80% bank loan at 6.0 % interest, 30 year amortization.

Your principal and interest payment is $599.55 taxes and insurance about $150.00

PITI monthly payment of about $750.00

Now you advertise that you have a 3 bedroom, 2 bath home for sale (on a lease with option to purchase agreement). Just like a bank loan they are responsible for all maintenance and repairs (because they are buying, not renting)

Lease Terms: Purchase price when they exercise the option: $150,000.

Monthly payment: $1,250.

Non refundable down payment: $10,000. Depending on how you structure the agreement with your money partner, you can spit this, or keep it all for yourself. So the lessee will still owe $140,000.

Again, depending on your agreement, lets say you split the cash flow with the money partner. You each get $250 per month cash flow.

So where is the money printed?

When the lessee signs the agreement with the purchase option, you take the 140,000 that they owe, and subtract the 100,000 (80,000 owed to the bank and 20,000 owed back to the money man) which leaves $40,000.

That $40,000 goes into your equity account (on paper). In two months or 5 years or whenever the lessee gets a bank loan and pays off the $140,000 that is owed, you pay off the bank and investor $100,000 and you put the bank cashier’s check for $40,000 into your bank account.

So where did that $40,000 come from? It did not exist before you signed the agreement with the lessee.

You just printed it up! You created $40,000 out of thin air!

That is how you print your own money legally. With knowledge and paperwork.

Thanks for the responses. I have actually started looking all the way from Scottsboro to Florence. Looks like there are some good opportunities there. I am new to BP so I haven't figured out all the colleague stuff, votes, etc. I am very old school. Do not do facebook, twitter, tweet, snap, chat, flip, trip, strip or any social media. Very private person by nature. Decided to go ahead and put some posts on bp to try and encourage new investors to take the plunge.

I have studied dozens of real estate training guru's material. Some works, and some sounds good in seminars and gets everybody hyped but doesn't work worth crap in the real world. So I got started and modified the plan as I went to meet current economic conditions, lending environments, and my preferences.

I hated all 30 jobs I ever had and just wanted enough passive income so that I did not need a job. I did not even want to do flips and make 30k and then the next week have zero income if I did not go back to work. So I decided to focus exclusively on cash flow. Over time I sold off some properties and made good capital gains. Also collect some money on down payments and late fees, but I do the deal based on the cash flow it will provide. Everything else is icing.

The overview is that I find a person with money to invest, I find a deal, sign a joint venture agreement giving me 50% ownership in the property and 100% control. I get the investor connected with the lender, the investor puts up a specific amount of money (depending on the price of the property) in return for a fixed cash on cash annual return, and then I manage it. My income will depend on how well I do my job of managing. The investor gets a check monthly even if the property is vacant. So I never have vacancies over 2 months. The next lessee down payment goes to me and covers my out of pocket for the vacancies. I do not need a property management license since I am part owner.

We do a long term lease with option to purchase. I get to keep all of the non refundable down payment from the Lessee, usually between $3,000 and $10,000, I get whatever cash flow is left over after the investor is paid, I get any late fees collected, and I get the lions share of capital gains when we eventually sell.

In the long run I make more money than the investor, but they do not care because they are getting (depending on the deal) 15% or 20% cash on cash return on their money. They pay for no repairs, maintenance, or vacancies. We have handled 95 properties and every investor has been paid the agreed upon monthly payment for 20 years. I manage my money very conservatively so that I can take care of my investors first. That keeps them coming back and also providing referrals.

So that is my niche. Single family homes on lease option. I figure that if you can only do one thing, do it well. My passive income (takes about 10 hours a week to maintain) is north of 200K. It also goes through LLC's and C-Corps and gets expensed legally to minimize the tax implications.

If you get the knowledge, there are billions of dollars out there looking for a place to invest, but they do not have the knowledge and do not have the time to get it. So if you do not have money yourself, study until you know a good deal when you see it and then you can partner with the people with the money.

In baseball terms I consider myself a good T ball player. The professional investors who play in the big leagues do houses, condo's, flipping, wholesaling, commercial, retail, office, industrial, warehouse, vacation rentals, short term, AIRBNBs, event venue's, and a hundred other strategies. I just figured out how to hit a single every at bat off a tee.

How is that for a brain picking?