All Forum Posts by: Patti Robertson

My husband and I joined HVA as franchisees in 2007 with franchise and business experience, but virtually zero real estate investment experience. I'm now also a Development Agent with HVA. There is no chance of us getting to where we are now without having been part of the franchise. We flip, wholesale, and hold. Franchisees can choose whatever exit strategies they prefer. The franchise agreement doesn't guarantee that the franchiser will lend us money, but with the exception of a very short time right after the crash, they have always lent to us at 100% for purchase and repairs. It's short term money (12 months max). It's perfect for flips. For rentals we refi once we get them leased with a local bank - also with zero out of pocket, because the loan is based on appraisal. Being a HV franchisee has allowed us to grow a very nice rental portfolio with almost no money out of pocket. If you google my name you will find several podcasts where I describe my experiences.

I don't know what podcast you listened to, but I am guessing you took the recommendation out of context. If you were "driving for dollars" and picking houses that look distressed, your number may make sense. Looking at houses in the MLS or sellers who replied to your marketing, it makes no sense.

I do rent to owns and use a separate "Option Agreement" and lease.  Here's a link to one of my option agreements.  Use your standard lease, but update it to say the tenant is responsible for all repairs.

https://www.dropbox.com/s/clywx0l9czydufi/OPTION%20%20TO%20PURCHASE%20REAL%20ESTATE%20-%20GYGAX.docx?dl=0

I don't advertise a sales price or terms, because those can be customized for your renter/buyer. For example, a VA buyer doesn't need a downpayment, so you would not need to offer a rent credit. For an FHA buyer, you could offer to apply part of the rent to a downpayment credit increase the price by the max amount of the credit. This allows the buyer to focus on fixing their credit and paying down debt without worrying about saving for a downpayment.

I hope this helps!

Go on your local SEC 8 website and find the list of available properties.  You should be able to find several PM companies who are advertising on the list.

At 17, you aren't old enough to be legally bound to a contract, so you will need your dad's assistance.  There are SO may options for you.  I'd suggest the first thing you do is find the local real estate clubs in your market and attend their meetings.  They will be able to bring you wholesale deals that are better than foreclosures.  They will also be able to share with you sources of money.  Find the rehabbers and ask if you can shadow them on a project.  You can do this!!!!!  

This time of year the only tenants we tend to only rent to SEC 8. Most people don't move from Oct - Feb unless they have to. We tend to get people who are first time voucher holders this time of year. I don't personally use credit score as rental criteria, but I do look at info on the credit report, in conjunction with income to ensure the tenant will be able to pay their rent. Post a copy of your ad so we can give you feedback on it.

I've had people sleep in my flips to ward off robberies.  Have you talked to your insurance agent about this?  It seems to me that if you are scheduling your contractors in round the clock shifts to mitigate break-ins, it would not void your policy.  You are technically hiring a security crew to protect the property. 

I agree with diversification of assets and income.  Personally, my husband and I do hair and houses.  We are Great Clips franchisees in addition to real estate investors.  I find employment law very similar to landlord-tenant law.

I think the operative word is "lower" rent.  I find all tenants in the low rent arena, SEC 8 or Non-SEC 8, requires much tighter rein to ensure they remain current and in compliance with the lease terms.

Making a rental criteria based on rent being paid with earned income vs. a government subsidy is not a violation of FHA, since source of income is not a protected class. Some municipalities deem it illegal to NOT accept a voucher, but it wouldn't violate any laws to give preference to voucher holders.